REPUBLIKA.CO.ID, JAKARTA - Indonesia is projected to increase added value of mineral from downstream policies about 268 billion USD during 2017-2023. According study by Indonesia Resources Studies (IRESS), three minerals contributing to the figure are bauxite worth 18 billion USD, copper worth 13.2 billion USD, and nickel worth 9 billion USD.
"The policy on downstream mineral will encourage growth in investment on mineral processing and refinery plant. Such facilities then will create more benefits," Executive Director of IRESS, Marwan Batubara, said on Monday.
Batubara said, Indonesia would gain some benefits from the new regulation, including financially and economically increase in mineral product's added value, sufficient raw material supply for domestic industry, more jobs, and state revenue through taxes, gross domestic product (GDP) per capita income.
The study shows that investment on smelter during 2014-2017 is predicted to reach 25,5 billion USD. Hence, Indonesia can save its foreign exchange by 10,17 billion USD in 2017.
The implementation of the regulation will also create 2,4 jobs.
Regulation number 4/2009 bans mineral ore export started on Januari 12, 2014. According to Batubara, during the first or second year Indonesia might suffer due to the lower income from taxes and royalties by 69 trillion IDR to 100 trillion IDR.
"Entering the third year, I believe Indonesia will enjoy some benefits because our fundamental industry will be ready. This conditiin will help us to develop human resources in Indonesia," Head of Indonesian Metallurgical and Material Association (AMMI), Ryad Chairil, stated.
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