Indonesia Inaugurates World’s Largest Gold Refinery, Aims for Higher Value Exports

JAKARTA, investortrust.id – President Prabowo Subianto has inaugurated PT Freeport Indonesia’s (PTFI) new precious metal refinery (PMR) in Gresik, East Java, calling it a milestone in Indonesia’s strategy to move beyond raw material exports and strengthen its downstream industry. The refinery, he said, is the largest integrated gold purification facility in the world.

“This is a major achievement for our nation. We don’t want to merely export raw materials—we want to produce and sell high-value finished goods,” Prabowo said during the inauguration on Monday, March 17, 2025.

World’s Largest Gold Refinery

Prabowo emphasized that the Gresik facility is the world’s biggest in terms of fully integrating upstream mining operations with downstream refining within a single entity. The plant is designed to process ore concentrate into high-purity precious metals, including gold, silver, and cobalt.

“I have been informed that this refinery, especially for gold, is the largest of its kind in the world, integrating upstream to downstream processes under one roof. This is something we should truly appreciate,” he stated.

The event was attended by Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of State-Owned Enterprises Erick Thohir, PT Freeport Indonesia President Director Tony Wenas, and East Java Governor Khofifah Indar Parawansa.

Strengthening Indonesia’s Industrial Value Chain

The new refinery aligns with Indonesia’s broader push to enhance its industrial value chain. The country, which holds the world’s sixth-largest gold reserves, is aiming to maximize its resource wealth by refining raw materials domestically instead of exporting them in unprocessed form.

“This is the vision we are pursuing—not just selling raw commodities, but creating finished products with significant added value,” Prabowo said.

However, he also warned that illegal mining and gold smuggling remain a challenge, leading to revenue losses for the state. He vowed to crack down on these illicit activities.

“We will take firm action. Smuggling out of Indonesia hurts our national revenue, while smuggled imports threaten local industries and jobs for hundreds of thousands of our people,” he said.

Jokowi’s Legacy in the Project

Prabowo acknowledged that the refinery was initiated during the administration of Indonesia’s seventh president, Joko Widodo. He revealed that Jokowi had been invited to the inauguration but was unable to attend.

“We also invited President Jokowi, but he was unavailable. Perhaps this was destiny—his administration started the project, and I am the one inaugurating it,” Prabowo remarked.

With this new refinery, Indonesia is reinforcing its commitment to industrialization, resource optimization, and economic self-reliance—critical steps in elevating its role in the global market.