Indonesia's Manufacturing Sector

[Indos]

Freeport Targets More Than $7 Billion in Annual State Revenue Contributions​

Antara
July 15, 2026 | 3:19 pm


In this undated photo, Freeport Indonesia CEO Tony Wenas holds a gold bar that will be sent to state-owned gold supplier Aneka Tambang (Antam). (Photo courtesy of Freeport Indonesia)



Jakarta. Mining giant Freeport Indonesia expects its annual contribution to the Indonesian government to exceed $7 billion once production at its Papua mining operations returns to full capacity and its copper smelter complex in Gresik, East Java, is operating at full scale, President Director Tony Wenas said on Tuesday.

Tony said the milestone will be driven by the full operation of the company's new copper smelter and precious metals refinery, allowing the entire copper value chain -- from concentrate to refined copper, gold, and silver -- to be processed domestically.

“With the operation of the smelter and precious metals refinery in Gresik, Indonesia can now process the entire copper value chain at home. This marks a major step forward for the country's mineral downstream industry,” Tony said.

The new smelter has the capacity to process 1.7 million metric tons of copper concentrate annually. Together with the expanded PT Smelting facility in Gresik, Freeport's total domestic refining capacity has reached around 3 million metric tons per year.

The adjacent precious metals refinery can process 6,000 metric tons of anode slime annually, producing refined gold, silver, platinum group metals, and other by-products. State-owned miner PT Aneka Tambang (Antam) is expected to purchase all of the refinery's gold output.


Recovery Underway
The smelter's operations were disrupted after a fire damaged its gas cleaning plant in October 2024. Although repairs were completed and production resumed in May 2025, operations were interrupted again after a landslide at the Grasberg Block Cave mine halted concentrate supplies.

Freeport is using the current shutdown to carry out comprehensive inspections and optimize the facility before concentrate shipments from Papua resume in September 2026.

“Our priority is to restore mining operations safely so concentrate supplies can return to normal. Once the upstream operation has recovered and the smelter is running at full capacity, the benefits of downstream processing will become much more significant through higher metal production, stronger domestic industry, and increased state revenue,” Tony said.

Mining operations are expected to run at about 65% of capacity this year as recovery work continues. Output is projected to rise to around 75% in the first half of 2027 before returning to full capacity by the end of that year.

Copper production is forecast to increase from about 800 million pounds in 2026 to 1.2 billion pounds in 2027 and 1.6 billion pounds in 2028. Gold production is expected to rise from 700,000 ounces this year to 1 million ounces next year and 1.4 million ounces in 2028.

As production recovers, Freeport expects its payments to the government -- including taxes, royalties, dividends, and other obligations -- to increase from about $2.6 billion in 2026 to $4.7 billion in 2027 before surpassing $7 billion annually once operations return to full capacity.

https://jakartaglobe.id/business/freeport-targets-more-than-7-billion-in-annual-state-revenue-contributions

 

[Indos]

Patimban Port Officially Launches International Container Shipping Services​

Kamis, 16 Jul 2026

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JAKARTA – The arrival of the Mediterranean Shipping Company (MSC) Aria III, a container vessel measuring more than 200 meters in length, at the container terminal of Patimban Port in Subang, West Java, marks the beginning of a new phase in the development of Indonesia's logistics ecosystem, further integrating the country into global trade networks.

The vessel, which arrived from Singapore before continuing its voyage to Laem Chabang (Thailand) and the major Chinese ports of Shekou, Ningbo, and Shanghai, represents the launch of Patimban Port's first international container shipping service.

According to the United Nations Conference on Trade and Development (UNCTAD), approximately 80% of global trade by volume is transported by sea, making port efficiency a key determinant of a country's international competitiveness. This underscores the strategic importance of Patimban Port to Indonesia's national logistics sector.

Against this backdrop, Yukki Nugrahawan Hanafi, Senior Vice President of the International Federation of Freight Forwarders Associations (FIATA) and Commissioner of PT Pelabuhan Patimban Internasional (PPI), said the introduction of MSC's regular container service represents more than the addition of a new shipping route—it marks the emergence of a new international logistics ecosystem that will strengthen Indonesia's competitiveness in global trade.

"As the world's largest archipelagic nation, Indonesia needs more than just large ports. We need an integrated port network capable of handling international trade efficiently while strengthening the resilience of our national supply chain amid geopolitical uncertainty and global disruptions," Yukki said.

He added that the successful launch of MSC's service is expected to encourage additional international shipping lines to operate from Patimban, expanding connections to Asia, the Middle East, Europe, and the Americas.

Patimban's container terminal currently occupies 10 hectares with an annual handling capacity of 250,000 twenty-foot equivalent units (TEUs). Terminal operator PT Patimban Global Gateway Terminal (PGT) plans to expand capacity to 1.65 million TEUs per year.

In the long term, Patimban is designed to handle 7.5 million TEUs annually at its container terminal and 600,000 vehicles per year at its automotive terminal, making it one of Indonesia's largest integrated port developments.

Capacity expansion is being implemented in phases. The container terminal began operations in January 2026 with one Mobile Harbour Crane (MHC), followed by the addition of two more MHCs in April 2026.

Further equipment deployment is scheduled throughout 2026. By September, the terminal is expected to receive nine Rubber-Tyred Gantry (RTG) cranes, three Ship-to-Shore (STS) cranes, four reach stackers, and 16 terminal trucks. By December, three STS cranes and nine Electric Rubber-Tyred Gantry (E-RTG) cranes are expected to be fully installed and operational.

According to Yukki, once all planned equipment is commissioned, the terminal's annual capacity is projected to increase to approximately 800,000 TEUs.

"The investment in new equipment will not only increase terminal capacity but also improve cargo handling productivity, reduce vessel turnaround time, and enhance schedule reliability for shipping services," he said.

In addition to its container terminal, Patimban has operated an automotive terminal since 2022 on a 22.4-hectare site with an annual capacity of 218,000 completely built-up (CBU) vehicles for both export and import activities.

Improving land connectivity remains a key priority in establishing Patimban as a world-class port. A 37-kilometer toll road linking the Cikopo–Palimanan Toll Road to Patimban is being constructed in phases through the end of 2026, with additional sections expected to become operational in 2027.

Once completed, the toll road is expected to reduce travel time from the East Karawang industrial area and the northern coastal region of West Java from approximately 1.5–2 hours to just 30–40 minutes.

Pelabuhan Patimban Resmi Layani Pengiriman Peti Kemas Internasional

Saat ini terminal Peti Kemas Patimban memiliki seluas 10 hektar dan mampu melayani 250.000 TEUs per tahun.

finance.detik.com

 

[Indos]

PT Alamtri Resources Indonesia Officially Begins Primary Aluminum Exports​

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PT Alamtri Resources Indonesia Tbk (ADRO) has officially commenced exports of primary aluminum to international markets.

In June 2026, the company completed its inaugural shipments to the United States and South Korea.

According to data from Export Genius, PT Kalimantan Aluminium Industry exported approximately 31,494 metric tonnes of aluminum to the United States and 3,569 metric tonnes to South Korea.

The aluminum smelter entered the first-phase commissioning stage at the end of last year.

The export milestone comes as the United States is seeking alternative sources of aluminum supply following disruptions to shipments from the Gulf region amid the conflict involving the United States, Israel, and Iran.

 

[Indos]

MIND ID, LEN, Krakatau Steel, and Perminas Collaborate to Build Indonesia's Critical Minerals Supply Chain​

Verda Nano Setiawan, CNBC Indonesia
15 July 2026 13:40



JAKARTA, CNBC Indonesia – State-owned mining holding company MIND ID, together with PT LEN Industri, PT Krakatau Steel, and PT Perminas, has formed a strategic partnership to develop Indonesia's national critical minerals supply chain. The collaboration aims to strengthen the availability of raw materials for strategic industries while increasing the value added of Indonesia's mineral resources.

The partnership agreement was signed during the Danantara's Advanced Materials Industry Dialogue: From Minerals to Manufacturing, held at Wisma Danantara Indonesia on July 9–10, 2026.

Danantara Indonesia CEO Rosan Roeslani said Indonesia must strengthen its position in the global industrial value chain by maximizing the potential of its abundant mineral resources. He encouraged all stakeholders to move beyond resource extraction toward higher-value industrial activities.

According to Rosan, Indonesia possesses substantial reserves of strategic minerals, including nickel, bauxite, copper, tin, and rare earth elements. These resources serve as the foundation for future technologies such as electric vehicle batteries, semiconductors, defense systems, and clean energy technologies.

"For decades, however, we have too often stopped at the extraction stage—exporting raw materials and then importing finished products at many times their original value," Rosan said.

The collaboration is intended to optimize the supply and offtake chain for critical minerals and advanced materials to meet the needs of Indonesia's strategic industries.

It is also expected to accelerate the development of a large-scale domestic advanced materials industry through joint technology development while supporting higher value-added economic growth across strategic industrial sectors.

The initiative extends beyond the development of Indonesia's electric vehicle industry and also targets the aerospace, maritime, basic industrial components, defense, and power sectors.

Danantara Indonesia Chief Technology Officer Sigit P. Santosa said the development of the advanced materials midstream industry should be viewed as a key component of Indonesia's broader industrial transformation.

According to Sigit, Indonesia's objective is to transition toward a technology-driven, high-value manufacturing economy while securing greater control over future strategic supply chains.

He emphasized that Indonesia must capitalize on growing regional demand, strengthen domestic technological capabilities, and compete globally to achieve sustainable economies of scale. As a result, the development of the advanced materials industry should be pursued through a more integrated strategy to enhance the competitiveness of Indonesia's manufacturing sector.

Sigit noted that Indonesia's competitive advantage lies not only in its mineral resources but also in its ability to transform those resources into an integrated advanced materials ecosystem supporting battery manufacturing, clean energy, defense, transportation, and other strategic technologies of the future.

"Nickel remains one of Indonesia's key advantages. However, our broader objective is to build a more diversified, higher value-added, and globally competitive industrial base," Sigit said.

MIND ID Hingga Perminas Kolaborasi Bangun Rantai Pasok Mineral Kritis

MIND ID bersama PT LEN Industri, PT Krakatau Steel, dan PT Perminas berkolaborasi membangun rantai pasok mineral kritis nasional

www.cnbcindonesia.com

 

[Indos]

PTDI Plans to Relocate Aircraft Manufacturing Operations to Kertajati​

Ilyas Fadilah - detikFinance
Rabu, 15 Jul 2026

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Kertajati, West Java


JAKARTA – The Indonesian government has begun preparations to develop Kertajati International Airport in Majalengka, West Java, into the country's national aerospace industrial hub. As part of the initiative, PT Dirgantara Indonesia (PTDI) and PT Bandar Udara Internasional Jawa Barat (BIJB) signed a Memorandum of Understanding (MoU) to support the development.

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) said the partnership forms part of the government's strategy to transform Kertajati into both an international airport and an Aerospace Industrial Zone.

"Today we witnessed the signing of an MoU between PTDI and BIJB as part of our shared commitment to develop the Kertajati area into one of Indonesia's aerospace industry hubs," AHY said during a press conference in Jakarta on Wednesday (July 15, 2026).

According to AHY, Kertajati offers an ideal location for PTDI's future expansion. Compared with Bandung, where urban development has become increasingly dense, Kertajati provides significantly larger land availability while offering strategic connectivity to industrial centers in Bekasi, Karawang, Purwakarta, Patimban Port, Cirebon, and Central Java.

Under the plan, PTDI's existing facilities in Bandung will gradually be transformed into the company's research and innovation center, while manufacturing and operational activities will eventually be relocated to Kertajati.

PTDI President Director Gita Amperiawan explained that the company has already been utilizing Kertajati Airport for flight testing of its Medium Altitude Long Endurance (MALE) unmanned aerial vehicle (UAV) and the N219 aircraft. He noted that Husein Sastranegara Airport in Bandung is no longer suitable for the company's long-term manufacturing requirements.

Besides being surrounded by increasingly dense urban development, Husein Sastranegara's 2,400-meter runway is considered insufficient for the maiden flights of newly developed aircraft, which typically require a runway of approximately 3 kilometers to meet safety standards.

"When an aircraft flies for the first time, a runway of around three kilometers is recommended for safety during takeoff. Bandung's runway, at approximately 2,400 meters, is no longer suitable for aircraft manufacturing activities," Gita said.

He also noted that PTDI supplies aircraft components to global aerospace manufacturers including Airbus and Boeing. Currently, those components must first be transported by land to Jakarta before being exported overseas. With operations at Kertajati, shipments will be able to depart directly from the airport.

"After production, we currently have to transport our components to Jakarta before they can be flown to Airbus and Boeing. These are large containers. Once we operate from Kertajati, we will be able to ship them directly to our international customers," Gita explained.

PTDI plans to begin utilizing Kertajati in August 2026. The immediate priority will be accelerating aircraft flight testing to ensure the company achieves its October 2026 fleet readiness target for aircraft deliveries to the Indonesian Armed Forces (TNI).



Initially, PTDI will relocate flight testing activities for aircraft undergoing fleet readiness programs, followed by testing of the MALE UAV and the N219, including aircraft scheduled for delivery to the Indonesian Army later this year.

The next phase of development will include the construction of a Maintenance, Repair and Overhaul (MRO) facility at Kertajati. PTDI has allocated approximately 150–200 hectares for future expansion covering four business portfolios: aircraft manufacturing, MRO services, aerostructure production, and engineering services, including drone development.

In the longer term, PTDI plans to relocate its aircraft production lines to Kertajati. The N219 is expected to become the first aircraft manufactured at the new site to meet growing demand from both the Indonesian Armed Forces and the commercial aviation sector.

"The third phase will be relocating production to Kertajati. The first production line to move will most likely be the N219. Its production equipment is relatively new, and with support from the government, we expect demand to increase significantly, both from the military and commercial aviation," Gita said.

Pabrik Pesawat PTDI Mau Dipindah ke Kertajati

Pemerintah mulai menyiapkan Bandara Kertajati di Majalengka, Jawa Barat, sebagai kawasan industri kedirgantaraan nasional.

finance.detik.com