The Ministry of Industry has targeted a total investment in the base metal industry of US$ 340.6 billion (IDR 5,353 trillion) by 2029.
Director General of Metal, Machinery, Transportation Equipment and Electronic Industry at the Ministry of Industry, Taufiek Bawazier, noted that the largest mineral investment potential is the bauxite processing industry which reaches US$ 270.3 billion (IDR 4,248 trillion).
“We have seen that the investment target for the mineral processing industry in the future is very high to enter the downstream program,” Taufiek said on Tuesday, March 19, 2024.
Currently, there are three projects that can be developed, such as investment in bauxite in the development of smelter grade alumina, creation of aluminum ingot production facilities and aluminum extrusions.
Furthermore, the largest potential investment will come from the nickel processing industry worth US$ 51.7 billion. This investment will all be used for the development of class I nickel products and advanced nickel processing.
There are at least five types of products that can be developed through this investment. Such as mixed nickel-cobalt hydroxide precipitate, nickel matte, nickel plate, nickel sulphate, and cobalt sulphate.
Apart from that, the government also invested in the copper processing industry of up to US$ 18.6 billion. This fund will later develop copper cathodes, copper rods and copper wire.
Taufiek believes that the government must be able to invest in the appropriate mineral industry. This is important so that downstreaming in the mineral industry can take place completely.
“The direction of this investment must be determined by all stakeholders. So, if there is incoming investment, then Investment Coordinating Board (BKPM) will accompany that investment into the empty part of the industrial tree,” he said.
He assessed that investment in the upstream mineral processing industry is currently quite saturated, therfore advising the government to direct investment in the downstream mineral processing industry.
However, in Indonesia there is still a deficit of several downstream mineral products in the country, such as hot rolled steel, cold rolled steel, and even food equipment.
“It would be better for the government to present a cake called an industrial tree to investors. Technocratically, this is downstreaming that is advanced and fundamentally strong,” he said.
