Discourse On Restrictions On NPI And Feronicel Smelters, Ministry Of Energy And Mineral Resources: To Sustain

Nickel illustration (photo: dock. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has opened its voice about the government's discourse to moratorium the Ferronicle and Nickel Pig Iron (NPI) smelters.

Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that in principle the government aims to encourage investment and downstreaming so as to get added value.

"We don't want to ban it. We just want to make sure it's sustainable," said Dadan, Monday, October 16.

He added that President Joko Widodo had given directions for the manufacturing industry to be carried out domestically and followed by a derivative industry. Dadan reiterated that the ministry's regulations do not limit but encourage derivative industries from nickel to increase the added value of commodities.

He gave an example of the copper industry that was already established in Gresik, namely the construction of a copper foil factory which was worked on by PT Hailiang Group. Thus, the results of the PT Freeport Indonesia smelter will be absorbed, so that it will become finished or semi-finished goods which will later be used for lithium batteries or electric car batteries.

"When I was in Gresik, it was like that. There was already copper downstream, so it wasn't just a smelter but there was an follow-up. The battery was long," added Dadan.

He also ensured that the nickel moratorium would not interfere with the investment climate in Indonesia because the government had mapped the domestic downstream plan.

"We already have a mapping, that this already has technology, this can be developed in Indonesia, but some cooperation with technology providers," concluded Dadan.