Hanin Marwah, Jakarta – The President Director of PT PLN, Darmawan Prasodjo, said the state-owned electricity company is ready to support PT Freeport Indonesia with electrical supplies.
"We fully support the Indonesian government in downstream implementation in the mining sector," he said, as quoted in a written statement on Thursday, September 26, 2024. A reliable and stable electricity for Freeport Indonesia's smelter could boost state revenue.
On Monday, September 23, President Joko Widodo or Jokowi inaugurated the production of the PT Freeport smelter in Gresik, East Java. Jokowi hopes the cathode factory could elevate Indonesia's status as an advanced industrial country.
"Indonesia wants to process its own natural resources and avoid exporting raw materials. This will also open up a huge employment opportunity," said Jokowi in his remarks, quoted from the Presidential Secretariat's live broadcast.
The construction of PT Freeport Indonesia smelter in Gresik spent Rp56 trillion in investment. The factory will process 1.7 million tons of copper concentrate brought in from Papua. This smelter will produce 900,000 tons of copper cathode – approximately 50 tons of gold and 210 tons of silver.
According to Darmawan, adequate electricity at the smelter is necessary to ensure an optimal downstream process that increases the added value of the mineral materials refined at the Freeport smelter.
PLN's electricity supply to the Freeport Indonesia smelter, according to Darmawan, was carried out in four stages. "And it has now reached a total maximum capacity of 170 MVA," he said.
The first stage was carried out in September 2023, with 30 Mega Volt Ampere (MVA), and continued with an additional 30 MVA in February 2024. The third stage was operated on April 1, supplying an additional 50 MVA for the Freeport smelter. Finally, the fourth stage supplied 60 MVA.
PLN has signed a Power Purchase Agreement with PT Berkah Kawasan Manyar Sejahtera (BKMS) as the manager of the JIIPE Gresik area. Later, BKMS will act as an extension of PLN in distributing electricity to the Freeport Indonesia smelter located in the area.
"Hopefully, other derivative industries could grow along with the full operation of this (Freeport) smelter. It will create a multiplier effect for economic growth in East Java," said Darmawan.