16 November 2022
The government of Indonesia is committed to implementing its downstream industry program in the mining sector. There is confidence this policy will boost Indonesia’s economic strength through non-tax state revenue (PNBP), dividend payments, and export duty. It is one of three major strategies devised by Jokowi to answer the various global economic challenges encountered.
PT Freeport Indonesia (PTFI) is responding earnestly to this position. In an interview with detikcom, Freeport-McMoRan Copper Chairman of the Board and CEO Richard C. Adkerson said initiating smelter development in Gresik was a major undertaking in support of Indonesian government policy. With the completion of the project, PTFI is expected to provide increased value addition through export-ready mineral products.
"In 2018, we reached an agreement with the government following months of negotiation and discussions. A focal issue in negotiations was PTFI's commitment to building a smelter in consistence with the government’s directive on industry downstream. Subsequently, we gave our commitment, it is a strong commitment, and we fully intend to fulfill this commitment,” Adkerson said on the sidelines of the B20 summit taking place in Nusa Dua Bali on Tuesday (15/11).
Adkerson went on to say smelter development is a suitable way for Indonesia to implement its policy on industry downstream in the mining sector. He said the country needs many smelters to process the various minerals extracted in Indonesian territory.
He was confident smelter development will indirectly boost Indonesia’s economic strength. Such projects will absorb large numbers of workers and will add value to the minerals produced. "This is a huge project costing more than 3 billion US dollars and will be the biggest single-line copper smelter in the world,” Adkerson revealed.
Adkerson highlighted the fact that PTFI is a company owned by Indonesia. As such, he asserts he fully supports the government downstream policy in the mining sector, Adkerson further disclosed PTFI has Papuans among its workforce who also occupy management-level positions.
"Freeport-McMoRan is bringing global advanced technology, we are increasing the number of Indonesian workers, 98 percent of our workers are Indonesians, with Papuans making up more than 40 percent, as well as at the management authority level that underwent changes last year, so we have a great collaboration taking place, we have been working together well since 1998, and I am confident this will continue, and we will help Indonesia to benefit from the opportunities the country has,” he ended.
https://news.detik.com/detiktv/d-6408892/dukungan-freeport-pada-tranformasi-ekonomi-ri
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