Chairman Of Kadin Arsjad Rasjid: Prohibition Of Bauxite Ore Exports Needs Clear Hilirization Roadmap Support

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid expressed his support for the government's plan to stop the export of bauxite ore starting June 2023. Arsjad said that the policy to ban the export of bauxite ore was in accordance with the mandate of the latest Minerba Law, namely Law no. 3 of 2020.

Arsjad also said that the ban on exporting nickel and bauxite ore was not merely without reason, but needed to be done to increase added value to natural resources in Indonesia.

"If we only export raw materials, we are actually disadvantaged. That is our right as a nation to have added value. So indeed this step was carried out by the government on the previous scheme and also to encourage domestic industrialization," said Arsjad in an official statement, Tuesday, December 27.

He continued, the policy to prohibit the export of bauxite ore will be more accelerated if it is supported by a clear downstream roadmap, not just building as many smelters as possible without having direction and purpose.

Just so you know, currently the smelter or processing and refining plant for bauxite ore is located in Central Sulawesi-Tenggara, East-South Halmahera, Galang Batang, Bintan Island, and West Kalimantan.

He also hopes that the downstream of bauxite will run like nickel which is integrated from upstream to downstream to actually produce high added value and not just semi-finished goods.

Arsjad believes that downstreaming will also accelerate the processing of bauxite to become ingot aluminum products by 2025 will have an impact on the national economy through downstreaming of bauxite, light industry, and environmentally friendly modern logistics.

"Aluminum ingot is very much needed by domestic industries, such as plates, billets, screens, and profile forms needed in industries such as aircraft, ships, automotives, and construction," concluded Arsjad.

For your information, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that there are currently 4 units of installed smelters for bauxite ore in Indonesia with an alumina processing capacity of 4.3 million tons annually.

"In addition, in the development stage, the input capacity is 27.41 million tons and the production capacity is 4.98 million tons or close to 5 million tons," said Airlangga in Jakarta, Wednesday, December 21.