Throughout 2017, 34 Smelter Investment Industry Project Reach Rp752 Trillion

INDUSTRY.co.id - Jakarta, the Ministry of Industry (Kemenperin) revealed, until 2017 there are 34 smelter industry projects with total investment reached Rp752, 62 trillion. The smelter industry consists of iron ore processing, nickel ore, bauxite ore, copper concentrate, stainless steel, and aluminum.

"Of the 34 smelter projects, able to absorb the workforce of more than 30 thousand people," said Director General of Metal, Machinery, Transportation and Electronics (ILMATE) Industries Ministry of Industry Harjanto in Jakarta (30/1/2018).

According Harjanto, to continue to encourage investment in the smelter industry sector, need support in the availability of raw materials. This is in accordance with the mandate of Government Regulation No. 41 of 2015 on the Development of Industrial Resources.

"So, there should be policies that support downstream and increase the added value of domestic raw materials, because otherwise, business actors would prefer to export our raw materials rather than actually build mineral processing facilities," he explained.

In addition, continued Harjanto, required the harmonization of the issuance of business licenses and the pattern and procedures for the development of the smelter industry. To that end, the Ministry of Industry seeks to address the issue of licensing dualism that is still complained of smelter industry players in the country.

"This licensing dualism is confusing to investors, so we will try to find a solution," he said.

Harjanto also conveyed that the business permit for metal processing and refining industry in the form of Industrial Business License (IUI) and Mining Business License of Purification Processing Production Operation (IUP OP Purification Processes) brought uncertain investment climate.

According to him, some smelter industries are required to have Mining Business License (IUP), whereas they only do processing and purification activities, and do not own mining land. "Well, they finally forced to make the IUP," said Harjanto.

Therefore, the Ministry of Industry requested the Association of Indonesian Processing and Refinery Industry (AP3I) to record the company and related issues in detail.

After that, continued Harjanto, the Ministry of Industry will discuss it at the level of the Coordinating Ministry for Economic Affairs to find appropriate solutions. "After the official data we receive, we will discuss at the level of Coordinating Ministry," he said.

Kemenperin noted that the total smelter capacity per year, namely smelter iron reaches 7.6 million tons (3 million tons of Krakatau Posco and 1.2 million tons of Krakatau Steel in Cilegon and 3 million tons of Dexin Steel in Morowali).

The alumina refinery is 2.3 million tons (1 million tons of Well Harvest Alumina Refinery, 300 thousand tons of Indonesia Chemical Alumina and 1 million tons of JV refinery / joint venture between PT ANTAM and PT INALUM) and 1 million tons aluminum smelter. Furthermore, nickel smelter 4.6 million tons and smelter stainless steel slab 2 million tons, and copper smelter 303 thousand tons.