Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the latest copper smelter built by PT Freeport Indonesia (PTFI) will further strengthen the electric battery ecosystem in Indonesia.
Speaking at the inauguration of PTFI’s smelter project in Java Integrated Industrial Port Area (JIIPE), Manyar, Gresik, East Java on June 27, 2024, Bahlil said that the downstream of copper is an important step to support the electric battery ecosystem.
“We believe that downstream copper is part of the raw material instrumentation for batteries. Copper foil is used to wrap batteries,” Bahlil said in a statement quoted on June 28, 2024.
“Electric cars need copper. So if the ecosystem is in place, we will be one of the countries that will have a raw material component for electric batteries,” he added.
On this occasion, Bahlil also discussed the challenges encountered in the construction of the foundry.
“Today I am happy and grateful, because it has been a long journey. I know very well that building this smelter is not easy, it was about to be moved, the dynamics require leniency. In 2021, when we decided to build it immediately, there was COVID-19. But today we can witness this smelter together,” he said.
Coordinating Minister for the Economy Airlangga Hartarto said the construction of the smelter was very timely as the world is currently in the trend of using renewable energy.
“Of course, the downstream (copper) is important, especially for the power generation industries, but also for electric mobility, with the shift from internal combustion engines to electric vehicles,” Airlangga said.
PT Freeport Indonesia President Director Tony Wenas expressed hope that the smelter could start production around August.
“Before we start operating, it will take 6 to 7 weeks to heat first and then put the concentrate. So we estimate that we can start production in mid-August, hopefully it can be done before or within the Indonesian Independence Day,” Tony said.
PT Freeport Indonesia’s smelter is designed to refine 1.7 million tons of copper concentrate per year. 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 cathode, 50 tons of gold and 200 tons of silver per year. The cumulative investment value of the project, which occupies 100 hectares of land in the JIIPE Special Economic Zone (KEK), has reached 55 trillion rupiah (approximately 3.67 billion US dollars).
