Indonesia Breaks Ground on Integrated Copper, Gold Downstream Project\nin E. Java<\/p>\n
Gresik, East Java. Indonesia has begun construction of an integrated\ncopper and gold downstream project in East Java, as Southeast Asia\u2019s\nlargest economy pushes to process more of its mineral resources\ndomestically and strengthen strategic industries.<\/p>\n
State-owned mining holding MIND ID on Wednesday launched the project\nat the Java Integrated Industrial and Ports Estate (JIIPE) special\neconomic zone in Gresik. The development is part of a broader rollout of\n13 downstream projects under the government\u2019s second-phase\nindustrialization program.<\/p>\n
The facility will process copper concentrate from gold miner Freeport\nIndonesia into higher-value products, including copper cathodes,\nprecious metals, and components used in ammunition and defense\nsystems.<\/p>\n
Under the plan, copper cathodes produced at Freeport\u2019s Gresik smelter\nwill be further processed into brass mill products and brass cups by\nstate-owned defense manufacturer Pindad, part of the DEFEND ID holding.\nThe facility is designed to produce up to 10,000 tons annually.<\/p>\n
Meanwhile, anode slime generated from the smelting process will be\nrefined by state-owned gold miner Aneka Tambang, or Antam, into gold\nbullion. The precious metals refinery is projected to produce up to 30\ntons of gold per year, equivalent to around 5 million retail units.<\/p>\n
Tedy Badrujaman, director of downstream strategy and mineral\necosystem at MIND ID, said the project reflects Indonesia\u2019s broader\nambition to move up the value chain.<\/p>\n
\u201cThis is a milestone that underscores Indonesia\u2019s commitment to\nbecoming a sovereign industrial nation,\u201d Tedy said. \u201cDownstream industry\nis not just about exporting raw materials but about creating high-value\nproducts domestically.\u201d<\/p>\n
The initiative is expected to strengthen the country\u2019s industrial\nbase from upstream processing to finished products, particularly in\nstrategic sectors such as defense manufacturing.<\/p>\n
The project is also seen as a major job creator. MIND ID estimates\nthe copper downstream segment could employ up to 7,000 workers, while\nthe gold refining facility is expected to add around 500 jobs.<\/p>\n
Local authorities have voiced support for the development, citing its\npotential to boost regional economic growth and attract further\ninvestment.<\/p>\n
East Java Vice Governor Emil Dardak said the JIIPE special economic\nzone is being positioned as a competitive industrial hub capable of\ndrawing global players.<\/p>\n
\u201cWe want JIIPE to have strong advantages, supported by infrastructure\nand a complete industrial ecosystem,\u201d Emil said. \u201cThe presence of\nFreeport\u2019s smelter has already created important raw materials like\ncathodes and anodes, which in turn attract downstream industries such as\nPindad and Antam.\u201d<\/p>\n
The groundbreaking ceremony in Gresik was part of a nationwide launch\nled virtually by President Prabowo Subianto from Central Java.<\/p>\n
Indonesia has made downstream industrialization a cornerstone of its\neconomic policy, particularly in the mining sector, where export\nrestrictions on raw materials have encouraged investment in smelting and\nprocessing facilities. By integrating copper and gold processing within\na single industrial zone, the government aims to maximize value\ncreation, reduce reliance on raw exports, and build a more resilient\nmanufacturing base tied to its natural resources.<\/p>\n
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