Freeport Indonesia Begins Operations at New Copper Smelter in East Java
PT Freeport Indonesia has officially commenced operations at its new copper smelter in Gresik, East Java. The $3.7 billion facility is set to process 1.7 million tonnes of copper concentrate annually, with an output capacity of 900,000 tonnes of copper cathode, 50 tonnes of gold, and 210 tonnes of silver each year.
President Joko "Jokowi" Widodo inaugurated the facility on Monday, expressing hope that the smelter would drive domestic production of copper derivatives such as copper foil and encourage the use of byproducts like selenium for the semiconductor industry.
In his remarks, Jokowi praised the economic contributions of Freeport Indonesia, which has provided approximately Rp 80 trillion ($5.28 billion) to state revenue. He emphasized the government's intention to transition from a consumption-driven economy to one fueled by production and productivity, including efforts from both state-owned and private companies.
The President also inaugurated Amman Mineral Nusa Tenggara's new copper smelter in Sumbawa, West Nusa Tenggara, valued at Rp 21 trillion. Amman’s facility will process 900,000 tonnes of copper concentrate annually, yielding 222,000 tonnes of copper cathode, 55 tonnes of gold, and 77 tonnes of selenium.
Jokowi lauded Amman Mineral’s efforts, marking the smelter inauguration as a milestone in Indonesia’s copper industry. Amman’s president commissioner, Hilmi Panigoro, emphasized that the new smelter strengthens Indonesia's position in the global copper supply chain and supports the country's economic resilience through the mining sector.
Indonesia’s push to develop downstream industries based on its abundant mineral resources is centered on smelter development. By encouraging domestic processing of metals, the government aims to increase the export of higher-value products. The country has already enforced bans on nickel and bauxite exports, requiring companies to process these minerals domestically before shipping them abroad. A ban on copper concentrate exports, initially planned for mid-2023, is now set for December this year due to delays in the completion of smelters.
