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.

 

In addition to gold, Amman’s smelter will also produce 220,000 tons of copper cathodes, 801,000 tons of sulfuric acid, 55 tons of silver, and 77 tons of selenium.

Beyond increasing gold output, these refineries play a crucial role in Indonesia’s ambition to establish a more self-sufficient mining industry. By processing minerals domestically, the country aims to retain greater economic benefits, create jobs, and reduce vulnerability to fluctuations in global commodity prices.

The mining sector has welcomed the initiative, but industry leaders stress the need for long-term policy stability.

 

Executive Director of the Indonesian Mining Association (IMA), Hendra Sinadia, noted that Freeport and Amman hold substantial gold reserves, ensuring sustainability. However, he cautioned that government support and regulatory clarity will be key to maintaining investment confidence.

The launch of these PMRs represents a broader shift in Indonesia’s resource management strategy. The government continues to push for greater industrialization across various sectors, ensuring that natural resources are processed locally rather than exported as raw materials. This approach aligns with President Prabowo’s vision of strengthening Indonesia’s industrial base and reducing dependency on foreign processing.

 

With these two refineries now operational, Indonesia is poised to solidify its position as a major player in the global gold market. The success of these projects will depend on consistent government policies, stable business conditions, and continued investment in downstream industries, ensuring long-term benefits for the national economy. (Uki Ruknuddin)

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