Wednesday, June 20, 2012

Abundant SDA, RI Is Even Importing Steel and Aluminum

This is the result if a country like Indonesia is rich Natural resources (SDA) is abundant but cannot process it, consequently to build ships, bridges until the road the materials must be imported all.
As disclosed by Industry Ministry Mohammad S. Hidayat. He said to build docks, ships, airport runways, bridges, railroads, electricity networks, communications and others that require metal minerals such as steel, aluminum, nickel, copper and others but all of them must be imported from abroad.
"To build it, we still rely on imports and some even have 100 percent to import, even though countries that produce steel, aluminum, nickel and others receive raw materials from Indonesia such as Japan and China," Hidayat said in his office, Jalan Jend. Gatot Subroto, Wednesday (06/13/2012).
Like Steel, Hidayat continued, the current domestic demand for steel is 4 million tons per year in the form of iron ore, sponge iron, pellets and scrap where all are still imported.
"Nickel, nickel-based downstream industries such as stainless steel and nickel alloy have not grown in the country. Meanwhile, the need for stainless steel and nickel alloy to meet the needs of the construction, oil and gas, automotive, electronics, machinery, railway, etc. "The value added of nickel-based downstream products will increase 105 times compared to the export of nickel ore," he explained.
Especially when there is a massive export like Aluminum. In 2011, exports of this commodity reached 40 million tons per year, up 5 times compared to 2008.
"In the past few years massive exports also occurred in nickel ore, which amounted to 33 million tons in 2011, an increase of eight times compared to 2008," he said.
Therefore, the government issued export control regulations, especially in 2014, raw materials which are not exported anymore and currently for 65 types of minerals if they want to be exported raw are subject to an export duty of 20% on average.
"The goal is to control exports which tend to increase dramatically. Don't let them leave like the view of bauxite that can run out in the next 4-5 years, as proven reserves of iron ore can run out for another 9 years if everything is not controlled by exports," he explained
While awaiting the export ban regulation that came into effect in 2014, the government is currently continuing to encourage investment in the downstream sector for the processing industry, namely the smelter factory.
"We encourage this, as in the agribusiness sector the smelter industry has grown, this is what we want also for the mineral mining sector," he said.

IWD/The Truth Seeker Media

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