President Joko Widodo (Jokowi) announced that the investment in PT Freeport Indonesia’s smelter plant in Gresik, East Java, is projected to increase national revenue by IDR 80 trillion. "Based on my calculations, the state will receive around IDR 80 trillion from PT Freeport Indonesia," said President Jokowi during the inauguration of the smelter plant on Monday, as broadcast by the Presidential Secretariat in Jakarta. He added that the revenue would come from multiple sources, including dividends, royalties, local taxes, and export duties. Jokowi emphasized that this project is a strategic step to reduce Indonesia's reliance on raw mineral exports. By processing resources domestically, Indonesia aims to become a developed industrial nation.
Furthermore, Jokowi stated that the smelter's construction, with an investment of IDR 56 trillion, will process 1.7 million tons of copper concentrate from Papua, resulting in 900,000 tons of copper cathodes, 50 tons of gold, and 210 tons of silver. "These are significant amounts," he noted. The project is also expected to generate numerous job opportunities, promote downstream industries, and foster productive economic growth. Additionally, the smelter is anticipated to involve many small and medium enterprises (SMEs) through business opportunities such as catering and subcontracting. It is hoped that the smelter will give rise to derivative industries, including copper foil and cable production, as well as selenium for semiconductors.
