The Indonesian government is preparing two locations - Kendal (Central Java) and Gresik (East Java) - as alternatives for the automotive manufacturing industry in Indonesia. Currently, West Java (specifically Karawang) is the nation's car manufacturing hub where most carmakers establish their manufacturing facilities.

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Subsidiary of US-based natural resources company Freeport McMoRan Copper & Gold Inc, Freeport Indonesia, decided to build its copper smelter in Gresik (East Java) as infrastructure around this regency makes it easier to transport its mining products for export purposes. The other location that Freeport was considering was in Papua, near its mining site the Grasberg mine, the world’s largest gold mine and third-largest copper mine. However, infrastructure in Papua (one of the poorest regions in Indonesia) is still underdeveloped.

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