Jakarta, IO – President Joko Widodo attended the groundbreaking ceremony for a copper foil factory in Gresik Special Economic Zone (SEZ), East Java. The factory, built with US$860 million from an investment by PT Hailiang Nova Material Indonesia, is set to be the largest in Southeast Asia.
“I really appreciate the construction of the copper foil factory by PT Hailiang Group from China,” Jokowi said, Wednesday (21/6).
He explained that the construction of the factory was part of the downstreaming of natural resource industry in the country. Indonesia, he said, will reap many benefits ranging from royalties, corporate taxes and export duties and most importantly it can create many jobs.
In addition, Jokowi hopes that Indonesia can compete on an international level. This is because the demand for copper products will continue to increase along with the wider use of electric cars.
“If we can integrate the copper, nickel, tin, bauxite that we have, not for export of raw materials but to be processed in our own country, this will take Indonesia from a developing country to a developed one in the next 10-15 years,” Jokowi said.
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The factory is expected to start operation in May 2024, coinciding with the construction of PT Freeport’s copper smelter. If achieved, this will be the fastest record for the construction of a copper project in the world.
In line with this, Jokowi ordered all related parties to provide necessary support including in licensing and other incentives. (bp)