Indonesia's Gold Production Down 6.47% in 2020 Following Freeport Mining Transition

Indonesia is renowned for its abundant natural resources, one of which is gold. Gold mining plays a significant role in the national economic growth.

National gold production increased from 2016 to 2019, but declined in 2020. Citing *ceicdata.com*, national gold production was reported at 130 tons in 2020. This figure is down nine tons or 6.47% compared to the previous year's 139 tons.

The Ministry of Energy and Mineral Resources (ESDM) explained that the decrease in gold production in 2020 was due to the impact on production activities at PT Freeport Indonesia. This is related to the transition from open-pit mining to underground mining.

Over that five-year period, the highest gold production occurred in 2019 at 139 tons. The lowest production was in 2016 at 73.59 tons. The increase in production in 2018 was influenced by the increase in gold production from PT Freeport Indonesia by 68.45 tons.

In Indonesia, there are at least five giant gold mines spread across several regions. These five gold mines include Grasberg (Papua), Tujuh Bukit (Banyuwangi), Gosowong (North Sulawesi), Batu Hijau (West Nusa Tenggara), and Martabe (North Sumatra).

(Read More: Survey: 46% of Indonesians Invest in Gold)