Tujuh Bukit Gold Mine: Driving Economic Growth in Banyuwangi

Economic Contributions

The Tujuh Bukit Gold Mine, operated by PT Bumi Suksesindo (BSI), a subsidiary of PT Merdeka Copper Gold Tbk. (MDKA), has emerged as a crucial economic driver for Banyuwangi, East Java. The mine's operations have significantly contributed to the local and national economy through various channels.

State Revenue

The mine has been a substantial contributor to state revenue through taxes, royalties, and dividends. According to Tom Malik, Head of Corporate Communication at MDKA, BSI has been the largest taxpayer in Banyuwangi, contributing more than 50% of the region's tax revenue. This significant contribution highlights the mine's importance to the local economy.

Employment and Local Economic Stimulation

The Tujuh Bukit Gold Mine has also had a profound impact on local employment. The mine employs approximately 3,000 people, with about 70% of the workforce being local residents from Banyuwangi. This significant employment generation has not only improved the livelihoods of local families but also stimulated local economic activity.

Support for Local Businesses

The presence of the mine has also fostered the growth of local businesses, particularly Micro, Small, and Medium Enterprises (UMKM). In 2024, around 100 local UMKM from Banyuwangi were involved in supporting the mine's operations, with a total contract value of nearly Rp 150 billion. This support includes various services such as labor supply, food, accommodation, and transportation, demonstrating the mine's positive trickle-down effect on the local economy.

Operational Background

BSI operates the Tujuh Bukit Gold Mine under an Izin Usaha Pertambangan Operasi dan Produksi (Mining Business License for Operation and Production) since 2012. The mine began its operations in 2016 and produced its first gold in early 2017. The mine was designated as an Objek Vital Nasional (National Vital Object) in 2016 due to its strategic mineral resources.

Corporate Social Responsibility

The mine's operations have also been accompanied by various Pengembangan dan Pemberdayaan Masyarakat (PPM) or Corporate Social Responsibility (CSR) programs. These initiatives aim to further benefit the local community and support sustainable development in the region.

The Tujuh Bukit Gold Mine serves as a prime example of how a well-managed mining operation can drive economic growth, create employment opportunities, and support local businesses in a region.