The operation of PT Freeport Indonesia's copper smelter in Gresik, East Java, is set to create a new economic foundation for Indonesia, which has long relied on domestic consumption. This downstreaming project is expected to significantly contribute to state revenue through taxes, royalties, and export duties, while also promoting the growth of other industries. During the smelter inauguration on 23 September 2024, President Joko Widodo highlighted the potential revenue of approximately IDR 80 trillion annually, generated from dividends, royalties, and various taxes. The event was attended by notable figures such as Freeport-McMoran's Chairman Richard C. Adkerson, CEO Kathleen L. Quirk, and several Indonesian ministers.

The smelter, constructed with an investment of USD 3.6 billion (around IDR 58 trillion), has the capacity to refine 1.7 million tons of copper concentrate annually, with the first production starting in August 2024. This new facility, alongside PT Smelting Gresik’s existing smelter, will eventually refine up to 3 million tons of concentrate per year. President Widodo expressed optimism that the project would foster the involvement of various industries, especially micro, small, and medium enterprises (MSMEs), and encourage the development of downstream copper-based industries. The smelter also marks the start of a shift from raw material exports to higher value-added production. It concludes that the Freeport smelter is key to Indonesia’s future economic growth and industrial diversification.

Source: https://www.kompas.id/baca/ekonomi/2024/09/23/proyek-hiliriasi-tambang-jadi-fondasi-baru-ekonomi-ri