Indonesia Mining Industry

[Indos]

Freeport Projects Payments to Indonesian Government to Reach Rp40 Trillion​

Ilyas Fadilah - detikFinance
Selasa, 15 Sep 2026 22:25 WIB





Jakarta – PT Freeport Indonesia (PTFI) projects that its payments to the Indonesian government could reach US$2.6 billion, or around Rp40 trillion, this year. The payments comprise taxes, dividends, Non-Tax State Revenue (PNBP), and other levies.

PTFI President Director Tony Wenas said the projection assumes a copper price of US$4.75 per pound and a gold price of US$4,000 per ounce. Meanwhile, current copper prices were said to be around US$6.50 per pound, while gold was trading at approximately US$4,500 per ounce.

“As I showed earlier, for the 2026 projection, planned government revenue is US$2.6 billion, or around Rp40 trillion, consisting of taxes, dividends, and other PNBP. This is based on an assumed copper price of US$4.75 per pound and gold at US$4,000 per ounce,” Tony said during a meeting with Commission XII of the House of Representatives (DPR) at the DPR Building in Jakarta on Tuesday (September 15, 2026).

Government revenue from Freeport is projected to increase significantly to US$4.6 billion in 2027. The increase is expected to coincide with higher production as mining activities at the Grasberg Block Cave (GBC) recover.

Freeport’s gold production is projected to increase from around 700,000 ounces, or 21 tons, in 2026 to 1 million ounces, or approximately 31 tons, in 2027. Meanwhile, copper production is expected to rise from 800 million pounds to 1.3 billion pounds over the same period.

“If we compare this with the plan for 2027, there is a significant increase in government revenue to US$4.6 billion. This will be in line with the increase in production that I explained on the previous slide,” Tony said.

Government revenue generated from Freeport’s operations is expected to surge again beginning in 2028. Tony estimated that it could reach US$8 billion, or more than Rp120 trillion annually, in 2028, 2029, and subsequent years.

“In 2028, 2029, and beyond, government revenue is estimated to reach US$8 billion, or more than Rp120 trillion per year, in the form of taxes, PNBP, dividends, and other levies,” Tony said.

Freeport Proyeksi Setoran ke Negara Tembus Rp 40 Triliun

PT Freeport Indonesia (PTFI) memproyeksikan setoran ke negara tahun ini bisa mencapai US$ 2,6 miliar atau sekitar Rp 40 triliun.

finance.detik.com

 

[Indos]

Freeport Develops New Mine, Investment Could Reach Rp72 Trillion (US$4.04 Billion)​

Firda Dwi Muliawati, CNBC Indonesia
18 August 2026



Mimika, CNBC Indonesia – PT Freeport Indonesia (PTFI) is developing a new underground mining block, Kucing Liar, with total investment in the project projected to reach Rp72 trillion (approximately US$4.04 billion).

PTFI President Director Tony Wenas explained that development work on the new mining area is continuing, in line with the company’s long-term operational targets.

Tony emphasized that the major investment in the Kucing Liar Block is part of the company’s long-term sustainability program in Indonesia.

“The development of the Kucing Liar underground mine, which will become one of the company’s main sources of production in the future, continues to progress. Investment in this underground mine has already reached Rp25 trillion (approximately US$1.40 billion) and will eventually total Rp72 trillion (approximately US$4.04 billion),” he said during a ceremony commemorating Indonesia’s 81st Independence Day in Tembagapura, Mimika Regency, Central Papua, on Monday (August 17, 2026).

The Kucing Liar Block is targeted to enter the production phase in 2029, with projected production capacity of 130,000 tons of ore per day. The mine is designed to support the company’s overall production capacity so that it can maintain its target of 240,000 tons of ore per day.

“This mine is projected to produce more than 7 billion pounds of copper and 6 million ounces of gold over its operating life. This investment demonstrates that, even during a period of recovery, Freeport Indonesia continues to move forward,” he added.

The Kucing Liar Block is considered important for offsetting the projected natural decline in production from the Grasberg Block Cave (GBC) mine in the future.

If the company also secures certainty over an extension of its Special Mining Business Permit (IUPK) beyond 2041, it plans to conduct further exploration to identify potential new reserves beyond the existing mining blocks.

“This will provide crucial support because GBC will eventually become depleted and its production will decline, allowing us to maintain stable production at around 240,000 tons of ore per day,” he said.

According to Freeport-McMoRan’s (FCX) first-half 2026 report, as of June 30, 2026, PTFI had invested approximately US$1.4 billion, or around Rp24.9 trillion, in developing the Kucing Liar mining project.

PTFI began developing the new underground mine, located in the Grasberg mineral district in Central Papua, in 2022. The mine was initially targeted to begin operations in 2028, but the schedule was pushed back to 2029 following a wet-material landslide at the Grasberg Block Cave (GBC) mine in September 2025.

“Since 2022, PTFI has been carrying out long-term mine development activities at the Kucing Liar deposit, located in the Grasberg mineral district,” Freeport-McMoRan wrote in its first-half 2026 performance report.

According to the FCX report, production from the Kucing Liar mine is expected to begin gradually ramping up around 2030, eventually reaching its designed capacity of approximately 130,000 metric tons of ore per day.

Once fully operational, Kucing Liar is expected to produce an average of 750 million pounds of copper and approximately 735,000 ounces of gold per year. The project is considered one of the company’s key strategies for maintaining the long-term sustainability of production in the Grasberg mining district.

USD conversions for Rp25 trillion and Rp72 trillion are approximate and use an exchange rate of about Rp17,825/US$1. The article’s Rp24.9 trillion/US$1.4 billion figure is retained as originally reported.

Freeport Kembangkan Tambang Baru, Investasinya Bisa Capai Rp72 Triliun

PT Freeport Indonesia tengah mengembangan tambang baru dan diperkirakan akan menelan investasi hingga Rp 72 triliun.

www.cnbcindonesia.com

 

[Indos]

Indonesia Breaks Ground on Integrated Copper, Gold Downstream Project in E. Java​

Anis Firmansah
April 29, 2026

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Groundbreaking ceremony for the integrated copper and gold downstream project at the JIIPE Special Economic Zone in Gresik, East Java, on April 29, 2026. State-owned mining holding MIND ID launched the project at the Java Integrated Industrial and Ports Estate (JIIPE). (Beritasatu/Anis Firmansah)


Gresik, East Java. Indonesia has begun construction of an integrated copper and gold downstream project in East Java, as Southeast Asia's largest economy pushes to process more of its mineral resources domestically and strengthen strategic industries.

State-owned mining holding MIND ID on Wednesday launched the project at the Java Integrated Industrial and Ports Estate (JIIPE) special economic zone in Gresik. The development is part of a broader rollout of 13 downstream projects under the government’s second-phase industrialization program.

The facility will process copper concentrate from gold miner Freeport Indonesia into higher-value products, including copper cathodes, precious metals, and components used in ammunition and defense systems.

Under the plan, copper cathodes produced at Freeport’s Gresik smelter will be further processed into brass mill products and brass cups by state-owned defense manufacturer Pindad, part of the DEFEND ID holding. The facility is designed to produce up to 10,000 tons annually.

Meanwhile, anode slime generated from the smelting process will be refined by state-owned gold miner Aneka Tambang, or Antam, into gold bullion. The precious metals refinery is projected to produce up to 30 tons of gold per year, equivalent to around 5 million retail units.

Tedy Badrujaman, director of downstream strategy and mineral ecosystem at MIND ID, said the project reflects Indonesia’s broader ambition to move up the value chain.

“This is a milestone that underscores Indonesia’s commitment to becoming a sovereign industrial nation,” Tedy said. “Downstream industry is not just about exporting raw materials but about creating high-value products domestically.”

The initiative is expected to strengthen the country’s industrial base from upstream processing to finished products, particularly in strategic sectors such as defense manufacturing.

The project is also seen as a major job creator. MIND ID estimates the copper downstream segment could employ up to 7,000 workers, while the gold refining facility is expected to add around 500 jobs.

Local authorities have voiced support for the development, citing its potential to boost regional economic growth and attract further investment.

East Java Vice Governor Emil Dardak said the JIIPE special economic zone is being positioned as a competitive industrial hub capable of drawing global players.

“We want JIIPE to have strong advantages, supported by infrastructure and a complete industrial ecosystem,” Emil said. “The presence of Freeport’s smelter has already created important raw materials like cathodes and anodes, which in turn attract downstream industries such as Pindad and Antam.”

The groundbreaking ceremony in Gresik was part of a nationwide launch led virtually by President Prabowo Subianto from Central Java.

Indonesia has made downstream industrialization a cornerstone of its economic policy, particularly in the mining sector, where export restrictions on raw materials have encouraged investment in smelting and processing facilities. By integrating copper and gold processing within a single industrial zone, the government aims to maximize value creation, reduce reliance on raw exports, and build a more resilient manufacturing base tied to its natural resources.

Indonesia Breaks Ground on Integrated Copper, Gold Downstream Project in E. Java

Indonesia launched a copper-gold processing hub in Gresik to boost value-added output, cut raw exports, and strengthen its industrial base.

jakartaglobe.id

 

[Indos]

Miners are now industrializing as well

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Indika Energy



Freeport Indonesia




Amman Mineral

 

[Indos]

 

[Indos]

Nickel Exports Surge 50.12%, Supporting Indonesia’s Downstream Industrialization​

Lili Handayani
6 Oktober 2026



Harita Nickel, one of Indonesian local companies in Nickel Processing Industry


The processing industry has become not only the largest contributor to exports, but also a key driver of Indonesia’s foreign trade growth.

NIKEL.CO.ID, JAKARTA – Indonesia’s exports of nickel and nickel products recorded significant growth during January–August 2026. Exports under HS Code 75 increased 50.12% compared with the same period a year earlier on a cumulative-to-cumulative (CtC) basis.

The increase in nickel exports is a strong indication of the continued development of Indonesia’s domestic mineral-processing industry. The growth also came amid strong performance from the broader processing industry, which remains the main pillar of the country’s exports.

According to the Ministry of Trade, Indonesia’s total exports during January–August 2026 reached US$193.64 billion, up 4.74% from the same period in 2025. Non-oil and gas exports reached US$185.63 billion, rising 5.48% year-on-year, while oil and gas exports stood at US$8.01 billion, down 9.98%.

By sector, the processing industry was the main driver of national export growth. Exports from the sector reached US$159.55 billion, accounting for approximately 82.40% of Indonesia’s total exports.

Processing-industry exports grew 7.87% during January–August 2026. In addition to nickel and nickel products, which increased 50.12%, exports of aluminum and aluminum products (HS 76) surged 102.25%, while copper and copper products (HS 74) rose 47.13%.

Trade Minister Budi Santoso said the figures showed that Indonesia’s downstream industrialization policy had helped shift the country’s export structure toward higher-value-added products.

“Indonesia’s export achievements are the positive result of downstream industrialization. This policy demonstrates that Indonesia’s economic transformation toward higher-value-added products has been successful and is further strengthening the country’s export structure in the global market,” Budi said in Jakarta on Tuesday, October 6, 2026.

According to Budi, the processing industry has become not only Indonesia’s largest export contributor but also a key driver of the country’s foreign trade growth.

“The success of downstream industrialization has now proven to be the main pillar and growth engine of national exports. With a contribution of 82.40% of total exports and export value reaching US$159.55 billion during January–August 2026, the processing industry demonstrates that Indonesian-made manufactured products are becoming increasingly established, competitive, and important in international markets,” he said.

Nickel Strengthens the Processing Industry’s Export Structure​

The 50.12% growth in nickel exports stands out as an indication of the increasing role of processed nickel products in Indonesia’s trade structure. The performance is in line with the government’s policy of encouraging domestic mineral processing before products are exported.

As a result, Indonesia’s exports are becoming less dependent on raw commodities and increasingly oriented toward products with higher added value.

Nickel export growth is also part of a broader positive trend among processed mineral commodities. In addition to nickel, aluminum exports more than doubled, while copper exports grew by nearly 50%. These developments demonstrate that minerals are playing an increasingly important role in the expansion of Indonesia’s processing industry and the growth of the country’s export value.

Alongside stronger exports of processed industrial products, Indonesia also recorded a substantial trade surplus. In August 2026, the country posted a US$3.55 billion trade surplus, a sharp increase from just US$0.12 billion in July 2026.

The August surplus was primarily supported by the non-oil and gas sector, which recorded a US$6.09 billion surplus, while the oil and gas sector posted a US$2.54 billion deficit.

Cumulatively, Indonesia’s trade surplus for January–August 2026 reached US$7.25 billion, comprising a non-oil and gas surplus of US$28.54 billion and an oil and gas deficit of US$21.29 billion.

In August alone, Indonesia’s exports reached US$26.61 billion, up 1.51% from July 2026 and 6.72% from August 2025. The performance was also supported by processing-industry exports, which increased 2.46% month-on-month.

Downstream Industrialization Supports Export Growth​

The increase in exports of nickel and other processed minerals demonstrates the increasingly strategic role of downstream industrialization in Indonesia’s trade. With processing-industry exports reaching US$159.55 billion during the first eight months of 2026, manufactured products and processed minerals are playing an increasingly important role in strengthening the country’s export structure.

For the nickel industry, the 50.12% increase in exports signals that the development of domestic processing industries is beginning to make a tangible contribution to Indonesia’s trade performance. It also reinforces nickel’s position as a strategic commodity in Indonesia’s economic transformation from an exporter of raw materials into a producer of higher-value-added products.

At the same time, industrial demand for raw materials and capital goods remains high. Cumulative imports during January–August 2026 reached US$186.39 billion, an increase of 19.84% compared with the same period a year earlier.

Imports of raw and auxiliary materials increased 20.67%, while capital-goods imports rose 18.82%, reflecting continued expansion in manufacturing activity.

For Indonesia’s downstream nickel industry, these developments form part of a broader industrial ecosystem encompassing mineral processing, demand for raw materials, construction of production facilities, and the development of higher-value-added downstream products.

(Li Han)

Ekspor Nikel Melonjak 50,12%, Jadi Penopang Hilirisasi Indonesia

Industri pengolahan kini tidak hanya menjadi penyumbang terbesar ekspor, tetapi juga menjadi motor pertumbuhan perdagangan luar negeri Indonesia. NIKEL.CO.ID, JAKARTA – Kinerja ekspor nikel dan barang dari nikel Indonesia mencatatkan pertumbuhan signifikan sepanjang Januari–Agustus 2026...

nikel.co.id

 

[Indos]

Inalum Reveals Progress on SGAR Phase II Project, Targets FID Completion in Coming Weeks​

Reporter: Arif Ferdianto | Editor: Tri Sulistiowati
06 Oktober 2026

Reporter: Arif Ferdianto | Editor: Tri Sulistiowati





KONTAN.CO.ID – JAKARTA – PT Indonesia Asahan Aluminium (Inalum) has provided an update on the development of its Smelter Grade Alumina Refinery (SGAR) Phase II project in Mempawah. The state-owned aluminum company is targeting completion of the project’s Final Investment Decision (FID) in the near future.

Inalum Director of Corporate Strategy, Business Development, and Commercial Arif Haendra said the bankable feasibility study for the SGAR Phase II project has now been officially completed.

“Inalum will proceed with the construction of SGAR Phase II. The bankable feasibility study has now been completed, and we expect to move toward the FID in the coming weeks,” he said at the BIG Downstream Insight 2026 event in Jakarta on Tuesday, October 6, 2026.


Illustration: PT Borneo Alumina Indonesia – Processing bauxite ore into alumina powder (KONTAN/Baihaki)

Arif said investment in SGAR Phase II would be carried out alongside the development of a smelter to ensure that the alumina produced by the refinery is fully absorbed. All alumina output from the refinery will eventually be used to meet the operational requirements of Inalum’s own smelters in Mempawah and Kuala Tanjung.

“So, the 2 million tons of alumina from PT Borneo Alumina Indonesia, which is owned by Inalum and Antam, will all be used internally. Around 1.2 million tons will be used by the smelter in Mempawah, while 550,000 tons plus the remaining volume will be used in Kuala Tanjung,” he said.

To carry out the capacity expansion, Arif said substantial investment would be required for both the aluminum smelter and the alumina refinery.

Investment in the smelter is estimated at US$2.7 billion, or around Rp48 trillion, based on the current exchange rate of Rp17,900 per US dollar. Meanwhile, investment in SGAR Phase II is estimated at Rp15 trillion to Rp18 trillion.

“That means the total is already more than Rp60 trillion. This is not a small amount,” he said.

As previously reported, construction of the SGAR Phase II facility is scheduled to begin in 2026, with the project targeting its commercial operation date (COD) in late 2028 or early 2029.

SGAR Phase II is designed to have an alumina production capacity of 1 million to 2 million tons. Assuming an additional capacity of 1 million tons, Inalum would be able to secure a total alumina supply of 2 million tons from SGAR Phases I and II.

Inalum Beberkan Progres Proyek SGAR Fase II, FID Ditargetkan Tuntas Dalam Waktu Dekat

Indonesia Asahan Aluminium (Inalum) melaporkan perkembangan proyek Smelter Grade Alumina Refinery (SGAR) Fase II di Mempawah.

industri.kontan.co.id

 

[Indos]

Nickel Production Projected to Reach 3.5 Million Tons and Gold 130 Tons in 2027​

Reporter: Arif Ferdianto | Editor: Khomarul Hidayat
06 Oktober 2026





KONTAN.CO.ID – JAKARTA – The Indonesia Mining Association (IMA) projects that production of several of Indonesia’s key mineral commodities will increase next year.

IMA Chairman Rahmat Makassau said the increase in production volumes would be supported by the success of the downstream industrialization program and mineral-processing facilities beginning to operate at optimal capacity.

According to Rahmat, the mineral and coal mining sector has been able to support the downstream industrialization agenda by providing a sustainable supply of raw materials for downstream industries.

The success of these capacity expansions can be seen in rising production volumes of commodities including nickel, copper, and gold, which have continued to increase gradually.

Rahmat said total nickel production is projected to reach millions of tons as processing capacity for Nickel Pig Iron (NPI) and Mixed Hydroxide Precipitate (MHP) continues to increase.

“In nickel, we are already producing 2.5 million tons of NPI, while MHP production could reach 1 million tons next year, bringing the total from nickel to around 3.5 million tons. Meanwhile, in 2027, copper production could reach around 1.1 million tons, or perhaps 1 million tons of cathode copper,” he said at the BIG Downstream Insight 2026 event in Jakarta on Tuesday, October 6, 2026.

Rahmat explained that copper production is expected to increase to around 1.2 million–1.3 million tons once all smelters are operating at maximum capacity.

Meanwhile, Indonesia’s gold production is also projected to increase and stabilize at around 130–140 tons per year.

“What I want to emphasize is that downstream industrialization in the mining sector has progressed well. As has already been mentioned, our main task going forward is to develop downstream industries that can utilize the products generated by the mining downstreamization program,” he explained.

Rahmat also highlighted the relatively low domestic absorption of downstream products. For copper, domestic absorption currently stands at only around 20%–25%. Most processed mineral products, including stainless steel and other nickel products, continue to be predominantly exported to global markets.

“In our view, the main challenge across the commodity supply chain, from upstream operations all the way to downstream industries, is how we can develop it further so that domestic absorption is not limited to just 20%, but can be increased as much as possible,” he added.

Produksi Nikel Diprediksi Capai 3,5 Juta Ton dan Emas 130 Ton pada 2027

Indonesia Mining Association (IMA) memproyeksikan produksi sejumlah komoditas mineral utama nasional akan mengalami peningkatan

industri.kontan.co.id