INDONESIA Trends and Developments Contributed by: Alvin Suryohadiprojo, KARNA
• the process and/or refining facilities are under construction; and/or • the holder of mining licences has entered into a co-operation with other holders of mining licences specifically for conducting process - ing and/or refining activities, or other parties carrying out processing and/or refining activi - ties. Based on the Ministry of Energy and Mineral Resources’ data, a total of 190 smelter pro - jects in Indonesia have been approved as of 2024. Fifty-four are already operational, 120 are under construction, and 16 are in the planning stage. Among the biggest smelter projects are the copper smelter and precious metal refining facility owned by PT Amman Mineral Interna - sional Tbk (IDX: AMMN) located in Sumbawa Barat, West Nusa Tenggara Province, and the copper smelter owned by PT Freeport Indonesia located in Gresik, East Java Province. AMMN’s smelter was just inaugurated in September 2024 by President Joko Widodo. It aims to have an input capacity of up to 900 kilotons per annum of concentrates from AMMN’s mining and pro - duce 222 kilotons per annum of copper cathode with 99.99% purity, 830 kilotons per annum of sulphuric acid with 98.5% purity, 18 tons per annum of refined gold with 99.99% purity, 55 tons per annum of refined silver with 99.95% purity and 77 tons per annum of selenium with 99.9% purity. Meanwhile, PT Freeport Indone - sia’s smelter was built with IDR56 trillion invest - ment. It aims to refine 1,700 kilotons per annum of copper from PT Freeport Indonesia’s mining in Papua and produce 900 kilotons per annum of copper cathode, 50 tons per annum of refined gold and 210 tons per annum of refined silver. With the new administration’s intention to con - tinue the downstreaming policy, investments in smelters and processing industries are expected
to grow further. At the time this article was writ - ten, the bill for the revision of the Mining Law had been approved by the House of Representa - tives and was awaiting enactment. One of the key aspects of the bill is the obligation of the holder of mining licences to prioritise domestic demand before exporting. Danantara In order to achieve an 8% annual GDP growth target, the new administration sees the need to transform the management of national wealth, including state-owned enterprises (SOEs). In February 2025, President Prabowo Subianto launched a new agency called the Investment Management Agency of Daya Anagata Nusan - tara, known as “Danantara” . It is designed to be a sovereign wealth fund and investment man - agement body as well as one of the largest finan - cial instruments in South-East Asia, with initial capital of IDR1,000 trillion. Through Danantara, the Government of Indonesia aims to optimise the management of SOEs, attract foreign capital and drive national economic growth. The implementation of Danantara is manifested through major revision of the SOEs Law under Law No. 1 of 2025 ( “SOEs Law” ). Pursuant to the new SOEs Law, the Ministry of SOEs, which has traditionally functioned as the holding entity rep - resenting the Government of Indonesia in over - seeing SOEs, will now serve solely as a regula - tor. Meanwhile, Danantara has been granted the authority to directly enhance and optimise SOEs’ investments and operations. Furthermore, Dan - antara has been mandated to establish two types of holding companies: • Investment Holding Company: responsible for managing dividends and/or optimising SOEs’ assets; and
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