He admitted to facing tough challenges during his 10-year tenure, especially in convincing mining companies to invest in smelter construction.
"One of the hardships in my administration is to convince mining companies to build smelters," he remarked at the event on Monday.
The president spoke of having engaged in negotiations with Chairman of the Board of PT Freeport, Richard Adkerson, since 2017.
Jokowi acknowledged that the negotiations were tough since the investment required to build the smelter amounted to Rp56 trillion (USD1= around Rp15,178).
"Therefore, the company needs to calculate the benefits of building the smelter," the president noted.
After land preparation was completed in 2018, the head of state conducted a groundbreaking to commence construction of the smelter.
"After 30 months, thank God, we can inaugurate this smelter," he remarked.
On the occasion, President Widodo also urged Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, to immediately complete the divestment of 10 percent of PT Freeport Indonesia's shares.
The 10 percent divestment of PT Freeport Indonesia's shares is one of the requirements for extending the company's special mining business permit (IUPK).
The smelter factory of PT Freeport Indonesia in Gresik is part of the supporting program for the downstreaming of the mineral resource industry in Indonesia.
Based on a special mining business permit, the operation of the second smelter owned by PT Freeport Indonesia allows mineral resources to be fully managed from upstream to downstream domestically.
This smelter functions as a copper refining facility with the largest single-line design in the world. The smelter is equipped with main facilities such as a copper smelting and refining plant with a precious metal refining unit and various supporting facilities.
The supporting facilities prepared are port, concentrate warehouse, slag treatment, steam dryer, oxygen plant, sulfuric acid processing, desalination, and wastewater and surface water treatment installations.
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Translator: Andi Firdaus, Resinta Sulistiyandari
Editor: Rahmad Nasution
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