Great Stop Export Of Participated Materials, Minister Of Energy And Mineral Resources Make Sure There Are 17 Additional Smelters This Year

Illustration (Photo: Doc. Antara)

JAKARTA - The government is increasingly determined to carry out downstream programs in order to provide added value to natural resource products. Based on the plan, the government will stop bauxite exports in the form of ore (not yet processed) in June this year.

For this reason, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said, to optimize downstreaming, his party is targeting the addition of 17 mineral processing or smelter facilities in 2023.

"We are targeting that in 2023 there will be 17 more smelters that must be completed," Arifin said at a press conference in Jakarta, quoted on Tuesday, January 31.

He added that the Ministry of Energy and Mineral Resources is also trying hard to oversee the development target of 53 smelters by 2024.

"The 7 smelter project has been completed in 2022, namely, PT Aneka Tambang in Pomalaa, Kolaka, Southeast Sulawesi, PT Vale Indonesia in South Sulawesi, PT Wanatiara Persada in North Maluku, PT Fajar Bhakti Lintas Nusantara, PT Weda Bay Nickel in Maluku, PT ANTAM (P3FH project) in North Maluku and PT Sebuku Iron Laterotic Ores in South Kalimantan which is an iron smelter producing a sponge ferro alloy," he said.

Arifin menyampaikan, total kapasitas input bauxite tahun 2022 adalah 13,88 juta ton dan yang dimanfaatkan masih 4,3 juta ton per tahun.

"While we are still importing aluminum. The construction of smelting to process aluminum can be completed so that it can absorb the input capacity that we already have up to 100 percent and we don't import aluminum anymore, we can even export it," said Arifin.

Acting Director General of Mineral and Coal, M Idris Sisite who is also the Head of the Legal Bureau of the Ministry of Energy and Mineral Resources said, it has become an obligation for companies to build a smelter in processing mineral production in accordance with the provisions of Law No. 3 of 2020.

"What we are guiding is Law No. 3 of 2020 which firmly states that as of June 2023 it is no longer allowed to export in the form of an ore, so what we are doing is implementing provisions of laws that prohibit exports of ore, (obliged) to process them domestically," concluded Idris.