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Jakarta Post

Era of selling natural resources has ended: Jokowi

  • Fedina S. Sundaryani

    The Jakarta Post

Jakarta   /   Thu, March 23, 2017   /   09:28 am
Era of selling natural resources has ended: Jokowi A worker monitors the mineral flotation process to produce copper, gold and silver concentrates in one of Freeport Indonesia's facilities. (Kompas/B. Josie Susilo Hardianto)

President Joko "Jokowi" Widodo has reminded his Cabinet of its priority to continue the downstream development of the mining sector in order to create added value in the sector.

"In my opinion, the era of selling natural resources has ended and we must stop selling raw materials. We must change this paradigm of mineral and coal as commodities and use them to create added value in our economy," he said during the start of a closed-door Cabinet meeting on Wednesday.

"That is what I see in developed countries. They dare to make the leap from being a commodity-selling country to one that strengthens its manufacturing industries. We must do the same and we must do it even faster."

(Read also: Indonesia prepares Rp 40t to acquire Freeport shares)

Indonesia has tried to develop the downstream of the mining sector since it issued the Mining Law in 2009. The government continues to extend the requirement as stated in the law for all miners operating in Indonesia to construct smelters and to stop exporting raw materials and semi-processed minerals because most companies have not got their smelters ready.

The initial deadline for companies to construct smelters alone or together with other companies was by the end of 2014.

Since January, the government has banned exports of all mineral ores and concentrates, except for miners that have committed to converting to a special mining permit (IUPK). This commitment also entails a promise to build a smelter within the next five years.  (bbn)