JAKARTA - President Joko Widodo asked anyone who is the leader of Indonesia not to return policies to export raw materials abroad.
"Whoever the leader, president, consistency must be maintained and we continue to improve. Don't return to raw exports again, be careful, we all have to remind," said President Jokowi in Jakarta, quoted from Antara, Tuesday, October 11.
President Jokowi conveyed this when opening the XII Congress of the Veterans Legion of the Republic of Indonesia (LVRI) and the XI National Conference of the Veterans of the Republic of Indonesia (PIVERI) in 2022.
"Even though we are being sued. If we are being sued and we withdraw again, when else can we enjoy the commodities and wealth that we have?," said Jokowi.
The President said that three years ago the government set a policy to stop exporting raw nickel, then Indonesia was sued by European Union countries to the World Trade Organization (WTO).
"Until now it has not been completed because we stopped. According to the rules, they said they were not allowed to, yes, if we are sued then we are afraid and don't dare to keep going, right, it's continuous as it used to be, raw and then what we export, sue, we face the lawsuit, we can win, we can lose," explained the President.
President Jokowi also said that the attitude to process natural resources in the country is a consistent policy of the Indonesian government.
"Next year, stop tin, next year stop copper, because the added value is in the country. I gave an example of time for nickel to be exported in raw form, we only get a value of Rp. 15 trillion after being exported in semi-finished form and goods so the value becomes Rp. 360 trillion, up from Rp. 15 trillion to Rp. 360 trillion, only one item," said the President.
Another example is the takeover of the majority stake in PT Freeport Indonesia through the Mining BUMN Holding MIND ID or PT Inalum (Persero).
"I need to convey to seniors that the elders that Freeport now belongs to Indonesia, not to American companies anymore because previously we were only given 9.3 percent, for three years we negotiated very toughly and we are now holding a majority stake of 51 percent," added the President.
The President admitted that he did not previously want to visit PT Freeport Indonesia because the company does not belong to Indonesia.
"But now I'm going to Freeport because it's clearly ours, it belongs to our SOEs, which means it belongs to the Indonesian government and also what I'm happy about, I checked there, I heard a lot of employees are Caucasians, answered 'No sir, now 98 percent is Indonesia', and what I'm happy about 40 percent is Papua, Papuan people," said the President.
This means, according to President Jokowi, that there is a technological and economic transformation.
"I just realized when I entered there, I only realized that this was a big economic transformation. If this is consistent, we will continue to do it, without fear of being sued, the added value will jump," said the President.
Based on the calculation of the Minister of Finance Sri Mulyani, quoted by the President, with Freeport Indonesia's share ownership of 51 percent, the government received taxes, Non-Tax State Revenue (PNBP), export duties, larger dividends so that after a total of 70 percent of Freeport's revenue went to the state treasury.
"Then also the Rokan Block, this is oil and gas which has been controlled by Chevron for 97 years. Now it is also 100 percent owned by ourselves. I haven't checked there, if there is a right time I want to check whether there is an increase in production, an increase in 'income' from this kind of diversion," said the President.
President Jokowi believes that the takeover of the Rokan Block can also support Indonesia's target by 2030 to become a country with the world's 7th largest "Gross Domestic Product".
"And at the time of (yearly) Indonesia's golden count, we have entered 4th or 5th in the world, as long as we continue to maintain this consistency. Whoever the leader will be," said the President.
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17 November 2024, 01:40