Nickel Metal Industry Exports USD 7.08 billion, an increase of 47.5%
The government continues to encourage increased value added of mineral raw materials in the country. This downstream policy is believed to be able to contribute significantly to the national economy, including through the achievement of export values.
"So, the important role of the smelter industry. So, we no longer only export 'land and water', but have become a high-end product, "said the Director General of Resilience, Territoriality and International Industrial Access (KPAII) of the Ministry of Industry, Dody Widodo in Jakarta, Friday (7/8 ).
The Director General of KPAII explained, in an effort to spur the competitiveness of the base metal industry, the government has issued Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, which mandates increasing added value through processing mineral resources.
"So that the exported products have added value which is much higher than the export of mineral products from mining products," he said. In addition, the government has also issued Law No. 3 of 2014 concerning Industry, which was revealed in the formation of implementing regulations in the form of Government Regulation Draft (RPP) on Natural Resources.
The implementation of these regulations, among others, regulates the efficient, environmentally friendly and sustainable use of natural resources. Then, emphasize the prohibition or limitation on the export of natural resources in the context of increasing industrial added value in order to deepen and strengthen the domestic industrial structure, as well as guarantee the availability and distribution of natural resources for domestic industries.
"Today, the nickel smelter industry that produces NPI, ferronickel, nickel hydrate and stainless steel has grown rapidly. Until now, around 19 smelters have been operating in East Java, Banten, South Sulawesi, Central Sulawesi, Southeast Sulawesi and North Maluku, "said Dody. In fact, some are already in the process of constructing a nickel smelter that processes low grade nickel into battery raw materials, located in Central Sulawesi, North Maluku and Banten.
"Based on BPS data, in 2018 and 2019, the export value of nickel-based metal industrial products reached USD 4.8 billion and USD 7.08 billion, respectively, an increase of 47.5%," he said.
The large contribution of the nickel smelter industry, continued Dody, needs to be encouraged for the development of its downstream products. "It is hoped that the nickel smelter will not only export in the form of NPI and raw materials for batteries, but also in the form of downstream products such as downstream products made of stainless steel and electric batteries," he added.
Seeing the potential role of the nickel smelter industry in the country, the Ministry of Industry expressed his appreciation for the formation of the Indonesian Nickel Forum (FINI). "It is hoped that the domestic nickel smelter industry can play an increasingly important role in the development of the base metal industry and downstream nickel products," said Dody.
Chairman of FINI Alexander Barus said that the forum has gathered 23 nickel smelter industries in Indonesia with a total installed capacity of 3.79 million metric tons of NPI per year and 0.8 million metric tons per year or nearly 90% of the national smelter capacity. "At FINI there are also several nickel mining companies and their derivatives that have begun to join forces," he said.
Alex said that the smelter industry has proven its significant contribution to the national economy. "Last year, exports were around USD 7 billion. This year it is projected to penetrate USD8-10 billion. So, in addition to being beneficial for the country's foreign exchange earnings, it can also reduce the trade balance deficit. In addition, the investment to date has reached USD15-16 billion, ”he explained.
Therefore, in maintaining business continuity, FINI hopes that the government can provide easy permits and create a conducive investment climate. "We want the smelter industry to have synergy with the downstream industry. Hence, FINI can be a productive partner with the government. So, our goal to build nickel products, especially high-tech downstream products, can be quickly implemented, ”he explained.
Director of Industrial Zoning at the Directorate General of KPAII at the Ministry of Industry, Ignatius Warsito, stated that the government has made efforts to facilitate spatial planning in the development of integrated industrial estates. For example, outside Java, the area will focus on natural resource-based industries.
"One of them is the Morowali Industrial Zone in Central Sulawesi which is devoted to the nickel-based metal industry," he said. The thematic concept in each area is in accordance with the competence in the region. Similar industrial groupings can also benefit the company.
Currently there are 118 industrial estates in Indonesia, with a total land area of around 51 thousand hectares. A total of 81 areas with an area of 36 thousand hectares are on the island of Java. The rest are scattered in Sumatra, Kalimantan and Sulawesi. By the end of 2020, the Ministry of Industry is targeting the number to increase to 156 industrial areas with a land area of 65 thousand hectares.
"So, the important role of the smelter industry. So, we no longer only export 'land and water', but have become a high-end product, "said the Director General of Resilience, Territoriality and International Industrial Access (KPAII) of the Ministry of Industry, Dody Widodo in Jakarta, Friday (7/8 ).
The Director General of KPAII explained, in an effort to spur the competitiveness of the base metal industry, the government has issued Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, which mandates increasing added value through processing mineral resources.
"So that the exported products have added value which is much higher than the export of mineral products from mining products," he said. In addition, the government has also issued Law No. 3 of 2014 concerning Industry, which was revealed in the formation of implementing regulations in the form of Government Regulation Draft (RPP) on Natural Resources.
The implementation of these regulations, among others, regulates the efficient, environmentally friendly and sustainable use of natural resources. Then, emphasize the prohibition or limitation on the export of natural resources in the context of increasing industrial added value in order to deepen and strengthen the domestic industrial structure, as well as guarantee the availability and distribution of natural resources for domestic industries.
"Today, the nickel smelter industry that produces NPI, ferronickel, nickel hydrate and stainless steel has grown rapidly. Until now, around 19 smelters have been operating in East Java, Banten, South Sulawesi, Central Sulawesi, Southeast Sulawesi and North Maluku, "said Dody. In fact, some are already in the process of constructing a nickel smelter that processes low grade nickel into battery raw materials, located in Central Sulawesi, North Maluku and Banten.
"Based on BPS data, in 2018 and 2019, the export value of nickel-based metal industrial products reached USD 4.8 billion and USD 7.08 billion, respectively, an increase of 47.5%," he said.
The large contribution of the nickel smelter industry, continued Dody, needs to be encouraged for the development of its downstream products. "It is hoped that the nickel smelter will not only export in the form of NPI and raw materials for batteries, but also in the form of downstream products such as downstream products made of stainless steel and electric batteries," he added.
Seeing the potential role of the nickel smelter industry in the country, the Ministry of Industry expressed his appreciation for the formation of the Indonesian Nickel Forum (FINI). "It is hoped that the domestic nickel smelter industry can play an increasingly important role in the development of the base metal industry and downstream nickel products," said Dody.
Chairman of FINI Alexander Barus said that the forum has gathered 23 nickel smelter industries in Indonesia with a total installed capacity of 3.79 million metric tons of NPI per year and 0.8 million metric tons per year or nearly 90% of the national smelter capacity. "At FINI there are also several nickel mining companies and their derivatives that have begun to join forces," he said.
Alex said that the smelter industry has proven its significant contribution to the national economy. "Last year, exports were around USD 7 billion. This year it is projected to penetrate USD8-10 billion. So, in addition to being beneficial for the country's foreign exchange earnings, it can also reduce the trade balance deficit. In addition, the investment to date has reached USD15-16 billion, ”he explained.
Therefore, in maintaining business continuity, FINI hopes that the government can provide easy permits and create a conducive investment climate. "We want the smelter industry to have synergy with the downstream industry. Hence, FINI can be a productive partner with the government. So, our goal to build nickel products, especially high-tech downstream products, can be quickly implemented, ”he explained.
Director of Industrial Zoning at the Directorate General of KPAII at the Ministry of Industry, Ignatius Warsito, stated that the government has made efforts to facilitate spatial planning in the development of integrated industrial estates. For example, outside Java, the area will focus on natural resource-based industries.
"One of them is the Morowali Industrial Zone in Central Sulawesi which is devoted to the nickel-based metal industry," he said. The thematic concept in each area is in accordance with the competence in the region. Similar industrial groupings can also benefit the company.
Currently there are 118 industrial estates in Indonesia, with a total land area of around 51 thousand hectares. A total of 81 areas with an area of 36 thousand hectares are on the island of Java. The rest are scattered in Sumatra, Kalimantan and Sulawesi. By the end of 2020, the Ministry of Industry is targeting the number to increase to 156 industrial areas with a land area of 65 thousand hectares.
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