REPUBLIKA.CO.ID, GREECE -- Indonesian President Joko Widodo said during his 10 years as President, one of the most difficult jobs was to realize downstream. Jokowi said inviting companies to build smelters was not easy because it had to do with a large investment value.
“I remember, one of the most strenuous and exhausting jobs during my 10 years as president was getting mining companies to build smelters. The work is very strenuous. I remember, in 2017 we negotiated with Richard to reach an agreement to build a smelter in Gresik. The negotiations are very difficult, because I know that this investment is not small, IDR 56 trillion,” the President said at the inauguration of PT Freeport Indonesia's first production of Smleter Gresik on Monday (23/9/2024).
Jokowi said in doing downstream he did not deny that the company needed large investments. Companies need to calculate and consider the profit and value of the investment.
However, he insists this needs to be done to add value for a better country and encourage Indonesia to have better economic growth.
“The most important thing for the president is the acceptance of the country, both in the center and in the regions,” Jokowi stressed.
Jokowi detailed that state receipts from PT Freeport Indonesia could reach about Rp80 trillion, both in the form of dividends, royalties, agency VAT, employee VAT, local taxes, exit duties, and various other taxes.
He also emphasized that the development of PTFI smelters is our step to make Indonesia a developed industrial country, capable of processing its own natural resources, without having to export raw materials. In addition, it will open up huge employment.
“We also hope that a derivative industry will soon be born around PT Freeport Indonesia. Some have already started copper foil production, and I am sure it will be followed by cable factories and others, including the one that Erick Thohir said about the selenium produced by this copper smelter, so that it can be used for semiconductor production,” Jokowi said.
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