Prabowo to Launch Freeport’s Smelter Production in Gresik Industrial Hub

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Senin, 17 Maret 2025 - 13:02 WIB

Jakarta, VIVA – President Prabowo Subianto is set to inaugurate the production of a precious metal refinery at Freeport Indonesia’s (PTFI) smelter, located in the Java Integrated Industrial Estate (JIIPE), Gresik, East Java, on Monday (March 17).

Earlier, the smelter had already been operational, producing copper cathodes. This smelter complex is touted as the world’s largest copper processing facility and is part of Indonesia’s National Strategic Projects (PSN), aimed at supporting mining downstreaming and strengthening the national metal industry supply chain.

The presence of this smelter is expected to generate significant economic benefits both locally and nationally.

The Manyar Smelter, built on a 100-hectare site, represents PTFI’s commitment to fulfilling the requirements of its Special Mining Business License (IUPK), which was granted in December 2018.

This license allows Freeport Indonesia to extend its operations until 2041, on the condition that a new smelter is built and tax obligations to the government are met.

The national strategic project has been under construction since 2019, with an investment of approximately $2.8 billion (IDR 45.79 trillion, based on an estimated exchange rate of Rp 16,360 per USD).

The project has engaged around 2,600 workers, including construction workers, operators, and pre-construction personnel.

Previously, Freeport had also established its first smelter in Gresik—Smelting, in collaboration with Mitsubishi since 1996.

That project, valued at $500 million (IDR 8.17 trillion), has been capable of processing 1 million tons of copper concentrate into 300,000 tons of copper cathodes per year.

According to the company’s official website, Smelting refines and processes 1 million tons of copper concentrate annually, effectively handling 40% of the total copper concentrate produced in Papua.

The newly built smelter has a processing capacity of up to 2 million tons per year, bringing Freeport Indonesia’s total copper processing capacity to 3 million tons per year across both facilities.

In addition to producing copper cathodes as its main product, both smelters also generate high-value byproducts, including, Sulfuric acid, Gypsum, Anode slime, Copper slag, and Copper telluride.

These byproducts are utilized across various industries, including fertilizer, cement, semiconductors, and optical devices.

Looking ahead, PTFI and the Indonesian government will continue working hand in hand to ensure Freeport Indonesia’s smelter can distribute the benefits of copper processing worldwide.