Java Integrated Industrial and Ports Estate

Kawasan Ekonomi Khusus, Gresik, East-Java - Indonesia

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Articles & News About the Industrial Zone JIIPE in Gresik

President Jokowi Inaugurates Production at PT Freeport Indonesia Smelter, Emphasizing Downstream Processing and State Revenue

President Jokowi Inaugurates Production at PT Freeport Indonesia Smelter, Emphasizing Downstream Processing and State Revenue

President Joko Widodo inaugurated the production at PT Freeport Indonesia’s smelter located in the Gresik Special Economic Zone (SEZ) at JIIPE, Gresik Regency, East Java, on Monday, September 23, 2024. The smelter, built with an investment value of Rp56 trillion, marks a significant government effort in promoting industrial downstream processing in Indonesia.

In his remarks, President Jokowi explained that the negotiation process for the smelter’s construction was challenging. However, after a long journey, the smelter project, spanning over 100 hectares, is now completed and ready to operate.

“After 30 months, alhamdulillah, today we can inaugurate it,” said the President.

President Jokowi also highlighted the positive impact of the smelter on state revenue, which is projected to reach Rp80 trillion. According to the President, this figure is highly significant compared to revenue from exporting raw materials alone.

“My estimate is that state revenue will amount to around Rp80 trillion from PT Freeport Indonesia, including dividends, royalties, corporate income tax, employee income tax, regional taxes, export duties, and export taxes. This is a very large figure,” said the President.

Furthermore, the President emphasized that the establishment of this smelter is part of Indonesia's effort to process its own natural resources and reduce raw material exports. Through this smelter, PT Freeport Indonesia can refine 1.7 million tons of copper concentrate from Papua.

“This is no small amount,” the President added.

Additionally, the smelter is expected to have a significant impact on the small and medium enterprise (SME) sector across the country. The President also noted that this facility will boost the development of copper-related industries in the Gresik region.

“I believe that it may be followed by the establishment of cable factories and other industries entering our country. As Minister Erick Thohir mentioned, this smelter also produces selenium, which can be used for semiconductor production,” the President stated.

President Jokowi was accompanied at the inauguration by Minister of State-Owned Enterprises Erick Thohir, Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of Investment Rosan Roeslani, Fahri Hamzah, Acting Governor of East Java Adhy Karyono, Acting Governor of Central Papua Ribka Haluk, Gresik Regent Fandi Akhmad Yani, President Director of PT Freeport Indonesia Tony Wenas, Chairman of the Board of Freeport Mc-Moran Richard Adkerson, and President & CEO of Freeport Mc-Moran Kathleen L. Quirk. (BPMI Presidential Secretariat)


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