SEAToday.com, Jakarta - The Minister of State-Owned Enterprises Erick Thohir announced the commencement of sales of processed gold from PT Freeport Indonesia (PTFI) to PT Aneka Tambang (Antam) as part of a downstream synergy effort to boost the national economy.

The sale involves 125 kilograms of processed gold and is part of a five-year contract valued at $12.5 billion. This initiative is a key part of Mining Industry Indonesia (MIND ID)’s efforts to strengthen gold downstreaming and reduce imports.

Freeport’s refining facility has an annual production capacity of 50 tons of gold, with Antam set to absorb 30 tons.

"This collaboration brings significant benefits to the national economy. Downstreaming is a non-negotiable option," Erick stated as quoted on Antara in Jakarta on Friday.

Erick highlighted that this partnership aligns with President Prabowo Subianto’s strategic push for resource downstreaming and economic self-sufficiency. He expressed optimism that the move would strengthen Indonesia’s position in the global market and positively impact economic growth.

Signed in November, the Freeport-Antam deal is expected to secure a stable domestic gold supply and lessen Antam’s reliance on imported raw materials.

Antam President Director Nico Kanter emphasized that the partnership with Freeport is a step forward in the downstreaming of Indonesia’s gold industry. 

"With a stable domestic gold supply amid record-high gold prices, this partnership ensures the availability of Antam’s precious metal products for the public. We continue to optimize production to meet demand and enhance Antam’s performance," Nico stated as quoted on Antara.

Writer: Andi Raisa Malaha Thambas