IIPC

Gresik, 27 June, 2024 - Minister of Investment/Chairman of the Investment Coordinating Board (BKPM), Bahlil Lahadalia mentioned that the copper smelter built by PT Freeport Indonesia (PTFI) will strengthen the electricity battery ecosystem in Indonesia. Bahlil conveyed this during the inauguration of PT Freeport Indonesia's smelter project at the Java Integrated and Industrial Port Estate (JIIPE), Manyar, Gresik, East Java, on Thursday, June 27, 2024.

In his speech, the minister of investment conveyed that downstreaming copper is a crucial step in supporting the electric battery ecosystem. "We believe that downstreaming copper is part of the strategy for raw materials for batteries. Copper foil is used to wrap batteries," he explained

Bahlil also emphasized the importance of copper in the electric vehicle industry. “Electric vehicles require copper. So, once the ecosystem is already in place, we will be one of the countries with a complete component for electric battery raw materials,” he said.

On that occasion, Bahlil also shared the challenges faced in achieving the smelter "Today, I am happy and grateful because this has been a long journey. I know very well that building this smelter was not easy, there were moments when it almost had to be relocated, the dynamics were demanding. In 2021, when we decided to build it immediately, there was COVID-19. But today, we can witness this smelter together," expressed the Minister of Investment.

Following Bahlil's remarks, Airlangga mentioned that the construction of the smelter was well-timed given the current trends towards renewable energy usage. "Certainly, the downstreaming of copper becomes crucial, especially for industries in power generation, and also in electric mobility, transitioning from internal combustion engines to electric vehicles."

President Director of PT Freeport Indonesia, Tony Wenas, stated his hopes regarding the smelter production. "Our hope is that the smelter can commence production around August. Before we begin operations, it will take 6-7 weeks for preheating before introducing the concentrate. Therefore, the first production is estimated to start in mid-August, hopefully before or during Indonesia's Independence Day celebrations," he explained.

The PT Freeport Indonesia smelter is designed to refine 1.7 million tons of copper concentrate per year, and together with PT Smelting's operated smelter, the total refining capacity reaches 3 million tons per year. This will generate approximately 1 million tons of copper cathode, 50 tons of gold, and 200 tons of silver annually. The cumulative investment value for the project, situated on a 100-hectare site in the JIIPE Special Economic Zone, has reached Rp55 trillion or approximately $3.67 billion.