JAKARTA - President Joko Widodo (Jokowi) has asked for maximum industrial downstreaming. This is in order to cut off the export of raw materials which has become a habit of Indonesia since 400 years ago.
This habit, he continued, must be stopped because the state does not get anything from the export of raw materials.
"Since the VOC era 400 years ago, we sent raw materials until now they are also raw. We have to stop, stop, stop. We can't get anything," said Jokowi when opening the TNI-Polri Rapim event at TNI Headquarters, Tuesday, March 1st.
Jokowi said Indonesia often exports raw agricultural and mining commodities abroad. However, this step prevented the country from getting added value, so he decided to prohibit the shipment of raw goods abroad.
"We have to get added value, we have to get added value. Therefore, in 2020 I have said to stop nickel. No more exports of nickel, nickel raw materials. Stop. The shipment must be at least half-finished, then later on it must be finished goods," he stressed.
"What is the added value? There are big job opportunities in Indonesia, the tax is paid in Indonesia, the export duty is paid in Indonesia, VAT is paid in Indonesia, PNBP is in Indonesia, we can all get it there," added the former Governor of DKI Jakarta.
Jokowi said that such a move was met with opposition from many parties. For example, Indonesia has the potential to be sanctioned by the European Union for banning the export of nickel raw materials.
However, this kind of step needs to be taken so that Indonesia can get added value from various processing of raw materials. "If we have stopped nickel 2020 this year, we will stop it again. Stop bauxite, bauxite will turn into alumina, stop bauxite, next year stop copper, copper mixed with nickel," said Jokowi.
"So that the added value was in the country, this is what we call economic transformation," he concluded.
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