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Research notes Bahlil’s role in success of metal refinery development in Gresik
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T
he Reform Initiative, in collaboration with the dean of the economic faculty of Universitas Airlangga, Unggul Heriqbaldi, highlights the role of Energy and Mineral Resources Minister Bahlil Lahadalia in the success of the construction of the precious metal refinery (PMR) in Gresik, Central Java.
The project was inaugurated by President Prabowo Subianto on Mar. 17, 2025. Two years since the laying of the first stone in October 2021 by the 7th President of the Republic of Indonesia, Joko “Jokowi” Widodo.
Bahlil previously revealed that investment in the gold smelter of PT Freeport Indonesia (PTFI) in Gresik reached Rp 10 trillion. The world's largest single-line copper smelter is capable of refining copper concentrate with an input capacity of 1.7 million tonnes and producing copper cathodes of up to 600,000 to 700,000 tonnes per year.
Unggul added that the construction of the PMR in Gresik is the impact of downstreaming that Bahlil has carried out since he was still serving as investment minister and head of the investment coordinating board (BKPM). The success of this downstreaming cannot be separated from Bahlil's strategy in integrating technology, improving human resources and ownership of resources owned by Indonesia.
"His role is very strategic not only in ensuring that this downstream process creates high economic added value, but also in ensuring that downstream efforts have a significant impact in the context of technological application and innovation in the sectors being developed," Unggul said.
Unggul also said that the presence of PMR in Gresik opens up a great opportunity for Indonesia in the export of precious metals, expected to increase economic added value and to strengthen Indonesia's position in the global market. The existence of a special economic zone and a strategic export port facilitates the distribution of raw material supplies for other industries such as jewelry, electronics and automotive industries.
"The PMR in Gresik will allow Indonesia to export precious metals in the form of high-quality processed products, not just as raw materials. When compared to raw gold exports, domestic refining can increase added value by 30-40 percent depending on the purity level and the final product produced," Unggul said.
Unggul added that the Gresik PMR can reduce Indonesia’s dependence on raw material exports and strengthen the competitiveness of mineral-based downstream industries at the global level. The Gresik PMR is expected to create employment opportunities for 2,000 people.
