The presence of PTFI in the Gresik KEK is expected to become one of the attractions in establishing an area with an ecosystem supporting the downstream industry, especially electric vehicles (EV).
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto inaugurated the operation of the PT Freeport Indonesia (PTFI) smelter in the Special Economic Zone (KEK) in Gresik, East Java.

The PTFI smelter is the world's largest single-line copper smelter, with a refining capacity of up to 1.7 million tons of copper concentrate per year.

"We lauded the work of the management. This is an extraordinary factory. This factory is in line with the renewable energy trend. It requires critical minerals, including copper," he noted in a statement from his office on Thursday (June 27).

The project, which occupies 100 hectares of land, has a cumulative investment value of US$3.7 billion, he explained.

This investment will not only provide benefits for domestic construction companies but will also create multiplier effects for the people in Gresik, Hartarto added.

Along with the smelter operated by PT Smelting, the two will refine three million tons of copper concentrate annually, with a production of around 600 thousand tons of copper cathode, 50 tons of gold, and 200 tons of silver per year.

With the operation of this smelter, all copper concentrate produced by PTFI can be processed and refined domestically, similar to the anode sludge from PT Smelting.

The presence of PTFI in the Gresik KEK is expected to become one of the attractions in establishing an area with an ecosystem supporting the downstream industry, especially electric vehicles (EV).

As of March 2024, the Gresik KEK recorded an investment value of Rp75.2 trillion (US$4.5 billion) and absorbed more than 35 thousand workers.

After the inauguration process, Hartarto and his entourage reviewed the PTFI smelter area by visiting the jetty area, anode casting, and central control building.

The minister affirmed that the operation of the PTFI smelter can maintain national economic resilience.

Meanwhile, the government is initiating a downstream industry policy to support increasing added value to the national economy as well as being one of the keys to maintaining national economic resilience.

To support this downstream policy, the role of domestic off-takers is important, including users of copper raw materials, Hartarto explained.

Furthermore, the supply of Indonesia's downstream copper products still relies on imported products such as copper tubes, copper tape, and copper evaporators, as well as components needed in EV production such as cables, inverters, and batteries.

To meet these needs, the government has continually encouraged processing industries in Special Economic Zones (KEK) to conduct downstream processing.

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Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Arie Novarina
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