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PT. AKR Corporindo, Tbk

AKRA subsidiary PT BKMS signed the Long-Term Land Lease Agreement for Copper Smelter in JIIPE SEZ

August 27, 2021

JAKARTA, August 27, 2021 – PT AKR Corporindo Tbk (IDX stock code: AKRA.IJ) subsidiary PT Berkah Kawasan Manyar Sejahtera (BKMS) and PT Freeport Indonesia (PTFI) have signed the Long Term Lease Agreement for PTFI Copper Smelter and Precious Metal Refinery in SEZ JIIPE Gresik East Java on August 27, 2021. The signing ceremony was attended by Mr. Haryanto Adikoesoemo President Director, Mr. Bambang Soetiono President Director BKMS, Mr. Tony Wenas President Director PTFI and other senior management of AKRA, BKMS and PTFI. Mr.Boy Robyanto - President Director of PELINDO III and the senior management of BMS, were also present virtually.

Left to Right: BKMS Finance Director - Mr. Ifan Johar Kuswahyudi, BKMS President Director - Mr. Bambang Soetiono, PTFI President Director - Mr. Tony Wenas

PTFI requires Land area and additional services and facilities in the SEZ JIIPE Gresik for the development, construction and operation of the copper smelter and refinery and ancillary infrastructure and related facilities.  SEZ JIIPE will provide the land on lease and supporting utilities and services. This Agreement, replacing an earlier agreement, is for long term lease of 80 years, divided into initial lease period of 18 years, followed by another 2 years and then can be extended for 6 periods of 10 years each, in accordance with the terms and conditions in the Land Lease Agreement   

Speaking after the signing ceremony, President Director of AKRA, Mr. Haryanto Adikoesoemo, stated, “We welcome PTFI as one of the major tenants to SEZ JIIPE.   The Smelter project requires extensive use of port facilities, laydown area during construction, reliable supply of utilities and other services.   SEZ JIIPE is ready to meet all the requirements.   

We have designed SEZ JIIPE for the specific needs of industries that are Metal, Chemical, Electronic, Energy and New Economy sectors.   The establishment of PTFI Copper Smelter and Precious Metal Refinery will bring further investments, creating supply chains of many value added products like Electric Vehicles, Fertilizers, Construction Material, and Consumer durables.”  

The President Director of PTFI Mr. Tony Wenas highlighted why PTFI has selected SEZ JIIPE, “The Copper Smelter is a very important project for PTFI.   JIIPE provides the facilities needed by Freeport such as land readiness, ease of licensing and administration, supporting infrastructure: port, road connection, and laydown area”.

SEZ JIIPE Gresik, East Java is a joint venture between AKRA and PELINDO III and is one of major Public Private Partnership in Indonesia.   It is built with a total area of 3,000 ha that comprises an industrial area of 1,761 ha, a deep sea port of 400 ha, and a modern residential area of 800 ha.   

JIIPE is designed as a Green Project with zero water run off and has complete utility facilities.  This facility responds to the needs of the industry in generating efficiency, as well as being a source of recurring income for BKMS.  The location of JIIPE which is connected by sea, Krian Legundi Bunder Manyar Toll Road, and the train provides convenience in the traffic of export and import goods in East Java.


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