Investment in Nickel Processing Smelters Will Be More Explosive in the Years to Come

Illustration. (Photo: Doc. Antara)

JAKARTA - The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita predicts that investment in smelters that will process nickel will increase in the coming year, which will support Indonesia's ongoing downstream development.

"One of the smelter investments that is getting more and more widespread this year and is predicted to be in the coming years is investment in nickel processing and refining so far," said the Minister of Industry, quoted from Antara, Friday, October 7.

The Minister of Industry added that there are 82 nickel smelter industries that are in the operation, construction, and feasibility studies or planning stages

It is known, one form of downstream mineral-based Natural Resources (SDA) is the growth and development of processing and refining facilities (smelters).

With the rise of investment in smelters being built to date, continued the Minister of Industry, the export value of nickel-based commodities has increased, especially for ferronickel.

The export value of ferronickel commodities has continued to increase in the last 10 years because the government has imposed regulations and prohibitions on the export of raw minerals which were previously regulated in Law Number 4 of 2009 concerning Mineral and Coal Mining in Article 102.

For other commodities that support downstreaming, he continued, there are two copper industrial smelters, four aluminum industrial smelters, and an alumina refinery that has been operating.

The Minister of Industry conveyed that the downstream program had a broad impact on the national economy, particularly through employment.

"Along with the increase in the production of iron, steel, copper and gold raw materials from metal ore mining business fields, the total existing smelters to date have absorbed around 200.000 workers spread across 15 provinces," said the Minister of Industry.

The Minister of Industry added that the smelter industry also carries out a knowledge transfer process by sending training and assistance to Indonesian workers.

Several smelters have collaborated with industrial education and training centers (vocational training) and universities, especially in industrial areas to train and prepare competent industrial workers.

The Minister of Industry added that smelters produce products with higher added value than mining products.

Therefore, further industries are needed that can process products from smelters so that a more comprehensive supply chain can be created from upstream to intermediate to downstream for the creation of downstream to downstream industries for the final product (end product).