Aneka Tambang Enters a New Phase in Gold Downstreaming
Mon 15 Sep 2025, 14:14 PM
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PT Aneka Tambang Tbk (ANTM), or Antam, is preparing to open a new chapter in its gold business amid Mining Industry Indonesia’s (MIND ID) push to accelerate downstreaming of natural resources.
Antam is expediting a strategic project to build a gold minting plant at the Java Integrated Industrial and Ports Estate (JIIPE) in Gresik, East Java, located near Freeport’s copper smelter. Through this facility, doré bullion from Freeport will be refined into pure gold and then minted into Antam-branded gold bars.
Antam’s Director of Finance and Risk Management, Arianto Sabtonugroho, said the investment value for this facility reaches USD 70 million, or around IDR 1.1 trillion. The plant is targeted to begin operations in the fourth quarter of 2027 and will be capable of producing up to 5 million pieces of minted precious-metal bars, coins, and industrial gold annually. The facility will also provide direct access to pure gold feedstock with a fineness of 99.99%.
“This is related to our strategic project, namely the construction of a new gold processing manufacturing plant in Gresik, which will add to our existing gold manufacturing capacity currently handled at our Pulo Gadung plant,” Arianto said at Public Expose Live 2025, quoted Monday (15/9).
In the first half of 2025, the majority of Antam’s gold supply still came from imports, accounting for 78%, while the remaining 22% was sourced domestically, including from PT Freeport Indonesia (PTFI). However, Freeport’s supply is not in the form of finished gold bars, but doré bullion—semi-processed gold that still requires refining.
Previously, Antam purchased 30 tonnes of gold from Freeport’s plant in Gresik, East Java, worth USD 12.5 billion or around IDR 195.7 trillion. This was undertaken to promote downstreaming and resource-based industrialization, which is among the government’s 17 priority programs. It also aims to increase the production of minted gold pieces that Antam sells to the public.
Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung said late last year that this synergy—collaboration among MIND ID’s subsidiaries—can have a positive impact on the national economy. Previously, Antam had to import gold valued at up to USD 12 billion or IDR 188.46 trillion (exchange rate: IDR 15,705 per US dollar).
Downstreaming of Antam’s gold provides layered benefits to the national economy. The government will no longer have to rely on imports of pure gold, as domestic needs can be met at home. Moreover, refining and minting into gold bars will take place in Indonesia, which can help bolster the national gold industry.
MIND ID also stated that the synergy between the two companies will result in foreign-exchange savings. The country will no longer need to import Antam’s precious-metal feedstock, and this step also demonstrates tangible results from the government’s downstreaming program. Furthermore, MIND ID said it is ready to participate in the formation of a bullion bank through Antam.
Antam Supports a Bullion Bank
Alongside its move to build a gold minting plant, Antam is also ready to take part in the bullion bank ecosystem. This is being done to support a more inclusive and sustainable gold investment ecosystem to strengthen economic resilience.
President Prabowo Subianto inaugurated the bullion bank in February 2025. He expressed hope that the launch of the Gold Bank would add value to the utilization of natural resources.
“Our wealth is vast, our potential is great—our management must be smarter, more meticulous, more prudent, and more transparent,” Prabowo said at the launch of the Gold Bank on Wednesday (26/2).
Recognizing this potential, Antam declared its full support for establishing Indonesia’s Bullion Bank and stands ready to participate in the ecosystem by providing high-quality precious-metal gold products. This support is also Antam’s strategy to expand access and strengthen public trust in gold as an investment instrument.
Antam’s precious-metal products are known for assured purity, personalization options to meet investor needs, and production at facilities certified by the London Bullion Market Association (LBMA).
With the presence of a bullion bank, gold services are projected to expand further, encompassing deposits, financing, trading, and custody. In line with this, Antam has partnered with Pegadaian and PT Bank Syariah Indonesia Tbk (BRIS), or BSI, for the distribution of physical and digital gold to strengthen service reach across various market segments.
“Pegadaian and BSI are our key partners as wholesale and corporate customers. We will also fully support the bullion bank ecosystem for physical and digital gold trading,” said former Antam President Director Nico Kanter in February 2025.
Antam’s contribution to establishing a bullion bank paves a new path for the national gold industry. No longer limited to producing gold bars, Antam now positions itself as part of a financial ecosystem that promotes literacy and access to gold investment for the broader public. People will find it easier to access internationally standardized gold products, making gold a safe and profitable investment instrument.
Thus, gold becomes not only a symbol of prosperity but also a safe and rewarding investment choice for the future.
Antam’s Gold Sales Surge
Based on its financial report, the issuer under the holding company Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara) recorded sales of IDR 59.01 trillion in January–June 2025, up from IDR 23.18 trillion in the same period the previous year (yoy), a jump of 154.57%.
By segment, gold sales in the first half of 2025 soared 163% year-on-year to IDR 49.53 trillion, equivalent to 84% of the company’s total revenue. Antam recorded total gold production of 438 kg or 14,082 troy oz, relatively stable compared to the previous year’s gold production of 440 kg or 14,146 troy oz.
In addition, management said this MIND ID member booked the highest quarterly gold sales in its history in the second quarter of 2025 at 15,566 kg or 500,459 troy oz. This figure rose 76% from sales in the same period last year of 8,857 kg or 284,759 troy oz.
Sales growth in the second quarter propelled first-half 2025 gold sales to 29,305 kg or 942,178 troy oz, up 84% from 15,969 kg or 513,415 troy oz in the previous half-year.
These achievements led Antam to book a net profit of IDR 4.69 trillion in the first half of 2025, up 202.58% compared with net profit of IDR 1.55 trillion in the same period of 2024.
“Our market coverage for minted precious-metal bars is 100% within Indonesia—the domestic market—where nearly 70% is distributed through wholesale partners, and the remainder through Antam’s direct channels, including physical retail boutiques as well as online channels and the Antam Logam Mulia digital app,” said Arianto.
Antam’s Outlook
Mining analysts view Antam’s prospects as increasingly bright, provided corporate governance remains strong. Good corporate governance (GCG) is considered key for this state-owned miner to maintain the continuity of its rapidly improving performance.
Ferdy Hasiman, a researcher at Alpha Research Database Indonesia and a mining observer, noted that gold imports add cost burdens for Antam. However, the availability of doré bullion from Freeport can reduce these costs by easing dependence on imports.
He argued that Antam’s downstreaming efforts through the construction of the gold minting facility will not only produce intermediate products but also meet domestic industrial needs. Ferdy believes this situation benefits both Antam—by reducing import costs—and Freeport, whose products are absorbed by the domestic market.
Although domestic gold absorption currently stands at around 22%, he projected substantial room for Antam to increase local uptake. He said the scale of absorption will be determined by Antam’s ability to expand production capacity.
“But in my view this is very attractive for the domestic market, because the output from the gold minting facility is not just intermediate product—it is directly absorbed by domestic industry for processing and so forth,” Ferdy told Katadata.co.id, Monday (15/9).
Since joining the MIND ID holding, Ferdy said Antam’s profits have surged from the hundreds of billions of rupiah to more than IDR 1.55 trillion. He said cooperation with Freeport is seen as more efficient, as it can reduce production costs while strengthening the domestic gold supply chain. In his view, gold downstreaming can boost Antam’s sales, widen profit margins, and reinforce its position as one of the most promising state-owned miners going forward.
“That is what is expected from Antam. As for concessions and so on, I believe the state will provide strong backing for Antam—but what’s most important now is management,” Ferdy said.
Mohammad Faisal, Executive Director of the Center of Reform on Economic (CORE), assessed that the 30-tonne gold sales-and-purchase agreement between Antam and Freeport is a concrete step in promoting gold downstreaming. The agreement aims not merely to rely on raw materials, but to process them into value-added products that can be marketed as semi-finished or finished goods.
“And this should also potentially develop gold derivatives and, ideally, help the growth of the bullion bank,” Faisal told Katadata.co.id, Monday (15/9).
In addition, J.P. Morgan expects Antam’s performance to improve starting in August with volumes around 4 tonnes, approaching the first-half average of 5 tonnes. Fundamentally, ASEAN Metals, Indo Auto & Consumer Research analysts at J.P. Morgan, Benny Kurniawan and Henry Wibowo, also foresee Antam’s financial prospects remaining solid.
The company is projected to book around IDR 9 trillion in net profit in 2025, in line with internal estimates of IDR 8.6 trillion and far above the market consensus of IDR 6.8 trillion. With a pace of IDR 2 trillion per quarter in the second half of this year, Antam is believed to be able to sustain its momentum despite volatility in July.
J.P. Morgan maintains an overweight rating on ANTM with a target price of IDR 3,850 per share. Antam is seen as supported by two main catalysts: rising volumes in gold processing and trading, and resilience in the nickel ore business, which could improve following 2024 permit issuances. “ANTM’s valuation is set at 10.5x average FY2025/2026 earnings, below the three-year average of 12x to account for potential execution risks,” wrote J.P. Morgan’s ASEAN Metals, Indo Auto & Consumer Research analysts, Benny Kurniawan and Henry Wibowo, in their report, quoted Monday (15/9).
As for today’s trading session, Monday (15/9), ANTM shares have surged by 128.20% year to date (ytd). ANTM traded in the range of IDR 3,430 – IDR 3,530 per share, with market capitalization reaching IDR 83.87 trillion.
Mirae Asset Sekuritas upgraded its recommendation on Aneka Tambang (ANTM) shares to trading buy, with a new target price of IDR 4,000 per share. The target reflects a 2025F P/E valuation of 10.0x, in line with the three-year average. The target for ANTM shares is driven by positive gold price momentum expected to continue through the third quarter of 2025, which could support ANTM’s performance.
Mirae Asset also believes the rising gold trend will provide room for ANTM’s earnings to beat market expectations. The latest target price is based on revised profit projections in line with the company’s solid financial performance throughout the year, as reflected in its strengthening share price.
“The company’s ability to maintain resilient cash costs, coupled with strong sales from both its gold and nickel-ore segments, underpins the bullish outlook for ANTM shares,” said Mirae Asset Sekuritas Indonesia analyst Muhammad Farras Farhan, quoted Monday (15/9).
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