Smelter Development Hampered by Funding, Licensing Issues

TEMPO.CO, Jakarta - The Energy Ministry's special staff for Accelerating Mineral and Coal Management, Irwandy Arif, said there are a number of obstacles faced by companies building smelters.

"The obstacles are funding issues, [lack of] supply of electricity to smelters, land acquisition, and licensing problems," Irwandy said in an online discussion on the 'Profit and Loss of Raw Mineral Export Ban' held on Monday, June 12.

To overcome these issues, Irwandy said the ministry has penetrated together with industry actors with representatives of banks with to help companies obtain easy access to funding.

"But this is not easy as some companies have already made deals with other sponsors, even though in reality [the funding] is constrained," Irwandy said.

In terms of energy supply, Irwandy ensures that there is a commitment from PLN to help the industry. "Our other business is the memo that we promote at home and abroad," he said.

Meanwhile, Minister of Investment and Head of BKPM, Bahlil Lahadalia, said that the government is focusing on creating added value through downstream-oriented energy and green industries. He said there are at least eight priority sectors, namely minerals, coal, oil, natural gas, plantations, marine, fisheries, and forestry with 21 commodities.

This policy has been implemented and it is planned that the investment value will reach US$545.3 billion by 2025," Bahlil said in January.

Riri Rahayu

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