TEMPO.CO, Jakarta - I Gusti Putu Suryawiryawan, Director General of Metal, Machinery, Means of Transportation and Electronics, the Industry Ministry, said that smelting industry are developing nicely in Indonesia. Some 32 smelter projects are currently running with a total investment of USD18 billion.

“The investment is estimated at USD18 billion and absorbed around 28,000 workers,” Suryawirawan said in Makassar yesterday.

According to him, since the enactment of Law No. 4 of 2009 on Mineral and Coal Mining, 32 smelter projects have developed in the archipelago. Some 22 smelting companies have joined the Processing and Smelting Companies Association (AP3I) and 75 percent have operated commercially. The Industry Ministry continues to push smelter industry to contribute to local and national development and economic growth.

Suryawirawan said that industrial sector contributed 18 percent to national growth in 2016. Smelting industry is included in the government’s downstreaming program. “In metal resources, Indonesia is in the world’s top ten with abundant bauxite, nickel and copper reserves,” he said.

He went on to say that smelting industry is the most energy and capital intensive which is expected to boost national economy. “Support from the government and provision of incentive are imperative in a bid to boost the industry’s growth,”

He said that the ministry is mainly focusing on developing nickel and stainless smelting industry steel in particular in eastern regions of Indonesia. Among the ministry’s top priority is Morowali Industrial Park in Central Sulawesi which is operated by PT Indonesia Morowali Industrial Park (PT IMIP).

Suryawiryawan also said that Morowali Industrial Park stood on 2,000 hectares of land and expected to draw USD6 billion investment or roughly Rp78 trillion. “The area will need 20,000 employees and 80,000 indirect employees,” he added.

DIDIT HARIYADI