The Statistics Indonesia (BPS) stated that the mineral downstreaming policy through smelting and processing facilities in West Sumbawa, West Nusa Tenggara, has the potential to boost long-term economic growth.
"The two mining companies in the area have hired a significant number of workers and boosted the economy in West Nusa Tenggara," said Wahyudin, Head of BPS West Nusa Tenggara, in Mataram on Tuesday.
Wahyudin explained that if the smelter facility owned by PT Amman Mineral Nusa Tenggara is able to process not only mining products from West Sumbawa but also from other regions, the economic impact would be even greater.
He cited the example of the nickel smelter in Bantaeng, South Sulawesi. Although the region does not have nickel mines, the smelter is able to process nickel produced from other areas.
"NTB already has mines and a smelter, so why not take advantage of resources from other areas? That’s what we are developing," said Wahyudin.
He further explained that the establishment of a smelter in a region has a multiplier effect on the local community, such as the proliferation of restaurants, accommodations, and transportation services.
Although there has been a decline in revenue from concentrate exports, the smelter that processes raw materials into higher-value products can increase the added value of natural resources. This, in turn, impacts the increase in regional income from the mining sector.
Local governments receive taxes and levies from the smelter's operations, as well as royalties and profit-sharing from natural resources.
"The smelter is still targeting some market share overseas, which will later affect state revenue," Wahyudin added.
Statistics Indonesia (BPS) reported that the export value of West Nusa Tenggara Province in November 2024 experienced a sharp decline of 97.78 percent compared to October 2024 due to the cessation of concentrate exports by Amman Mineral.
In November 2024, the export value of commodities from West Nusa Tenggara amounted to just USD 5.56 million, supported by the export of fish and shrimp worth USD 2.87 million or 51.67%, fruits worth USD 1.12 million or 20.08%, and jewelry worth USD 900,254 or 16.19%.
