SOEs Minister: PTFI-Antam collaboration of great benefits to Indonesian economy

State-Owned Enterprises (SOEs) Minister Erick Thohir stated that the gold purchase cooperation between PT Freeport Indonesia (PTFI) and PT Aneka Tambang (Antam) provides great benefits for the Indonesian economy.

PTFI has started selling 125 kg of processed gold to Antam which is part of a five-year cooperation contract with a value of US$12.5 billion. Erick said the contract is part of Mining Industry Indonesia (MIND ID)'s strategy of downstreaming the gold industry and reducing imports. Freeport's refining facility has a production capacity of 50 tons of gold per year, of which Antam will procure 30 tons.

"Downstreaming is a non-negotiable option," said Erick as quoted from the SOEs Ministry's press conference on Mar. 3, 2025.

The minister said that the cooperation is in line with the direction of President Prabowo Subianto, who encouraged the Red and White Cabinet to carry out strategic programs, including energy self-sufficiency and downstreaming of natural resources. Rrick is optimistic that the downstreaming of the mining sector, especially gold, can further strengthen Indonesia's position in the global market and provide a positive impact on Indonesian economic growth.

"Our gold reserves are the sixth largest in the world at around 2,600 metric tons, but we are ranked 43^rd in the world but for gold bullion reserves," said Erick.

He added that Indonesia no longer need to have raw gold processed abroad with the cooperation between Freeport and Antam, but can instead have it be processed domestically and provide added value to the Indonesian economy. Erick said that the cooperation will have a major impact on Indonesian economic resilience.

"Freeport produces 50 tons of gold, and Antam procures 30 tons [of that amount]. The impact is extraordinary because it can save foreign exchange reserves of up to hundreds of trillions [of Rupiah] in five years," said Erick.

He explained that that this gold sale is a follow-up to the gold metal sales and purchase agreement between Freeport and Antam which was agreed upon in early November 2024. The cooperation is also expected to reduce Antam's dependence on imports of precious metal raw materials, especially gold bullion.

Antam President Director Nico Kanter explained that the synergy established with PTFI is a form of downstreaming the gold industry in Indonesia.

"This collaboration certainly helps Antam increase the sourcing of gold raw materials from within the country. Gold from PT Freeport Indonesia will later be processed at our Processing and Refining Plant to be made into Antam's precious metal products," he said.

Nico also said that the collaboration will optimize the production of Antam's precious metal gold products amid high market demand.