Jakarta, CNBC Indonesia – The Minister of Investment or Head of the Indonesian Investment Coordinating Board (BKPM), Bahlil Lahadalia, made a surprising statement. That the construction of mineral processing and refining facilities (smelters) will be limited.
Minister Bahli stated that in the future his party will place restrictions on the construction of smelters that are not green energy oriented. “This is a form of the government’s concern in carrying out arrangements for the development of products that are oriented towards green energy and green industry,” explained Minister Bahlil when met at the State Palace, Friday (13/1/2023).
As a detail of the restrictions on smelter construction, Bahlil explained that currently the product from smelters, especially nickel ore, is Nickel Pig Iron (NPI). Where, the NPI is included in the category pioneer.
Bahlil revealed that currently Indonesia has been flooded with NPI products. Hence, his party will rearrange the smelter policy because it is said that there are not many nickel resources or reserves.
“There has to be a balance between the smelter we want to build and the existing reserves of raw materials. So, now we are pushing for the downstream sector with an added value of 80%,” he said.
In this way, said Bahlil, the smelters whose construction will be limited are smelters whose downstream products have only reached 40%. “We will rearrange it, we will break it down later. We will discuss the technical rules later,” said Bahli.
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