Jakarta –
President Joko Widodo (Jokowi) will ban the export of raw mining goods. The plan, Jokowi will ban the export of bauxite and copper.
In line with that, Jokowi encourages downstream to provide added value. So, will this downstream be realized with the export ban?
President Director of PT Freeport Indonesia Tony Wenas explained, in Law Number 3 of 2020 it was stated that processing and refining obligations must consider two things, namely increasing economic value and market availability.
“So if there really is a domestic market, it’s clear that there must be a domestic process so that the raw materials are here. But right now which chicken and egg comes first, do the downstream products provide new raw materials first waiting for the industry to enter, or the industry to enter first, ” he explained in the CNBC Indonesia Economic Outlook 2023, Tuesday (28/2/2023).
According to Tony, synergies or integrated efforts are needed to realize downstream.
“So it can’t be the mining company or the one that regulates mining issues and then doesn’t coordinate industrial issues, this must also make an industrial roamdmap which is like what goes together with the downstream program,” he explained.
He continued, when the road downstream program, the downstream industry must also be ready. He also gave an example like Freeport where currently the smelter progress is around 55%.
“For example, we are now making progress with a smelter of 55%, 54.5% as of the end of January now, maybe at the end of February there can be an additional 3-5%. This is the continuation of the business will see the smelter wants to be, progress has been made, not just certia. Just tell me,” he explained.
Watch Video “Freeport’s support for RI’s Economic Transformation“
(acd/zlf)
