Accelerating Smelter Development, This is the Ministry of Energy and Mineral Resources Strategy

The Ministry of Energy and Mineral Resources (ESDM) has compiled a quick win program with a market sounding mechanism to facilitate smelter construction. ESDM Ministry’s Minerba Production and Utilization Planning Coordinator Cecep M Yasin said that the government realizes that the construction of mineral processing and refining facilities projects faces a number of obstacles. Therefore, the Ministry of Energy and Mineral Resources seeks to facilitate the construction of the smelter as planned. This effort was carried out in three stages. The first stage involves compiling the smelter company memo info to be offered to potential investors and potential lenders.

“The second stage, we from Minerba try to facilitate the implementation of cooperation with MKU Services LLC in Houston, United States, in the context of market sounding to find investors,” said Cecep in the webinar on the Future of Mining Indonesia, Wednesday (17/3/2021). The ESDM Ministry is also coordinating with the Coordinating Ministry for the Economy by proposing the smelter to become a national strategic project (PSN), so that administrative problems can be resolved more quickly. Then the third stage, market sounding will be carried out in 2021 to the United States, European Union, Asia, and others.

The government will participate in business forums or international events in the context of promoting smelter construction projects. In terms of regulation, the government has issued Permen ESDM Number 17 of 2020 in which smelter companies can make changes to the S-curve of the smelter facility construction plan until 2023. Until 2020, the realization of the number of operating smelters has reached 19 units. The amount consists of 13 nickel smelters, 2 bauxite smelters, 1 iron smelter, 2 copper smelters, and 1 manganese smelter.

Meanwhile, this year it is targeted that there will be an additional four smelters operating. The smelter construction is targeted to continue to increase until it reaches a total of 53 smelters by 2024 Meanwhile, the Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) Ridwan Djamaluddin asked mining business actors not to complain much about complying with the regulations on downstreaming obligations. “My hope is to the business actors, let us prove our intentions are the same, let’s go downstream. This downstream needs capital. As soon as capital is needed, don’t argue, ‘Sir, if you want to build a smelter, the luck is small, we just want to export raw.’ That’s not a trustworthy name. with aspirations, “said Ridwan.