JAKARTA - The Ministry of Industry continues to spur the growth of the processing and refining industry (smelters) because it is in line with the downstream policy to increase the added value of natural resources in the country. This strategic step is in accordance with the direction of President Joko Widodo, that the government will gradually stop the export of mineral and coal raw materials.
"Mr. President Jokowi emphasized that we will stop exporting nickel raw materials, then next year for bauxite, then copper, gold and tin. This means that we must establish a smelter industry in the country in order to increase the added value of these raw materials," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Tuesday (28/12).
Yesterday, Monday (27/12), the Head of State accompanied by a number of Ministers of the Advanced Indonesia Cabinet, including Coordinating Minister for the Economy Airlangga Hartarto and Minister of Industry Agus inaugurated the PT Gunbuster Nickel Industry (GNI) nickel ore smelter plant located in North Morowali Regency, Central Sulawesi. The inauguration ceremony was held in Konawe Regency, Southeast Sulawesi. The Minister of Industry explained that PT GNI is a smelter industry that will produce ferronickel with a production capacity of 1.8 million tons per year. This company provides a lot of added value, from nickel ore which is processed into ferronickel, the added value has increased by 14 times. When nickel ore is processed into stainless steel billets, the added value increases 19 times.
PT Obsidian Stainless Steel is a ferronickel-producing smelter industry with a capacity of 1.2 million tons per year, and produces stainless steel billets with a capacity of 1 million tons per year. In addition, there is PT Virtue Dragon Nickel Industry, which is also a ferronickel-producing smelter factory with a capacity of 1 million tons per year.
The total investment from the three smelter industries reached USD 8 billion, with a target of absorbing a workforce of 27 thousand people. Of the operating companies, they have been able to contribute to state revenue in the form of taxes of IDR 1.03 trillion from 2019 to 2021. Overall, the realized value of investment in nickel smelter plants in Indonesia has so far reached USD 15.7 billion. Furthermore, the export of ferronickel products has increased every year. This has a positive impact on increasing foreign exchange. (LM)