Industry Ministry Formulates Bauxite Downstream Strategy

TEMPO.CO, Jakarta - The Ministry of Industry on Tuesday presented the government’s strategy aimed at downstream the bauxite industry, which comes after the announcement that Indonesia will start to ban bauxite ore exports on June 2023. 

Director General of Metal, Machinery, Transportation Equipment and Electronics Industry Taufik Bawazier hinted that the ‘road map’ for the industrial downstream will be completed by the end of December. 

“We have the bigger picture and the key is to find the proper investment. We want to avoid investments that will become a predator to an existing industry,” said the director general at the Industry Ministry headquarters on December 28. 

The Ministry of Industry does not intend to make way for large-scale investment that would only shut down industries that have met national needs. This, he said, also applies to plans to downstream all commodities.

“This will apply to every sector. That is what we are communicating with neighboring Ministries so it can become a strategic policy to strengthen every product, including bauxite,” said Taufik.

Ia menuturkan dengan adanya hilirisasi, pada dasarnya 4 juta ton bauksit dapat diolah menjadi 2 juta ton alumina atau 1 juta aluminium. Artinya, ucap Taufik, jika diolah di dalam negeri, akan ada peningkatan nilai tambah hingga berkali lipat. Karena itu Kemenperin akan menghitung dari sisi permintaan atau kebutuhan terhadap bauksit dan juga dari sisi suplai.

By implementing a downstream on bauxite processing, 4 million tons of bauxite can be processed into 2 million tons of alumina or 1 million aluminum. According to him, this means that there will be a significant increase in added value if processed domestically. Therefore, the Ministry of Industry will calculate from the demand side or need for bauxite and also from the supply side.

RIANI SANUSI PUTRI

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