Freeport Boosts 2026 Investment to Strengthen Copper Downstreaming and Sustainable Mining
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JAKARTA, Investortrust.id — PT Freeport Indonesia, one of the country’s largest copper producers, has confirmed plans to invest around Rp 15 trillion in 2026 to strengthen its downstream operations and ensure sustainable mining continuity beyond 2041.
Vice President Corporate Communications PT Freeport Indonesia Katri Krisnanti said the investment aligns with the government’s long-term industrial policy emphasizing mineral downstreaming to boost domestic value creation.
“Our investment is aligned with the government’s main objective, which is downstreaming. The goal is to drive greater value for the national economy,” Katri said during the Investortrust Economic Outlook 2026 seminar in Jakarta on Wednesday, Nov 5, 2025.
She explained that Freeport’s copper resources remain vast, totaling around 3 billion tons of identified reserves that can sustain operations until 2041, with an additional 1.5 billion tons potentially available for future exploration. “Once a mine operates, it must be optimized until fully depleted. It cannot be turned on and off, which is why investment continuity is essential,” Katri said.
Freeport’s commitment to downstreaming has already materialized through the full operation of its Gresik smelter, which began running in June 2024. The US$ 4.2 billion (about Rp 68 trillion) facility, combined with the expansion of PT Smelting, allows the company to process 100% of its three million tons of copper concentrate domestically.
“With the Gresik smelter now operational and the PT Smelting expansion completed, all three million tons of copper concentrate from Papua can now be processed in Indonesia,” Katri said.
The Gresik facility alone can process 1.7 million tons of concentrate annually, while PT Smelting’s expansion adds another 1.3 million tons. Together, they yield 800,000 tons of copper cathodes each year — equivalent to materials needed for eight million electric vehicles or to construct 2,000 towers the size of New York’s Empire State Building.
Beyond copper, the Gresik smelter also produces gold, silver, palladium, and platinum through its precious metal refinery unit. “We see copper as the metal of the future, vital for energy transition and green technologies,” Katri said.
Freeport’s contribution to Indonesia’s economy remains substantial. In 2024, the company delivered Rp 80 trillion in total state revenue, including Rp 12 trillion distributed to regional governments. Its economic impact reached 0.75% of national GDP, 77% of Papua Tengah’s GDP, and 91.16% of Mimika’s GDP.
Katri emphasized that Freeport’s long-term vision combines economic contribution with environmental stewardship. Since 2018, the company has reduced its carbon emissions by 31%. “As a key player in Indonesia’s copper industry, we believe the country’s economic sustainability depends on managing natural resources wisely and ensuring that value creation happens domestically,” she concluded.