12 October 2021
JIIPE Officially Becomes a Special Economic Zone
News | Oct 12, 2021
Gresik: Java Integrated Industrial and Ports Estate (JIIPE) Gresik, East Java officially operates as a Special Economic Zone (SEZ). The handover and inauguration of the Gresik SEZ was carried out directly by Coordinating Minister for the Economy Airlangga Hartarto.
Coordinating Minister for the Economy Airlangga Hartarto handed over Government Regulation (PP) Number 71 of 2021 which stipulates JIIPE as a Special Economic Zone to the board of directors of JIIPE Gresik, on Tuesday, October 12, 2021. The handover of the PP was also witnessed by the Minister of Energy and Mineral Resources Arifin Tasrif and the Minister of Industry (Minister of Industry) Agus Gumiwang Kartasasmita.
"This is a historic moment because it is a continuation of 30 years ago. With this achievement, almost all of Freeport's production processes are carried out domestically. So the added value is domestically," said Coordinating Minister for the Economy Airlangga Hartarto.
JIIPE is a strategic area and is predicted to increase the investment value quite high. Airlangga targets that by 2036 the investment will reach USD15.5 billion (around Rp220 trillion).
Not only that, JIIPE is also projected to create new job opportunities. It is estimated that it will absorb 200 thousand local workers.
"With JIIPE which has officially become a SEZ, it is hoped that it will create a national economy that continues to increase and provide jobs for the community. Hopefully we can contribute to lightening the burden on the state to open new jobs and reduce unemployment," said the President Director of PT Berkah Kawasan Manyar Sejahtera ( BKMS) Bambang Soetiono.
Currently JIIPE has been filled by 15 tenants. In addition, 10 foreign companies have expressed interest in investing in JIIPE.
Along with the handover of the PP, a groundbreaking event was held for the construction of the PT Freeport Indonesia Smelter and its facilities at the Gresik SEZ, East Java, which was attended by the President of the Republic of Indonesia, Joko Widodo.
PT Freeport Indonesia as one of the tenants in the industrial area plans to build a smelter for downstreaming and refining minerals with high added value.
PT Freeport Indonesia's refining facility at JIIPE Gresik consists of a new copper refinery which is an expansion of PT Smelting (PTS) and Precious Metal Refinery (PMR).
The PT Freeport Indonesia smelter in the JIIPE Gresik Industrial Estate will produce cathode products in the form of copper, gold and pure silver bars, platinum, palladium, selenium, bismuth, and lead.
In addition, there are by-products in the form of sulfuric acid, copper slag, and gypsum which will be reused as raw materials or auxiliary materials for industry and potential investors in the JIIPE Gresik Industrial Estate. (Source: MetroTV)