The Politics Behind Freeport’s Smelter Projects
Summary
- The first problem of Freeport-Tsingshan’s smelter construction plan is the influence of the Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan in pushing the plan. The government was reportedly impatient with Freeport’s sluggish progress in building a smelter in the integrated industrial area in Gresik, East Java. Tsingshan's offer came at the right time.
- The difference of attitude between policymakers in the government on the Freeport-Tsingshan smelter project is also problematic. On the one hand, Luhut is very supportive of the collaboration plan. On the other hand, based on the information compiled by D-Insights, the Energy and Mineral Resources (ESDM) Ministry really wants Freeport Indonesia to stick to its original plan to build a smelter in Gresik.