JAKARTA - Member of Commission VII DPR RI, Rofik Hananto, supports President Joko Widodo's policy of prohibiting the export of nickel and copper ore.
According to him, this export ban is seen as important for the development of domestic nickel downstreaming.
He added that his faction supports the government in building smelters to accelerate the development of downstream nickel commodities.
"This policy is good for developing downstream nickel commodities, so it has great added value in the country," said Rofik in his official statement to the media, Wednesday, September 14.
As is known, President Jokowi had said that the cessation of nickel exports was the spirit of improving mining governance in the country.
This is a momentum to revive industrial downstreaming in order to encourage added value in the country. Indonesia has imposed a ban on nickel ore exports since January 1, 2020 which was stipulated through the Regulation of the Minister of Energy and Mineral Resources Number 11 of 2019.
President Jokowi gave an example, the added value generated from downstreaming of the copper industry through the acquisition of PT Freeport Indonesia since 2018.
The acquisition was taken after Freeport did not agree on the government's request to build a smelter facility which Jokowi said would be completed in Gresik in 2024. Indonesia only gets 62 percent of dividends, royalties, and taxes from Freeport.
Rofik added, if added income from his partners, the government could earn 70 percent of Freeport's revenue.
The president said that if he entered the state treasury, it would definitely ease the burden on the state budget.
Rofik continued, the Indonesian government ensured that it would continue to reject the opening of nickel ore exports even though it had lost at the World Trade Organizations (WTO) session.
"This step was taken by the government so that Indonesia does not only become a dairy cow from nickel commodities," he said.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif also ensured that the Indonesian government had not given up on the defeat of the judiciary against the WTO.
He said, all efforts will still be made by the Indonesian government so that Indonesia will continue to get added value and not only do its raw resources are dredged by foreigners.
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