Minister Reveals Nickel Downstreaming Impact on Indonesian Economy
- Istimewa
Jakarta – The Ministry of Industry revealed that the downstream natural resource (SDA) program has had a positive impact on the Indonesian economy. One is increasing the income of Non-Tax State Revenue (PNBP).
The Indonesian Industry Ministry Spokesperson, Febri Hendri Antoni Arif said, based on Ministry of Industry data, there are 34 smelters that are already operating and 17 smelters under construction.
"The investment that has been invested in Indonesia is US$11 billion or around IDR 165 trillion for Pyrometallurgical smelters, and US$ 2.8 billion or close to IDR 40 trillion for three Hydrometallurgical smelters which will produce MHP (Mix Hydro Precipitate) as a battery raw material," Arif said in his statement on Thursday, August 14, 2023.
During the existence of the nickel smelter, it has absorbed around 120 thousand workers, "Judging from the location, the smelters are spread across various provinces, namely Central Sulawesi, Southeast Sulawesi, North Maluku and Banten."
Juru Bicara Kementerian Perindustrian (Kemenperin), Febri Hendri Antoni Arif
- Kemenperin
"This encourages economic growth in the region by increasing GRDP in the smelter location area," he said.
Arif said, based on the Ministry of Industry's calculations, the added value generated from nickel ore into downstream products increases many times over, if processed domestically or eliminates the raw goods process.
If the value of raw nickel ore is valued at US$ 30 / ton, when it becomes Nickel Pig Iron (NPI) the price will increase 3.3 times reaching US$ 90 / ton. Meanwhile, when it becomes Feronikel, it will increase 6.76 times or the equivalent of US $ 203 / ton, Arif explained.
According to him, if downstreaming continues by producing Nickel Matte, the added value will also increase to 43.9 times or US$3,117/ton.
"Moreover, if there is a battery factory that converts ore into LiNiMnCo, the added value can reach 642 times," he remarked.
He stated that with this, it would increase the income of PNBP and other taxes with a value of trillions of rupiah. Therefore, it has been proven that if Indonesia exports raw materials the figure is IDR 17 trillion, compared to the export of nickel downstream products which reaches IDR 510 trillion.
"So that state revenue from taxes will be much more increased,"
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