Jokowi's Government Builds Freeport Smelter In Gresik, Social Media Activist Yusuf Muhammad: SBY What Are You Doing For 10 Years, Making Albums?

President of the Republic of Indonesia, Joko Widodo. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Social media activist Yusuf Muhammad praised the performance of President Joko Widodo (Jokowi) who succeeded in building the Freeport smelter in Gresik Regency, East Java. He also quipped Jokowi's predecessor, Susilo Bambang Yudhoyono, for the success of the smelter construction.

Yusuf admitted that he was surprised why all the work was carried out in the Jokowi era. He questioned why not in the SBY era. The workers in question are the disbandment of Petral which is a mafia nest, controlling the majority of Freeport shares, taking over the Rokan Block and Mahakam Block.

Then, Jokowi also built thousands of kilometers (KM) of roads, ports, airports, cross-border posts, and built bridges to connect all corners of the country. In fact, he said, for matters at the RT level and the village head had complained to Jokowi.

Then, Yusuf also questioned what the Democratic bosses did during the 10 years he served as the fifth and sixth President of Indonesia. Because, according to Yusuf, Indonesia should have long ago had a smelter to process the abundant natural resources in the country.

"But why is it only now building a smelter? Why is it only in the Jokowi era? So what has SBY been doing for 10 years in leading Indonesia? Is he just busy making albums of songs?," he was quoted as saying on the 2045 TV YouTube channel, Thursday, October 14.

Yusuf also said he was proud because in the Jokowi era the government was able to control the majority of PT Freeport Indonesia's shares of 51.24 percent. He also compared Freeport's share ownership during the SBY and Jokowi eras.

"Why in the SBY era, not many people protested when our country only controlled 9.36 percent of Freeport's shares," he said.

The Freeport smelter development plan has been around since the SBY era

The construction of the smelter should have started in 1997 but was not implemented until the issuance of Law No. 4 of 2009 concerning Minerals and Coal aka the Minerba Law in the era of the Susilo Bambang Yudhoyono (SBY) administration.

Under this regulation, mining companies are given until 2014 to build a smelter. For this commitment, the US copper company received an export permit by the Indonesian government. But until that deadline Freeport has not done it.

The commitment to build the smelter finally came after the government succeeded in divesting Freeport's shares in 2018. PT Indonesia Asahan Aluminum (Persero) or Inalum controlled 51.23 percent of the shares for US$3.8 billion or more than Rp55 trillion.

At the same time, Freeport's contract of work or KK ends in 2022. The company can get a special mining business permit or IUPK until 2041 on condition that it must build a smelter. The company finally agreed to the terms.

Therefore, Freeport cannot reason to postpone the project because its current shareholder is the parent State-Owned Enterprise (BUMN) mining Inalum Mining Industry Indonesia (MIND ID).

After a long journey, President Jokowi finally inaugurated the construction of a smelter owned by PT Freeport Indonesia in Gresik Regency, East Java Province. The project is targeted to be completed and fully operational in 2024.

Jokowi said the smelter could process 1.7 million tons of copper concentrate. But also 480 thousand tons of copper metal. According to him, this is a very large number.

"Earlier we received a report that the smelter to be built with a single line design is the largest in the world because it is able to manage 1.7 million tons of copper concentrate per year. Or 480 thousand tons of copper metal," said Jokowi, during his remarks at the inauguration of the smelter construction, Tuesday, October 12.

Jokowi likens the production of 1.7 million tons of copper concentrate to 600 thousand small trucks. Where, each truck is filled with as much as 3 tons of copper concentrate.

"That means there are 600 thousand trucks lined up here, imagine how big this is," he said.

In addition, Jokowi explained that the construction of the PT Freeport Indonesia smelter in the Gresik SEZ is a government step to provide added value for the country. So, Indonesia will no longer export raw goods.

"Don't let us own the mine, we have the concentrate, the smelter, the downstream is in other countries, as the Minister said earlier in Spain, Japan, the added value means those who enjoy them. This is why the PT Freeport smalter was built domestically, namely in Gersik, East Java province," he said.

The former governor of DKI Jakarta hopes that Freeport Indonesia's presence in the special economic zone in Gresik will attract other industries to enter the Gresik SEZ, especially the copper derivative industry, to invest.