Jakarta. Copper and gold miner Freeport Indonesia and state-owned gold supplier Aneka Tambang (Antam) signed on Thursday a sale and purchase agreement covering 30 tons of gold worth $12.5 billion for five years, equivalent to around Rp 200 trillion.

The agreement was signed by Freeport CEO Tony Wenas and Antam CEO Nicolas Kanter at Kempinski Hotel in Jakarta in the presence of State-Owned Enterprise Minister Erick Thohir and representatives from the Energy and Mineral Resources Ministry and the state-owned mining holdings MIND ID.

Erick said the gold transactions between local companies could significantly save foreign exchange reserves.

"Freeport can produce 50 tons of gold and a purchase of 30 tons by Antam could save Rp 200 trillion in foreign exchange reserves. We must continue to push for mining industrialization at home to protect the national economy," Erick said after the signing ceremony.

Nicolas said Antam may increase the volume of gold purchased from Freeport in the future, saying the deal helped Antam reduce reliance on imported gold.

"Under the agreement, we agree to buy 30 tons of gold following Freeport’s current production capacity. However, when our demand exceeds 30 tons, we will continue to prioritize Freeport as our main supplier to reduce our import dependency," Nicolas said.

On the other hand, Freeport is ready to boost its capacity to anticipate a growing demand from Antam, Tony Wenas said in the joint news conference.