Erick Thohir: Freeport’s Gold Shipment to Antam Saves Indonesia’s Foreign Reserves by Trillions

JAKARTA, investortrust.id - Indonesia’s state-owned enterprises minister announces that a landmark partnership between PT Freeport Indonesia and PT Aneka Tambang strengthens the national economy by refining gold domestically, reducing reliance on imports, and saving vast sums in foreign exchange reserves.

This move underscores a strategic push toward downstream processing of natural resources, a policy priority with significant economic implications.

The collaboration saw its first milestone on Friday, Feb. 21, 2025, when PT Freeport Indonesia, a subsidiary of U.S.-based Freeport-McMoRan, delivered an initial batch of gold bars to PT Aneka Tambang, commonly known as Antam, a member of the state-owned mining holding company MIND ID.

Speaking in Jakarta, Minister of State-Owned Enterprises Erick Thohir hailed the deal as a game-changer. “This partnership delivers immense benefits to the national economy. Downstream processing is a non-negotiable option,” he said.

The minister revealed that Freeport’s smelter, with an annual production capacity of 50 tons of gold, allocated 30 tons to Antam (ANTM). This arrangement, he explained, slashed the need for raw material imports and bolstered Indonesia’s foreign reserves.

“Freeport produces 50 tons of gold, and Antam absorbs 30 tons. The impact is extraordinary, saving hundreds of trillions of rupiah in foreign reserves over five years,” Erick stated. The inaugural shipment amounted to 125 kilograms, valued at $12.5 billion, with a purity level of 99.99%.

This synergy aligns with Indonesia’s broader “hilirisasi” strategy—downstream processing aimed at adding value to raw commodities before export. Historically, the country, which boasts the world’s sixth-largest gold reserves at approximately 2,600 metric tons, ranked 43rd globally for refined gold bullion reserves. 

Erick emphasized that processing gold domestically rather than exporting raw materials marked a transformative shift. “Our gold reserves rank sixth worldwide, but in terms of gold bullion, we were 43rd. This changes that narrative,” he noted.

The deal stemmed from a sales agreement signed in early November 2024 between Freeport and Antam, a move Erick said reduced Antam’s dependence on imported precious metal raw materials. The first shipment came from Freeport’s Precious Metal Refinery (PMR) smelter, a facility pivotal to Indonesia’s ambitions in the global mining sector.

With an estimated savings of hundreds of trillions of rupiah—equivalent to tens of billions of U.S. dollars—over five years, the partnership promises to fortify Indonesia’s economic resilience.

Erick expressed optimism that this step would elevate Indonesia’s standing in the global gold market while fueling economic growth. The initiative dovetailed with President Prabowo Subianto’s directives to prioritize strategic programs, including energy self-sufficiency and the downstream development of natural resources. “This is about adding value to our economy and reducing vulnerabilities,” Erick added.

For Antam, the collaboration offered a lifeline to stabilize its supply chain. Previously reliant on imported gold, the company now benefits from a steady domestic source, enhancing its operational efficiency. Meanwhile, Freeport’s investment in local refining capacity underscored its commitment to Indonesia, where it operates one of the world’s largest copper and gold mines in Papua.

Analysts see this as a bellwether for Indonesia’s mining sector, which has faced scrutiny over raw material exports. The government has withheld export permits for Freeport’s copper concentrate, pushing for greater in-country processing—a policy this gold deal exemplifies.

As Jakarta intensifies its focus on resource nationalism, such partnerships could set a precedent for other commodities, offering a blueprint for economic self-reliance.