Bauxite Employers Association Asks Bahlil To Solve Investor Problems For Smelters

Illustration (Photo: Doc Antara)

JAKARTA - Acting Chairman of the Indonesian Bauxite & Ore Entrepreneurs Association, Ronald Sulistyanto hopes that the change of Minister of Energy and Mineral Resources (ESDM) from Arifin Tasrif to Bahlil Lahadalia can bring fresh air to bauxite entrepreneurs.

Ronald said, currently bauxite entrepreneurs are facing several problems such as the absence of investors who want to invest in the construction of bauxite smelters.

"Hilirization can run if there are 2 components to bekerj the same. If the equity (core capital) is only for Indonesian entrepreneurs, I don't think it is strong. 1.2 billion US dollars is borne by yourself," he said in the Mining Zone, Tuesday, August 20.

He continued, even if you get funding from the bank, a syndicate is also needed. According to him, currently the only investors available are those from China.

He reasoned that entrepreneurs and capital owners from China know better what Indonesian bauxite entrepreneurs are working on.

"If we have been to Europe, especially the US, there is going green and green energy. Our proposal will not be included. The most likely to enter is CHina," continued ROnald.

However, when investors from China were about to flock to Indonesia and carry out due derivatives, they still found several problems, one of which was Indonesian regulations that had changed.

"This is actually what entrepreneurs want is government guarantees. Even Himbara doesn't dare to invest in smelter projects, let alone from outside?," Ronald continued.

For this reason, he hopes that Bahlil can help convince investors to enter and invest in the construction of bauxite smelters so that downstreaming can run well.

"Hopefully Mr. Bahlil will bring new energy and he is excited that we will be excited, this will be something because entrepreneurs need to be fostered, not fostered. If entrepreneurs are strong, the country will be strong," he concluded.