Meeting With DPR, Inaplas Proposes Releasing Industrial Salt Imports Postponed By 10 Years

RDP Commission VII DPR RI together with the Directorate General of IKFT of the Ministry of Industry at the Parliament Complex, Senayan, Jakarta, Wednesday, November 12. (Theresia Agatha/VOI)

JAKARTA - The Association of Indonesian Olefin, Aromatics and Plastic Industries (Inaplas) proposed the relaxation of industrial salt imports which are rumored to be stopped in 2027. Industrial salt imports are still needed for the Chlor Alkali Plant (CAP) industry which is currently being built.

Deputy Chairperson of Inaplas Edi Rivai said that currently one of the petrochemical industries is building a CAP facility with an investment of IDR 15 trillion and the development progress is 36 percent.

The factory in question is the Chlor Alkali-Ethylene Dichloride (CA-EDC) chemical factory which will be built by PT Chandra Asri Pacific Tbk. (TPIA) and is targeted to start production in the coming 2027.

"We are constrained by the existence of policies that of course we must respond together regarding the supply of raw materials, industrial salt for alkali chlor, considering that there are only limits until 2027 to get local salt," said Edi in a Hearing Meeting (RDP) with Commission VII DPR RI at the Parliament Complex, Senayan, Jakarta, Wednesday, November 12.

Edi emphasized that his party supports the government's efforts to achieve self-sufficiency in salt. However, local salt production in accordance with industrial needs is still minimal.

Meanwhile, local salt is said to have a level of salt impurity which includes calcium (Ca) and magnesium (Mg) components which are still too large, while the industry needs salt with high Sodium Choride (NaCl) content of above 97 percent.

"Of course we support this self-sufficiency. However, we must ensure that the first is quality, then quantity and price," said Edi.

The government targets the independence of national salt through Presidential Decree No. 126 of 2022. This regulation has begun to cut the quota for salt imports for the alkali chlor industry to prohibit imports for pharmaceuticals and various foods.

"In the near future, we really hope that the chairwoman will provide relaxation for salt importation for this alkali plant chlor for at least 10 years until the self-sufficiency can be achieved with the above grade," he added.

Previously, the Ministry of Maritime Affairs and Fisheries (KKP) had several strategies to achieve the salt self-sufficiency target in 2027.

The Director General of Marine Management and Marine Space of the KKP Koswara said that the KKP had prepared a number of strategies to achieve this target.

Koswara said the first strategy was the construction of a salt industrial center area in Rote, East Nusa Tenggara (NTT), covering an area of 13,000 hectares (ha). He said that in the calculation, assuming 200 tons of salt can be produced per hectare, domestic salt production can increase to 2.6 million tons.

In addition, the KKP also made a modeling, in which a 2,000 ha industrial zone was built, while the rest was developed by the private sector.

"Then through the intensification of salt existing land, ponds, it was also driven by an increase in salt of around 30 percent," he said.

He said the target of completely stopping salt imports in 2027 applies to all types. Currently, said Koswara, Indonesia has self-sufficiency in consumption salt considering the qualified supply from within the country.

"What is still imported is industrial salt. It is used for the CAP (Chlor Alkali Plant) industry, for the food and pharmaceutical industries. Actually, those imported are for domestic consumption have actually been fulfilled with the existing ones," said Koswara.