Politics
Jokowi: Investment in Gresik Smelter Adds IDR 80 Trillion to State Revenue
Jakarta, 23/9 (ANTARA) – President Joko Widodo (Jokowi) said that the investment in the construction of the PT Freeport Indonesia smelter in Gresik, East Java, has helped increase state revenue by up to Rp80 trillion.
“My calculations are that the state's revenue from PT Freeport Indonesia is around IDR 80 trillion,” President Jokowi said in his speech at the inauguration of the PT Freeport Indonesia smelting plant in Gresik on Monday, followed by the Presidential Secretariat's (online) network in Jakarta.
According to initial calculations, the President said, the state's total revenues will come from various sources, including dividends, royalties, regional taxes and export taxes.
President Jokowi explained that the project was a strategic step to reduce Indonesia's dependence on raw material exports for mineral resources.
By transforming natural resources domestically, it is hoped that Indonesia can transform itself into an advanced industrial country, the president added.
The Head of State said the construction of this smelter would also create many jobs, support downstream programs and encourage more productive economic growth.
Jokowi said an investment of IDR 56 trillion for the smelter will process 1.7 million tons of copper concentrate from Papua, producing 900,000 tons of copper cathode, 50 tons of gold and 210 tons of silver.
“The amount is not small,” he said.
Furthermore, this industry is expected to involve many micro, small and medium enterprises (MSMEs) through various business opportunities, such as catering and subcontractors related to all foundry activities.
The existence of the foundry is also expected to spawn spin-off industries, including the production of copper foil and cables, as well as the possibility of producing selenium for semiconductors.
“We hope that this will also immediately give rise to spin-off companies, copper spin-off industries around PT Freeport Indonesia,” he said. (Reporter: Andi Firdaus)
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