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Facing the whirlwind of global economic uncertainty challenges, the strengthening of investment and business climate has become one of the government's ammunition to maintain national economic resilience. This strengthening is also reflected in the development of Special Economic Zones (SEZs), which is projected to accelerate economic growth, improve development equity, and increase competitiveness and added value.
During a working visit to the Gresik District in East Java Province on Thursday (2/02), Coordinating Minister for Economic Affairs Airlangga Hartarto directly assessed the level of progress in the development of the Gresik SEZ and the construction process of the Manyar Smelter Freeport located within the Gresik SEZ.
Manyar Smelter Freeport is a refining and processing facility for copper concentrate owned by PT Freeport Indonesia, which is currently being built in the Gresik SEZ. The smelter is the world's largest single line copper smelter built in accordance with the mandates in the Special Mining Business License (IUPK).
"The government appreciates PT Freeport Indonesia because the progress since it was groundbreaking by the President has reached 51.7% and this progress is in line with what was reported earlier and more than 18,000 piles have already been planted here and this is 100% completed, and this is an extraordinary investment," said Minister Coordinating Airlangga.
The smelter, which is built with a capacity to process 1.7 million tons of copper concentrate per year and a Precious Metal Refinery with a capacity of 6,000 tons per year, has a cumulative development progress as of December 31, 2022, of 51.7% and is expected to be completed in 2023 and operational in 2024.
Absorbing up to 11,000 workers, the smelter was built with an investment cost of USD1.63 billion or around IDR 25.5 trillion. This is a manifestation of PT Freeport Indonesia's commitment in supporting the government's downstream efforts.
The government has also provided support for the construction of the smelter, such as the designation of a Customs Area in the PT Freeport Indonesia area, the issuance of a masterlist for import duty exemptions and for the development of PT Freeport Indonesia.
"The government hopes that this project can be completed by the end of this year, the mechanical commissioning and according to the plan in May 2024, the production will be released," said Minister Coordinating Airlangga.
The visit was continued with a tour of the Gresik SEZ development, which covers an area of 2,167 hectares and operates as an SEZ through Government Regulation Number 71 of 2021 on the Gresik SEZ on June 28, 2021. The Gresik SEZ, which has main activities in the metal (smelter), electronics, chemical, energy, and logistics sectors, is also expected to become a new economic center for East Java Province.
The Gresik SEZ, which is built with a cost-efficient logistics concept, combines infrastructure that includes an inner port, a dry port, and access to toll roads to various domestic and international market distribution channels. The Gresik SEZ is currently attracting investment from various domestic and foreign companies and is expected to contribute to the creation of new job opportunities and support the national economic recovery.