Downstream Mining Industry Must Be Developed, President Jokowi Says

Minister of Energy and Mineral Resources Ignasius Jonan and Minister of Transportation Budi K. Sumadi attend a limited meeting on Wednesday (22/3), at the Presidential Office, Jakarta

President Joko ‘Jokowi’ Widodo asserted that the era of selling natural resources is over. Not to mention that the Government has stopped selling raw materials. Therefore, the President called on people to change the paradigm from mineral and coal as commodities to mineral and coal that bring added value to the national economy.

According to the President, development tendency in developed countries showed that they took a big leap and changed from the countries which sell natural-resource commodities to countries which strengthen their processing industries. Thus, we must also change, not to mention that there are several countries which take a bigger leap by expanding to service industry.

“Therefore, we must focus on developing downstream mining, particularly in the fields of mineral and coal,” President Jokowi said in his introductory remarks at a limited meeting on the Evaluation of the Implementation of Mineral and Coal Downstream Mining, on Wednesday (22/3), at the Presidential Office, Jakarta.

The Government, President Jokowi added, wants to accelerate. The President asserted that speed is very important because other countries have been moving very fast. “I want that the issues and obstacles in developing downstream mining industry, particularly in the fields of mineral and coal, to be settled immediately,” the President asked.

If there are obstacles in the regulation, such as overlapping regulation and permit, the President instructed (all related parties) to scrap it as soon as possible.

President Jokowi noticed that the industrialist also needs certainty and long-term guarantee of operation in order to develop downstream mining. For that reason, the President will provide additional incentives for the enterprises which develop downstream mining if needed.

President Jokowi also asserted that downstream industry can grow rapidly if it is supported by the land readiness, area, raw materials supply, skilled workforces, electricity, transportation, seaports, and other infrastructures.

Therefore, President Jokowi asked that the development of downstream industry in mineral and coal must be integrated with the development of Special Economic Zones (SEZs) in which already provided with the required infrastructures.

Moreover, preparation to create skilled workforce through education and vocational training must be conducted massively, the President added. “I believe that through integrated development, mineral and coal processing industry will grow faster, and bring added value not only by creating more job opportunity but also contributing to a more equitable development,” the President concluded.

Also attending  the limited meeting were Coordinating Minister for Political, Legal, and Security Affairs Wiranto, Coordinating Minister for the Economy Darmin Nasution, Coordinating Minister for Human Development and Culture Puan Maharani, Coordinating Minister for Maritime Affairs Luhut B. Pandjaitan, Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Presidential Chief of Staff Teten Masduki, Minister of Finance Sri Mulyani Indrawati, Minister of Energy and Mineral Resources Ignasius Jonan, Minister of State-Owned Enterprises Rini Soemarno, Minister of Trade Enggartiasto Lukita, Minister of Industry Airlangga Hartarto, and Minister of Transportation Budi K. Sumadi. (DNA/RAH/ES)(RA/YM/Naster)