Government Should Encourage Downstream Mining Industry

INDUSTRY.co.id - Jakarta - Chairman of Indonesia Mining Institute (IMI) Irwandy Arif said that the government should push downstream of the mining industry before it is too late in its development.

"If you do not go downstream then it will be too late," said Irwandy in Jakarta, Wednesday (21/3/2018).

The reason for focusing on hilirisasi is the depletion of mineral deposits in Indonesia. He pointed out; coal reserves in Indonesia live 22 percent of the world's reserves, not too big as predicted.

The development of targeted smelters is also not too significant, all the many smelter development targets that stop on the road. Irwandy gives an illustration, especially for example in the nickel sector; many smelters are not developed as targeted.

"In addition to smelter developments, the problem is not to include reserves per company, or per corporation, all referring to national / global reserves, so that the detail of mineral reserves is uncontrollable," he said.

In addition, the downstream policy has been concerned only with value-added factors. This is a factor in the non-development of mining downstream.

Second, industrial development is not upstream; thirdly, there is still a relaxation of policy for export of mining products, especially nickel ore and bauxite.

He believes that the downstream policy will not change much in 2018. There is still a factor of added value, there is still relaxation, and there should be a permit from two Ministries, namely the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Industry in the issue of permits.

"Licensing should also be a concern, do not be an obstacle, must be considered by the government," he said. (Ant)