JAKARTA, RAKYAT NEWS – Indonesia is set to boost its domestic gold production with the launch of two new precious metal refineries (PMRs) owned by PT Freeport Indonesia (PTFI) and PT Amman Mineral Nusa Tenggara (AMMN).

 

These facilities are expected to elevate national gold output to 70 tons per year, strengthening Indonesia’s foothold in the global gold industry.

The newly inaugurated Freeport refinery in Gresik, East Java, has a production capacity of 50-60 tons of gold annually. Meanwhile, Amman’s refinery in West Sumbawa, West Nusa Tenggara (NTB), can process 18-20 tons of gold per year. Both facilities mark a significant step in Indonesia’s push for downstream industrialization, adding value to its mining sector while reducing reliance on raw mineral exports.

 

 

Executive Director of the Center for Energy and Mining Law Studies, Bisman Bakhtiar, emphasized the strategic importance of these refineries. “This is a game-changer for Indonesia’s mining industry. By processing gold domestically, we increase value-added benefits and strengthen our position in the international market,” he said

 

Indonesia has banned raw mineral exports for several years, compelling mining companies to refine their output domestically. However, the government recently granted Freeport Indonesia a temporary export permit for its copper concentrate due to force majeure, following a fire at its smelter.

 

The new PMRs are expected to help offset such dependencies and further bolster domestic processing.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, highlighted the production potential of these refineries. The Freeport refinery processes 3 million tons of copper concentrate annually, while Amman’s facility refines 900,000 tons of concentrate.