CIDISS
Center of Indonesian Development Information Strategic Studies
CIDISS
Construction of Freeport Indonesia Smelter to Absorb OAP Workers
By
Cidiss 99
on 12 December 2023
PT Freeport Indonesia (PTFI) is building a smelter or copper refining industry, which with this development will clearly be able to continue to support the efforts of the Government of the Republic of Indonesia (RI) in carrying out downstream operations and will also be able to continue to absorb more and more workers from the indigenous Papuan community. (OAP) itself.
Regarding this program, the Chairperson of the Indonesian People’s Representative Council (DPR RI), Puan Maharani admitted that the construction of several smelters which was being intensified by PTFI, was indeed a very positive step, not only in order to support and realize the downstream program carried out by only the government, but also able to further improve the economic conditions of the community around the development area.
Previously, the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, spoke out regarding PT Freeport Indonesia’s plans to build a new copper processing and refining facility or smelter in Bumi Cenderawasih.
He revealed that the construction of the smelter project by PTFI itself was aimed at being able to accommodate and process the existing copper concentrate production.
In other words, if there is additional copper concentrate production at the Freeport mine, the company will have to rework the smelter project in Papua.
Meanwhile, the Minister of Investment or Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, said that he had established intense communication with the President of the Republic of Indonesia (RI), Joko Widodo (Jokowi) regarding the strong desires of all people on Earth. Cenderawasih so that on their land there can be a smelter.
Moreover, various comprehensive steps have also been formulated by PT Freeport Indonesia together with the Ministry of State-Owned Enterprises (BUMN).
In the future, the steps that will be taken by the government itself are to increase Freeport’s copper production capacity from the Grasberg mine in Papua from 3 million tons per year to up to 3.8 million tons per year.
So, with the plan to increase copper production capacity, it is clear that the need to build a new smelter in Tanah Papua is an important step to take.
According to information from the Ministry of Investment or BKPM, it is known that the condition for PTFI to be able to extend its Special Mining Business Permit (IUPK) is the obligation to build various other smelters in Indonesia, including in the Papua region.
The reason is, with the construction of the new smelter, PT Freeport Indonesia itself must give 10 percent of the shares to the state-owned company through its state-owned mining holding company, namely Mind ID.
Therefore, it is clearly very important to increase PTFI’s contribution to development in the country.
Not only in terms of state revenues, but also in the sector of opening new jobs through the construction of several smelters in Indonesia.
In particular, the Chair of the Indonesian House of Representatives, Puan Maharani, also strongly encouraged PTFI to build smelters in other areas of Bumi Cenderawasih.
The reason is, with this development it will also be concrete proof of the sovereignty and self-respect of the people in Papua to be able to further improve and develop themselves by being given the opportunity to join the smelter project.
Apart from that, the creation of a smelter factory in Papua itself is also very much in line with the ideas of the Indonesian Government considering the plans of the Ministry of Investment or BKPM to build a refining and processing factory, such as in the Fakfak area of West Papua or in Timika, Central Papua.
PTFI’s contribution to the people of Bumi Cenderawasih must continue to be improved, one way is by building a smelter in the Papua region, because it will be able to help improve the economy of the local community.
So with this generalized development, it is hoped that in the future there will no longer be any inequality in the Eastern part of Indonesia, because they can also participate in further development.
Even though PT Freeport Indonesia continues to encourage the construction of a new smelter in Papua, Puan Maharani also continues to remind PTFI to be able to maintain environmental sustainability and also the health of the surrounding community by continuing to maintain the tailings waste disposal process.
According to him, this clearly must be a top priority in the intensified smelter development program.
The government continues to encourage PT Freeport Indonesia to continue to support the downstream program that is being intensified by President Jokowi.
Not only that, but PTFI is also continuously encouraged to continue to contribute to improving the economy and welfare of the community, especially for local indigenous Papuans (OAP).
All of these things will be possible with the construction of new smelters in various other areas in Bumi Cenderawasih.
Freeword
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