Related News

Jumat, 28 Juni 2024

Minister of Investmen and Downstream Industry: Gresik Copper Smelter Completes Indonesia's Electric Battery Ecosystem

Gresik, June 28, 2024 – Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia stated that the copper smelter built by PT Freeport Indonesia (PTFI) will further strengthen Indonesia's electric battery ecosystem. Bahlil made this statement during the inauguration of PT Freeport Indonesia’s smelter project at the Java Integrated and Industrial Port Estate (JIIPE) in Manyar, Gresik, East Java, on Thursday (June 27).

In his speech, the Minister of Investment emphasized that copper downstreaming is a crucial step in supporting the electric battery ecosystem. “We believe that copper downstreaming is an essential instrument for raw materials for batteries. Copper foil, for instance, is used to wrap batteries,” Bahlil explained.


Bahlil further highlighted the importance of copper in the electric vehicle industry. “Electric vehicles require copper. If the ecosystem is established, we will become one of the countries with a complete set of raw materials for electric batteries,” said Bahlil.


On this occasion, Bahlil also shared the challenges faced in realizing the smelter project. “Today, I am grateful and happy because this has been a long journey. I know very well that building this smelter was not easy. At one point, there were plans to relocate it, and the dynamics were extraordinary. In 2021, when we decided to proceed with construction, COVID-19 emerged. However, today we can witness this smelter together,” Bahlil said.


Echoing Bahlil, Coordinating Minister for Economic Affairs Airlangga Hartarto mentioned that the smelter’s construction is very timely as the world is currently shifting toward renewable energy. “Copper downstreaming is becoming increasingly important, especially for industries in power generation, electric mobility, and the transition from internal combustion engines to electric vehicles,” Airlangga stated.


President Director of PT Freeport Indonesia, Tony Wenas, expressed his hopes regarding smelter production. “We hope this smelter can begin production around August. Before we start operations, it will take 6–7 weeks to preheat the facilities before inserting the concentrate. We expect the first production to occur by mid-August, hopefully coinciding with or in time for Indonesia’s Independence Day celebrations,” he explained.


PT Freeport Indonesia’s smelter is designed to refine 1.7 million tons of copper concentrate annually. Together with the smelter operated by PT Smelting, the total refining capacity reaches 3 million tons per year. This will produce approximately 1 million tons of copper cathodes, 50 tons of gold, and 200 tons of silver annually. The cumulative investment value for this project, which occupies 100 hectares in the JIIPE Special Economic Zone (KEK), has reached IDR 55 trillion or approximately USD 3.67 billion. 


For further information, please contact:

R. Leidy Novanda

Senior Public Relations Officer

Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: humas@bkpm.go.id

Powered by sagara 2022