Questioning The Impact Of The Bauxite Export Ban On Revenue, This Is Antam's Response

JAKARTA - The government officially banned the export of raw mineral bauxite on Saturday, June 10, 2023.

The policy to prohibit the export of bauxite is in accordance with Law Number 3 of 2020 concerning Mineral and Coal Mining (UU Minerba).

Antam's Director of Business Development, I Dewa Bagus Wirantaya, said the ban on bauxite exports would have an impact on his company.

However, his party has anticipated a ban on bauxite exports in two ways.

"For strengthening in the domestic market, currently there are limited number of smelters in Indonesia and we have anticipated this," Dewa said at a press conference in Jakarta, Thursday, June 15.

In addition to consumption itself, continued Dewa, his party already has a long-term contract with Borneo Alumunia Indonesia so that his party can optimize production capacity of up to 2 million tons this year.

In addition, continued Dewa, Antam also strengthened cooperation with BUMN from China, Chalco, to establish a Chemical Grade Alumina (CGA) smelter.

"We are currently exploring a plan for China's SOE cooperation to establish a chemical grade alumina smelter. And hopefully we can realize this and really give our bauxite added value," continued Dewa.

Present on the same occasion, Director of Finance and Risk Management Elisabeth RT Siahaan explained that the influence of export stopping on the company's income was still relatively small.

"We can convey that the contribution of bauxite in Antam has been relatively small and from the income side is below 3 percent," he said.

As a commodity of the future, he continued, although not conducting exports will not affect the company's overall performance in 2023.

"Our earnings from revenue are still golden and followed by nickel and ferronicles," continued Elisabeth.

Meanwhile, Antam President Director Nicholas D Kanter expressed his support for government policies even though it would later affect the company.

"We will fully support the policies outlined by the Ministry of Energy and Mineral Resources because we see that in a long way this is good for Indonesia and of course good for Antam," he concluded.