Luhut to Meet IMF Managing Director, Discuss Nickel Downstreaming

TEMPO.CO, Jakarta - Minister of Maritime Affairs and Investment, Luhut Binsar Pandjaitan, plans to visit the International Monetary Fund (IMF) to discuss the IMF's request for Indonesia to consider lifting the policy banning nickel exports.

The spokesperson for the Coordinating Minister for Maritime Affairs and Investment, Jodi Mahardi, stated in a brief message to Antara in Jakarta on Thursday, June 29, 2023, that Minister Luhut will meet with the Managing Director of the IMF around late July or early August to explain Indonesia's vision regarding downstreaming.

"Minister Luhut will travel to the United States and intends to meet with the Managing Director of the IMF to elaborate on our vision in more detail. This is an opportunity for us to engage in constructive dialogue and share our goals in creating a more sustainable, fair, and prosperous Indonesia," he said.

Jodi expressed the Indonesian government's gratitude for the perspectives conveyed by the IMF. He emphasized that as a sovereign and developing nation, Indonesia's view of the future is to strengthen its role in the downstreaming process, which refers to increasing the value-added of its products rather than solely being a raw material exporter.

The Indonesian government also reaffirmed its commitment to building a sustainable and progressive economy that involves all layers of Indonesian society. Jodi underlined that the concept of downstreaming not only encompasses the process of value addition but also includes stages up to recycling, which is an integral part of Indonesia's efforts to maintain ecosystem balance and emphasize the importance of sustainability.

"We have no intention of unilaterally dominating all downstreaming processes. The initial stages will be carried out in Indonesia, but subsequent stages can still be conducted in other countries, supporting their industries in the spirit of mutually beneficial global cooperation," he said.

Jodi also mentioned that this step aligns with the mandate of Article 33, paragraph (3) of the 1945 Constitution of Indonesia, which states that land, water, and natural resources are gifts from the Almighty for the sustainability and prosperity of the people.

Previously, it was reported that the IMF urged Indonesia to consider gradually lifting the restrictions on nickel exports and not extending the restrictions to other commodities. This recommendation was based on the document "IMF Executive Board Concludes 2023 Article IV Consultation with Indonesia," which provided notes regarding Indonesia's nickel downstreaming plan.

In the document, the IMF mentioned that policies should be based on further cost and benefit analysis. Additionally, policies need to be shaped while considering the impacts on other regions.

MARTHA WARTA SILABAN

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