Downstream Mining Indonesia Receives Up to US$ 33 Billion

Downstream Mining Indonesia Receives Up to US$ 33 Billion

Downstream mining in Indonesia is a kind of “money mine“. How could it not be, through downstream mining, especially downstream nickel, the realization of added value from the nickel sector reached US$ 33 billion or IDR 514.3 trillion in 2022.

This realization increased significantly from 2021 reaching US$ 20.9 billion, even from 2018-2019 which was only US$ 3.3 billion.

It didn’t stop there, Deputy for Coordination of Investment and Mining of the Coordinating Ministry for Marine Affairs and Fisheries, Septian Hario Seto, stated that in 2023, the added value of nickel downstream domestically could increase again, targeting to reach US$ 38 billion or Rp. 592.2 trillion (exchange rate of Rp. 15.000). 585 per US$) in 2023.

“(This year) around US$ 35-38 billion,” Seto explained to CNBC Indonesia when asked about the 2023 nickel downstream added value target, quoted on Wednesday (11/1/2023).

He also mentioned that the soaring target of nickel downstream added value was also triggered by the increase in the export volume of nickel derivative products. “Yes,” said Seto, when asked whether the target was also triggered by the increase in nickel export volume in 2023.

As is well known, President Jokowi banned the export of nickel ore abroad three years ago. The export ban activity was accompanied by the development of domestic downstream.

With the export ban, President Jokowi said that Indonesia had gained a significant jump in added value. From previously only around IDR 17 trillion to IDR 360 trillion in 2021.

“This is just nickel, yesterday we announced bauxite in December to stop as well starting in June 2023 and we will industrialize it domestically. I don’t know the jump, but it’s around Rp. 20 to Rp. 60 – Rp. 70 trillion,” said Jokowi.

Jokowi also revealed that with the ban on nickel exports abroad, Indonesia was sued by the European Union to the World Trade Organization (WTO). As is well known, Indonesia suffered defeat in the lawsuit.

Furthermore, to fight the defeat of the European Union’s lawsuit at the WTO over the nickel ore export ban, President Jokowi appointed a woman, namely the Indonesian Minister of Foreign Affairs (Menlu) Retno Marsudi not to be afraid to appeal.

“I told the Minister of Foreign Affairs (Retno Marsudi) not to back down,” said President Jokowi at the 50th Anniversary of the PDIP, Tuesday (10/1/2023).

He explained that the demands from the WTO were a scheme for Indonesia to follow the rules of the game made by big countries. He ensured that Indonesia would not be able to become a developed country if it continued to export raw materials.