Supporting downstreaming, the Minister of Industry encourages the development of the Freeport smelter at JIIPE Gresik

The Ministry of Industry (Kemenperin) continues to strive to boost the competitiveness of the national industry through downstream minerals. One of them is by encouraging the construction of a smelter or refining facility for PT Freeport Indonesia in the Java Integrated Industrial and Port Estate (JIIPE) industrial area in Gresik, East Java.

“There are many downstream products that can be pursued so that later in Indonesia there can be factories that will use refined products from Freeport. The added value can continue to be encouraged, “said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in his official statement, Saturday (10/10).

PT Freeport Indonesia is a mining company affiliated with Freeport-McMoran and the mining industry holding company of the State-Owned Enterprises (BUMN), Mining Industry Indonesia (MIND ID).

“The company is building copper refineries as raw material for the automotive industry, electronics industry, cables, air conditioning factories, construction of electrical installations toelectric vehicles,” said Agus.

The Minister of Industry has reviewed the location of the PT Freeport Indonesia smelter project in the JIIPE Gresik industrial area, East Java, which was built on 100 hectares of land, as well as a supporting area of ​​120 hectares.The refinery to increase the metal content is projected to become the largest copper refinery in the world.

“However, currently MIND ID, as the holding for the state-owned mining industry, informs that smelter construction is experiencing obstacles due to the impact of the Covid-19 pandemic on contractor mobility in the field,” he said.

During the visit, the Minister of Industry was received directly by the Managing Director of PT Berkah Kawasan Manyar Sejahtera (BMKS) Bambang Soetiono and the President Director of PT Freeport Indonesia Clayton Allen Wenas.

In his explanation, the President Director of PT BKMS said that JIIPE is the first integrated area in Indonesia with a total area of ​​3,000 hectares, consisting of industrial areas, multipurpose ports, commercial and residential areas.

The President Director of PT BKMS said that JIIPE is the first integrated area in Indonesia with a total area of ​​3,000 hectares, consisting of industrial areas, multipurpose ports, commercial and residential areas.

“Apart from being equipped with sufficient utilities, the JIIPE Industrial Estate is also integrated with a port with a depth of -16 meters below sea level, so that large vessels with a capacity of 100,000 DWT (deadweight tonnage) can load and unload at JIIPE Port,” said Bambang.

Meanwhile, in order to continue to boost the competitiveness of industries located in JIIPE, the government is also making various efforts, including reviewing the proposed JIIPE industrial area to be designated as a Special Economic Zone (KEK), as well as a review of the proposed reduction in gas prices for the JIIPE power plant.

Following up on the study, the Ministry of Industry has conducted internal discussions on the proposed reduction in gas prices for industrial estates with proposals for lowering gas prices for other industries.”Currently, it is also in the data collection stage for industrial areas that require a reduction in gas prices,” said Agus Gumiwang.

The plan is for the JIIPE industrial area to develop solar panels as an alternative to electricity supply with renewable energy.Solar panels will be built floating on top of seven reservoirs and on the roof of the factory.

For this reason, the Ministry of Industry continues to coordinate with other ministries and institutions in the implementation of the plan.”The Ministry of Industry continues to coordinate with the Ministry of Energy and Mineral Resources (ESDM) and related parties regarding the licensing of solar panels at JIIPE,” he concluded.

Source:https://industri.kontan.co.id/news/dukung-hilirisasi-menperin-dorong-pengembangan-smelter-freeport-di-jiipe-gresik