Board Member IV of BPK Makes Work Visit to Smelter Facilities of PT. Smelting and PT. Freeport Indonesia
GRESIK, BPK Public Relations – Board Member IV of the Audit Board of the Republic of Indonesia (BPK), Isma Yatun, made work visit to supervise smelter and refinery development of PT. Smelting and PT. Freeport Indonesia (PTFI) in Gresik Regency, on Friday (15/10/2021).
In her remarks, Board Member IV of BPK says Laws Number 4 of 2009 and its amendment to Law Number 3 of 2020 on Mineral and Coal Mining states that mining license holder has an obligation to improve mineral value added by conducting metallic mineral smelter and refinery processes in the country in June 2023 at the latest.
In addition, Presidential Regulation Number 18 of 2020 on The 2020-2024 National Medium-Term Development Plan (RPJMN), smelter development is one of strategic priority projects. The RPJMN includes strategic priority projects in which one of them are development of 9 (nine) industrial areas outside Java and 31 (thirty one) smelters.
"The metallic mineral smelter and refinery are expected to bring multiplier effect in multi-sectors, state revenue sector for an instance," Board Member conveyed.
Board Member says in accordance with data provided by Ministry of Energy and Mineral Resources, 19 (nineteen) smelters, out of 53 (fifty three) target smelters by 2024, have been built in 1st semester of 2021.
Board Member informs that Indonesia is one of seven countries having huge amount of copper resources in the world. Having such a potential, the resources should be used to generate the most benefits and prosperity for the people by developing the highest value added to national economy.
"One way to bring the highest value added is by developing copper smelter and refinery facilities in the country, PTFI is one of industrial actors in copper mining to develop the facilities," Board member said.
Board Member elaborates that by holding Special Mining Business License for Production Operation (IUPK OP) in 2018, PTFI is obliged to develop mineral smelter and refinery process facilities on 21 December 2023 at the latest.
PT. Surveyor Indonesia, an independent verifier, reports smelter and refinery facilities being developed by PTFI reached 5.86% as of July 2020, Board Member says. The physical development has been in the phase of project preparation, a ground improvement work.
"Having such low progress of smelter and refinery development, on time completion of development is potentially hindered. Therefore, PTFI needs to work quickly to bring the smelter and refinery development on track as of set schedule," Board Member explained.
During her work visit, Board Member made in-person supervision of smelter and refinery development by PTFI located in Special Economic Zones (SEZs) of Gresik.
Board Member checked progress of smelter and refinery development processes in SEZs of Gresik to ensure that the project would run smoothly.
Closing her remarks, Board Member conveys some recommendations made following the audit of Contracts of Work (Kontrak Karya) between PTFI and Ministry of Energy and Mineral Resources as well as Ministry of Environment and Forestry for period of 2013-2015 needs more attention.
"BPK recommends Minister of Energy and Mineral Resources as well as Minister of Environment and Forestry to coordinate supervision of environmental management made by PTFI for its mining operations, on the grounds of this, BPK encourages broad coordination with, not only among these ministries but also among PTFI and these ministries," Board Member closed her remarks.
Along with Board Member attending the work visit in limited physical attendance included Director General of Audit IV in BPK, Syamsudin, and Director General of Mineral and Coal in Ministry Energy and Mineral Resources, Ridwan Djamaludin, Executive Vice President and Director of PT. Smelting, Tatsuya Inoue, Vice President of Government Relation & Smelter Technical Support of PTFI, Harry Pancasakti, and some high-level officials both in BPK and in Ministry of Energy and Mineral Resources.