JAKARTA - The state-owned construction company, PT PP (Persero) Tbk, will continue the construction process of the Smelter Grade Alumina Refinery (SGAR) project after mediation. The SGAR Mempawah project is expected to be one of the drivers of economic growth in Indonesia, especially in the Mempawah area, West Kalimantan Province.
In accordance with Law Number 3 of 2020 concerning Mineral and Coal Mining (Minerba) where there is a ban on exports of raw materials and concentrates that will take effect from June 2023 to make smelter projects of high hope for the mining industry.
One of the prestigious smelter projects in Indonesia is located in the Mempawah area of West Kalimantan, namely the Smelter Grade Alumina Refinery (SGAR) project. The smelter project, which has a capacity of 1 Million Tons per Year, is one of the national strategic projects carried out by the Chinese Consortium Almunium International Engineering Co. Ltd. (Chalieco) together with PTPP.
The SGAR Mempawah project is owned by PT Borneo Alumina Indonesia (BAI) to be built with the aim that Indonesia can carry out the process of processing bauxite into a aluminum so that in the future Indonesia will no longer depend on other countries.
In addition, there will be a ban on exports of raw materials and concentrates in 2023, encouraging project owners to complete the SGAR Mempawah construction project as soon as possible.
After previously having a long discussion regarding the work on the project, a joint agreement was just made between the Chalieco Consortium to continue the work after several mediation agreements were made.
This process is due to the support and attention of the Deputy Attorney General's Office for Civil and State Administration. Thus, it is hoped that the re-implementation of the project can run smoothly and be completed according to the agreed time.
Bakhtiyar Efendi as Corporate Secretary of PTPP said, "The project workers have returned to their activities at the Alumina Mempawah Smeller Development Project following the signing of the Mediation Minutes between Chalieco and PTPP as implementing contractors which were witnessed directly by the Jamdatun as mediators.
"The re-implementation of this project work is certainly expected to have a positive impact on economic growth in the Mempawah area, West Kalimantan. In addition, the project is expected to absorb labor from the local community so that a harmonious relationship exists between the implementers and the surrounding community," said Bakhtiyar Effendi.
According to him, not only did it have a positive impact on the absorption of local workers in the Mempawah area, the construction of the smelter project also succeeded and supported the Indonesian government's program through Project Owners (PT BAI) not to export raw materials and concentrate.
"With the continuation of the project, PTPP is committed to continuing and completing the SGAR Mempawah development project in accordance with the time set with ”," added Bakhtiyar Efendi.
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