Downstream Industry to Make Indonesia Onward

22 June 2023

The President of the Republic of Indonesia, Joko Widodo (Jokowi), accompanied by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, directly observed the progress of the construction of the PT Amman Mineral Nusa Tenggara (AMNT) smelter located in West Sumbawa Regency, West Nusa Tenggara Province (West Nusa Tenggara).

 

During the visit, President Jokowi reiterated the importance of industrial downstream to realize Indonesia Onward. "I just want to ensure that the progress is according to plan and will be completed by the middle of next year," said President Jokowi.

 

The President's statement is based on the results of the latest verification of the progress of the PT AMNT smelter construction carried out by the investment team and the Ministry of Energy and Mineral Resources, which has reached 51.63 percent; the President is confident that the construction of this smelter can be completed according to the set target. "God willing, in the middle of 2024, it will be finished," hoped President Jokowi.

 

Furthermore, President Jokowi also hopes that industrialization can be conducted on the resulting copper cathode derivatives to provide added value and as many jobs as possible.

 

The President also said it would provide the maximum added value to the domestic economy when the construction of the smelter had been completed and is ready to produce - whether it comes from nickel, copper, bauxite, or tin.

 

"Both in the form of export value, as well as opening up as many jobs as possible," said President Jokowi.

 

In addition, continuing his visit after the mineral refining factory (smelter) of PT AMNT, President Jokowi and his entourage visited PT Freeport Indonesia's processing and refining factory (smelter) construction project in Gresik Regency, East Java.

 

During the visit, the President emphasized that the smelter construction is the foundation for Indonesia to become a developed country. Several smelter factories in the country will increase Indonesia's competitiveness and change the economy's dependence from consumption to the production sector.

 

"This smelter is the foundation for us to become a developed country because from what we are relying on consumption, we are now relying on production," said President Jokowi in Gresik Regency, East Java, Tuesday (20/6).

 

President Jokowi also encouraged production from the smelter factory to be integrated with the results of other mining commodities spread across various regions in the country. Starting from nickel in Sulawesi, bauxite in Bintan and West Kalimantan, tin in Bangka Belitung, to copper foil in Gresik.

 

"It will be integrated into an EV battery, lithium battery, and that will be integrated again into an electric vehicle," said President Jokowi.

 

Meanwhile, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, who was also present to accompany the President of the Republic of Indonesia on this visit, asked PT Freeport Indonesia (PTFI) to speed up the PTFI smelter construction process so that it can be completed according to the target.

 

"We asked for it to be completed in May 2024, hence for PT Freeport Indonesia & Mr Tony, this becomes a challenge by adjusting to make the project can be accelerated by 2024 according to the existing targets," said Arifin.

 

The construction of the smelter by PTFI is a form of supporting the Government's downstream policy. The Manyar Smelter is the second smelter owned by PTFI after the first smelter was built by PTFI in 1996 and is managed by PT Smelting.

 

Previously after visiting the PTFI smelter construction site, the Vice President (Wapres) of the Republic of Indonesia, K.H. Ma'ruf Amin, was optimistic that the construction of the largest single-line smelter plant in the world could operate in May 2024 as planned to process PT FI's concentrate production.

 

"The Government, in the context of developing its industry, is carrying out downstream, and the smelter construction is an implementation of downstream. Hence, I visited PT Freeport Indonesia's smelter," said Vice President Ma'ruf.

 

The construction of PTFI's second smelter, continued by Vice President Ma'ruf, is the pride of the Indonesians because it is the largest smelter in the world by processing up to 1.7 million tonnes of concentrate from PTFI. Meanwhile, PT Smelting is capable of processing 1.3 million tons. "Overall, we can manage 3 million tons of concentrate," continued Vice President Ma'ruf.

 

"I am optimistic that the work can be completed according to the target; in fact, how many have been planned to be achieved and exceeded 2% of what has been targeted. This means that the target for May 2024 I hope that it can be advanced earlier because there are already parts that have been completed earlier, I am optimistic resolved," added Vice President Ma'ruf.

 

With the currently achieved target, it is hoped the completion of the smelter's physical construction can be completed by the end of December 2023, followed by pre-commissioning and commissioning until May 2024 with operational ramp-up expected to reach full operation by the end of 2024.

 

http://www.neraca.co.id/article/181675/hilirisasi-industri-wujudkan-indonesia-maju

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