MIND ID's Gresik Gold Plant Boosts National Economic Sovereignty Through Downstreaming

Indonesia's state-owned mining industry holding, MIND ID, has launched a gold manufacturing plant in Gresik, East Java. This facility is seen as a vital component in advancing the nation's mineral downstreaming strategy, enhancing the value of natural resources, and bolstering economic sovereignty. The plant is managed by PT Aneka Tambang (ANTAM) and boasts a production capacity of 30 tons per year.

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The policy of downstreaming minerals certainly has long-term strategic value for the Indonesian nation. For decades, we have been accustomed to selling raw goods solely to generate quick income, thereby increasing state revenue.

According to Bawono Kumoro, a senior researcher at Indikator Politik Indonesia, the policy of downstreaming mineral resources holds significant long-term strategic value for Indonesia. For decades, the country primarily exported raw materials for quick revenue. However, this mindset is shifting towards creating greater economic value, strengthening domestic industries, and fostering economic independence. Kumoro highlighted the success of nickel downstreaming, which has led to the production of high-value electric vehicle batteries, as a model for gold.

The new Gresik plant will work alongside ANTAM's existing gold manufacturing facility in Pulogadung, Jakarta, which has a capacity of 40 tons per year. The integrated supply chain will draw gold bullion from ANTAM's gold mines in West Java, producing approximately 1 ton annually, and from PT Freeport Indonesia's Precious Metal Refinery, which can process anode sludge into gold bars, yielding 50 to 60 tons per year.

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That mindset has now been changed in the last few years by carrying out downstreaming. So, the mining minerals we have are not immediately exported in raw form.

With these combined resources, MIND ID aims to strengthen the national bullion ecosystem. This effort is designed to meet the growing domestic demand for gold bullion, estimated at around 70 tons per year and projected to increase due to rising public interest in gold investment. The development of the Gresik plant is part of a broader strategy to enhance the national gold industry's self-sufficiency.

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For example, nickel that is downstreamed into electric vehicle batteries. The downstreaming program produces added value for this nation.