Minister Of Energy And Mineral Resources Arifin Tasrif Encourages Mineral Downstream Growth

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. Antara)

JAKARTA - The government encourages the program to increase added value through mineral downstreaming so that it can provide maximum benefits to Indonesia's economic growth, and has a strong competitive spirit in the development of the national industry.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that downstreaming must be developed optimally to the basic ingredients of industrial products.

"Mineral downstreaming is not enough to only be processed semi-finished. However, it must be maximally developed into products that are the basic ingredients at the complementary or final stages in industrial trees," said Arifin in a statement to the media, Saturday, September 17.

Arifin emphasized that the smelter construction must get attention and support from the government and other stakeholders so that it can run well. Thus, sustainable synergy and collaboration are needed so that mineral downstream can run optimally.

"The downstream obligation attached to the mining industry is to provide added value in order to provide optimal results for the state and society and to build mineral processing or refining facilities," he added.

Indonesia has a comparative advantage in natural resources, especially mineral reserves such as nickel and cobalt which can be utilized for the development of batteries for electric vehicles that are environmentally friendly. These advantages can be processed into the final product to support the transition to fossil-based energy development by making clean energy for the future.

Furthermore, Arifin advised that in an effort to downstream domestically, it is necessary to utilize mineral and coal resources which are carried out by prioritizing Environmental, Social, and Governance (ESG).

"This can be achieved through the principle of good mining practices, which will not only have an impact on state and community revenues, but also maintain environmental sustainability," he concluded.