The current downstreamization of the mining industry is still half way through. That is the assessment of the General Chair of the Indonesian Mining Experts Association (Perhapi) Ir. Rizal Kasli, ST, IPU, ASEAN Eng. According to him, ideally downstreaming really reaches the downstream, the existing natural resources are processed until they become finished goods. There are a number of problems involving downstreaming in Indonesia.

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Indonesia is a country rich in natural resources. However, not everything can be processed. What happens after mining is carried out is immediately exported abroad in the form of raw materials. That's why downstreaming is a demand for the processing of raw materials into semi-finished materials and the subsequent process into finished materials. There is added value obtained from this downstream process.

Currently, downstreaming has occurred in the mining sector. But what happened was only halfway through. "So far, what is understood as downstreaming is producing intermediate products from raw materials. In fact, the raw materials must be processed down to the final product. So it must be interpreted as industrialization in general. So what hasn't been done yet is the continuation, from semi-finished materials to finished materials," said Rizal Kasli.

The obstacles to this downstream process include, firstly, the matter of mastering technology that does not yet exist. Indonesia doesn't have the technology yet so it still has to import from other countries such as China. "There must be incentives and convenience for investors who want to invest in the downstream sector. And the government must encourage BUMN to dare to innovate so they can enter related industries that support downstreaming," he stressed.

Now the downstream process has occurred, but the government should not only pursue investment targets, but also the added value of investment. As far as possible, as many workers as possible should come from within the country. So negotiations must be strong. The Domestic Component Level (TKDN) must be high, don't bring everything from the country of origin. “The government must be more serious about downstreaming. Don't just be satisfied with half-finished products, you have to produce a final product. This means industrialization is happening," he said to Edy Suherli, Bambang Eros, and Irfan Medianto from VOI who met him in the Mampang area, South Jakarta not long ago. Here's the full quote.

Nickel has become a topic of conversation again, this time the price has plummeted, why is that?

Even though the price of nickel has fallen recently, nickel is still a favorite. Because nickel is used for many products. For stainless steel alloys,  and other metal alloys. The widespread use of electric cars to replace fossil fuel cars has made batteries a necessity. One of the components is nickel-cobalt, another component which is also used for electric car batteries is LFP (lithium ferrophosphate) which was discussed yesterday in the vice presidential debate. Both have their respective advantages and disadvantages. Nickel batteries have a high density, so they travel longer distances. If the LFP has a lower density, the distance it travels is not as far as nickel batteries. But from a security perspective, LFP is superior.

The fall in nickel prices cannot be separated from supply and demand. Now supply is high while demand is decreasing. In the past, on the contrary, there was a lot of demand and little supply, prices were high. Abundant supply due to the completion of smelters in various regions in Indonesia. China, as the largest user of nickel, has seen demand not meet expectations, because its economic growth has not been very good. This is what makes nickel prices fall.

What impact will this have on nickel mining in Indonesia?

In several countries such as Australia and New Caledonia, some have closed their nickel mines because operating costs are not commensurate with the selling price. In Indonesia it can still operate because operating costs can be competitive.

Is there an association of Nickel producing countries like in oil there is OPEC?

Until now there hasn't been, I don't know if it will be in the next few years. Currently Indonesia is the largest nickel producer, followed by Australia and other countries. In Indonesia there is an association of nickel mining entrepreneurs. I think whether it is needed or not depends on the nickel producing countries. Because if there is, you can regulate production quantities so that prices can be controlled.

So production quantities can be regulated?

Yes, in the Ministry of Energy and Mineral Resources there is a RKAB (Work Plan and Budget) submitted by mining companies. This is a mechanism to control domestic nickel production. The DMO (domestic market obligation) mechanism in the production of palm oil or CPO can also be applied to nickel.

What obstacles do you see in this downstreaming?

Firstly, the technology is not ready. Second, because we are not ready, what we can do is attract investment so we can open a factory in Indonesia. Third, so that investors are interested, the government must provide facilities such as permits, fiscal measures and so on. And fourth, the government must also encourage BUMN to dare to innovate so they can enter related industries that support downstreaming.

Is the downstream nickel smelter using the nation's children, not foreign workers continuing to dominate?

We have natural resources but don't have technology, so we end up importing them. Well, they also use energy from their country of origin, generally China. Ideally there will be a transfer of technology. Furthermore, foreign workers can be replaced by local workers. The government should not only pursue investment targets, but also the added value of investment. As far as possible, as many workers as possible should come from within the country. So negotiations must be strong. The Domestic Component Level (TKDN) must be high, don't bring everything from the country of origin.

What are your hopes for the elected President and Presidential Candidates regarding mining issues in general?

What we all need to rely on is article 33 of the 1945 Constitution, that natural wealth belongs to the state and must be used as much as possible for the prosperity of the people. The mining process must be carried out using Good Mining Practice and ESG systems. The country can make maximum profits, the people can feel it and investors can also profit. So our hope is to create a sustainable mine, the environment can recover after mining. What we have seen so far after clearing land for mining, rehabilitation and reclamation is still not optimal. This is what we ask the new president to pay attention to. There are a lot of miners without permits, reaching more than 3 million, this must also be addressed so that the government can enjoy it too. There is a need to regulate unlicensed mining. The country loses with this practice.

The issue of downstreaming the government must be more serious. Don't just be satisfied with producing semi-finished products, you must produce final products. This means that industrialization occurs and produces added value.

For Rizal Kasli Football is not just a sport

Since childhood, he has loved football, even when he moved to Bandung and worked in various regions and until now it has never faded. Because football has a wide social circle. He even managed to approach the community around the mining company where he worked after playing football. Football for Rizal Kasli is more than just a hobby.

Like local children in general, games such as soccer, volleyball and badminton are choices. “In the village there are no cool sports like in big cities. There is football, volleyball and badminton. I happen to like football," said the man who was born in Sigli Aceh, December 15 1963.

His passion for football continued until he moved to Bandung and continued his studies at ITB. “From when I was little until I studied at ITB, I never stopped playing football. Even after graduating from college and working at Freeport, I even formed a sports club. There are various sports covered; soccer, tennis, ping pong, billiards, mountain climbing, etc.," said Rizal, who plays as a striker when playing soccer.

And for him football does not stop as a sport, but can be a tool of diplomacy. “For me, football can be a means to get closer to society. When I moved to work in Kalimantan, through football I made friends with the community around the mine. Initially we didn't have any land, because the land was controlled by the Dayak tribe. After playing two friendly matches, we were helped to get land," he said.

Tips for Maintaining Stamina

Rizal Kasli has tips for maintaining his fitness and stamina even though he is now six years old. “First, never stop practicing. Every week you can play soccer or futsal twice. Secondly, don't force yourself, you have to remember your age. If you're tired, you have to rest. And thirdly, every six months, have a health check. I have a regular doctor to check my heart and other organ conditions," he said.

Apart from that, what he does to maintain stamina and health is to get enough rest and maintain his diet. "At 21.00 WIB I was asleep, the next day at 3.00 WIB or 4.00 WIB I was up. When it comes to food, you have to be careful, just drink water. Just leave fizzy drinks and alcoholic drinks," suggested Rizal, who is a playing friend of Ajat Sudrajat, Persib Bandung's mainstay player.

Lionel Messi, Kyllian Mbappe, Ronaldo, Mohammed Salah, etc., are world players who are his inspiration. “They are professional players, so they really take care of their physical condition. Then they also develop techniques for playing soccer so they are successful on the field. If our football players want to progress, their reference should be to watch football, not anything else," he said.

In order for Indonesian football to progress, according to Rizal, coaching must be good from an early age. "Selection must be the best, I see now the seeds are quite good. This must be accompanied by regular coaching and competitions," he suggested.

Family Remains First

Even though he is busy with office matters, organizations and his hobby of football, Rizal Kasli still pays attention to his family. “There's no point in having a career if we don't pay attention to our family. So no matter how busy you are, you have to divide your attention between your children and your wife. When the children were small, Saturday and Sunday were family days, we exercised together," he said.

Now his two children are married and live separately. Also, the other two continued their studies in other cities, one in Bandung and the other in Jogja. “Now it's just the two of us at home. But communication continues, usually telephone or video calls with children and grandchildren," he added.

When there is a friendly match out of town or abroad, he also invites his wife and children who can come along. "Yes, as well as recreation, after the match is finished, go on a trip to a tourist location," he added.

To students and young people, Rizal Kasli advised them to like the world of mining, because this sector has great opportunities. “All the products we use every day are mined. We must focus on mining development, this is an opportunity that must be seized by youth and students. We have to learn about mining so we don't get left behind," he concluded.

"The government should not only pursue investment targets, but also the added value of investment. Regarding the workforce, as many as possible should come from within the country. So the negotiations must be strong. The Domestic Component Level (TKDN) must be high, not all of them brought from the country of origin,"