Jakarta (ANTARA) - President Joko Widodo (Jokowi) has said that investment in the development of a smelter belonging to PT Freeport Indonesia in Gresik, East Java, would help increase state revenue by up to Rp80 trillion (around US$5.26 billion).
"Based on my calculation, there is around Rp80 trillion state revenue from PT Freeport Indonesia," he observed at the inauguration of the smelter in Gresik on Monday, which was followed online from Jakarta.
Based on the initial calculation, the state revenue would be obtained from several sources, including dividends, royalties, local taxes, and export taxes, he informed. President Widodo explained that the project is a strategic step to reduce Indonesia's dependence on the exports of mineral resource raw materials.
By processing natural resources domestically, Indonesia is expected to transform into an advanced industrial country, he added. The President said that the construction of the smelter would also create many jobs, support the downstreaming program, and encourage more productive economic growth.
He noted that with an investment of Rp56 trillion (around US$3.68 billion) investment, the smelter will process 1.7 million tons of copper concentrate from Papua, produce 900 thousand tons of copper cathode, 50 tons of gold, and 210 tons of silver.
"The amount is not small," he affirmed.
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Furthermore, the industry is also expected to involve many micro, small, and medium enterprises (MSMEs) through various business opportunities, including catering businesses and subcontractors related to smelter activities.
The presence of the smelter is also expected to stimulate the birth of derivative industries, including copper foil and cable production, as well as the potential for producing selenium for semiconductors.