ERHAPI supports Indonesia to continue nickel downstreaming
16 Sep 2022, 09:44 AM
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The Indonesian Association of Mining Experts (Perhapi) affirmed their support for the Indonesian government to continue its downstream program amid the threat of a European Union lawsuit to the World Trade Organization (WTO). Perhapi Chairman Rizal Kasli said that whatever the WTO decision, Indonesia continues to optimize its resources for the advancement of domestic industry. "If Indonesia loses or has to reopen the nickel export tap, there are still many things that can be done so that downstreaming continues. Indonesia will not easily export nickel ore, which is currently the target of various countries," he said in a statement in Jakarta on Tuesday. Rizal revealed that Indonesia was given an excess of existing resources, so that the potential must be used optimally for the progress of the nation and state. According to him, if the government has signaled that it will increase tariffs on ore exports, it is only one way for ore exports to be unattractive or unprofitable and there are still several other steps that can also be taken by the government. "Whatever the WTO decision will be, the most important thing that must be maintained is the certainty of the current investment. The government must secure the nickel ore supply chain against industries that have been and will grow, namely smelters and refineries," rizal said. In addition to increasing export tariffs, the government can also regulate the amount of production through the Work Plan and Budget (RKAB) of mining permit holders. The Ministry of Energy and Mineral Resources can limit production in order to maintain the life of domestic nickel reserves. In addition, said Rizal, as has been done in coal, the government can also implement Domestic Market Obligation (DMO) obligations for nickel mining production permit holders. This must be done to ensure that the needs of the country can be met. Nickel downstreaming that has been running should get a guarantee that the plant will not be in short supply. "These policies will boil down to exports becoming unattractive, and industries that have grown will certainly continue to grow. On the other hand, economically, industries that are close to raw materials will be more profitable," explained Rizal. Rizal said that the demands of the European Union must also make the government aware of the certainty and convenience of investing. Indonesia, has issued various permits to investors, but in its implementation there are still many obstacles in the field. Not infrequently, the permits that have been issued cannot be implemented because there is no support in the regions. Legal certainty of permits is sometimes a question in itself. "We already live in a world without borders, so every investor can choose wherever he will invest. For this reason, the government must also improve and not just ban or tighten the export of raw materials," said Rizal. He said that the creation of an investment climate that is comfortable and safe and has legal certainty must be carried out. Synchronization and harmonization of the pusat and regions, the control of illegal mining, the ease and speed of managing permits, and the support of implementation in the field should be priorities. "In essence, investors are present because of comfort and desire, not compulsion," rizal said. Currently, the construction activities of nickel plants with pyrometallurgy technology are increasingly massive, on the one hand, causing concerns about high-grade nickel reserves. Based on the calculations of the Ministry of Energy and Mineral Resources, if further exploration is not carried out, and the reserves do not increase, the reserves will only be able to supply the needs of the plant for about seven years. If the export tap is opened, it is actually dangerous because it is related to the sustainability of the nickel-based industry which is already running well in Indonesia considering that nickel downstream activities have had a large multiplier effect in the form of increasing foreign exchange, increasing gross domestic income, employment, as well as state and regional revenues.Source: https://www.antaranews.com/berita/3114353/perhapi-dukung-indonesia-melanjutkan-hilirisasi-nikel
