President Director Of MIND ID Hendi Prio Heeded Mulan Jameela's Instructions On The Construction Of Antam's Smelter Grade Alumina

Nickel processing activity (smelter) in Morosi District, Konawe, Southeast Sulawesi. (Photo: ANTARA)

JAKARTA - Member of Commission VII DPR from the Gerindra faction Mulan Jameela questioned the progress of the Grade Alumina Refinery (SGAR) smelter construction in Mempawah, West Kalimantan, which has only reached 15 percent.

He assessed that the development progress should have reached 70 percent and completed in 2021.

"Regarding the construction of Antam's smelter grade alumina, so far, only 15 percent of the construction has been completed, is that correct? What are the details," said Mulan in a Hearing Meeting with MIND ID, Thursday, June 2 yesterday.

According to Mulan, the delay in the construction of the smelter has caused losses to MIND ID and furthermore, it has even caused state losses.

He urged the government to conduct an environmental audit of PT Vale Indonesia (INCO) regarding environmental pollution caused by sedimentation of ex-mining soil.

"Lastly in 2021, sulfur waste was found which was categorized as B3 waste that polluted the coast of Mori Island. Seeing this issue disappearing, we urge an environmental audit related to the implementation of environmental protection policies," said Mulan.

In response to this, the Managing Director of Holding MIND ID Hendi Prio Santoso, who also represented INCO, said that his party would pay attention to Mulan Jameela's suggestions and directions regarding the environmental development aspects carried out by INCO.

"We will pay attention to directives regarding aspects of environmental development," he said.

Regarding the smelter project, Hendi admitted that the smelter construction project had stalled for two years due to the contractor's performance.

Hendi said that currently the project has begun to develop.

"We will pay attention to several strategic projects that are indeed hampered, especially the smelter grade alumina refinery that has been conveyed by Mrs. Mulan. God willing, there has been a new commitment from them so that development will continue. Indeed, it was two years behind schedule," he said.

Previously, the Director of Operations and Portfolio of MIND ID, Danny Praditya admitted that with the slow pace of the project, MIND ID suffered losses due to the fixed costs that had to be incurred every month.

Based on the initial development target, this smelter should be able to operate in 2023.

"Apart from the investment side, we also experience losses because there are costs incurred every month. It should have been completed by now at 71 percent, but now the actual delay is still 13.7 percent," Danny said in an RDP with Commission VII DPR RI, Monday, March 21. .

The SGAR project is managed by PT Borneo Alumina Indonesia (PT BAI) which is owned by PT Inalum (Persero) with a 60 percent stake and ANTAM with a 40 percent stake.

Meanwhile, SGAR is targeted to enter the commercial operation date (COD) stage in 2023. After operating later, SGAR is projected to have a production capacity of 1 million tons of alumina.

Based on his narrative, the delay was caused by PT Pembangunan Perumahan (Persero) Tbk (PTPP) and China Aluminum International Engineering Corporation Limited as the Indonesia-China consortium yet to find an agreement on a number of issues.