Kartini L Makmur, Yanuar Pribadhie
The deadline to implement the mineral export ban on 12 January 2014 continues to draw closer. Welcoming the introduction of the export ban, the Indonesian Association of Mineral and Metallurgy (Asosiasi Metalurgi dan Mineral Indonesia – AMMI) has given its support for the Government to stick with the policy.
Ryad Chairil, Chairman of AMMI, is of the view that the mineral export ban policy has broader and more important consequences for Indonesia.
The policy, Ryad continues, “will serve as a basis to develop a strong foundation for mineral-based industries because it is the backbone for other manufacturing industries, such as the steel and aluminum industries”.
Ryad provides the example of the importance of bauxite processing into alumina for the aluminum industry. Inalum imports approximately 500 thousand tons of alumina from Australia.
In contrast, Indonesia has bauxite reserves of up to 800 thousand tons. If Indonesian industries are capable of processing bauxite into alumina, Inalum does not need to import alumina from Australia.
“Even worse, 50 percent of Indonesia’s nickel ore is provided to Chinese industries. This is ironic because Indonesia is the world’s third biggest nickel producer. If we are able to export processed nickel ore, this will enhance its value up to 38 times,” explained Ryad.
Even if there are initially potential losses suffered by the Government due to the policy, Ryad believes that the enhanced value of processed mineral s will cover these losses. He also ‘refutes’ the possibility of mass layoffs due to the implementation of the policy.
“Instead, the policy will create a domino effect for job creation not only in upstream industries, but also in the downstream,” stated Ryad.
(hot/kc)
Kartini L Makmur, Yanuar Pribadhie
The deadline to implement the mineral export ban on 12 January 2014 continues to draw closer. Welcoming the introduction of the export ban, the Indonesian Association of Mineral and Metallurgy (Asosiasi Metalurgi dan Mineral Indonesia – AMMI) has given its support for the Government to stick with the policy.
Ryad Chairil, Chairman of AMMI, is of the view that the mineral export ban policy has broader and more important consequences for Indonesia.
The policy, Ryad continues, “will serve as a basis to develop a strong foundation for mineral-based industries because it is the backbone for other manufacturing industries, such as the steel and aluminum industries”.
Ryad provides the example of the importance of bauxite processing into alumina for the aluminum industry. Inalum imports approximately 500 thousand tons of alumina from Australia.
In contrast, Indonesia has bauxite reserves of up to 800 thousand tons. If Indonesian industries are capable of processing bauxite into alumina, Inalum does not need to import alumina from Australia.
“Even worse, 50 percent of Indonesia’s nickel ore is provided to Chinese industries. This is ironic because Indonesia is the world’s third biggest nickel producer. If we are able to export processed nickel ore, this will enhance its value up to 38 times,” explained Ryad.
Even if there are initially potential losses suffered by the Government due to the policy, Ryad believes that the enhanced value of processed mineral s will cover these losses. He also ‘refutes’ the possibility of mass layoffs due to the implementation of the policy.
“Instead, the policy will create a domino effect for job creation not only in upstream industries, but also in the downstream,” stated Ryad.
(hot/kc)