Gov’t Committed to Continue Downstream Industry Development Policy

President Jokowi delivers a speech at Kompas100 CEO Forum 2021, Thursday (18/11) at the State Palace in Jakarta. (Source: Screenshot from Presidential Secretariat’s YouTube)

The Government has renewed commitment to continue the policy on developing downstream industry by, among others, halting raw material export.

“Our policy on developing downstream industry will be continued. We have stopped [exporting raw materials] nickel. If we are brought to WTO (World Trade Organization) by the EU, there is no problem. This is our nickel, from our country,” President Joko “Jokowi” Widodo said in his keynote speech at Kompas100 CEO Forum at the State Palace, Thursday (18/11).

The President also stressed that developing downstream industry will give added values and provide more job opportunities in Indonesia.

“If we send raw materials from Indonesia to Europe, to other countries, they will be the ones who create job opportunities, while we get nothing,” he said, adding that Indonesia will not only stop exporting nickel as raw material but will also gradually stop exporting other mining materials, such as bauxite and copper.

“Nickel, we have stopped it first. Next year we can probably stop [exporting] bauxite. If our smelters are ready, we will stop [exporting] bauxite. Therefore, we can create jobs, develop downstream industry, industrialize our country. If we have stopped [exporting] bauxite, the following year we will stop copper,” he said.

With the termination of nickel exports, the Head of State predicted that export value will increase up to US$20 billion at the end of the year.

“This year, I estimate that we can gain US$20 billion only by stopping nickel [export]. And I predict that if [nickel is] processed into other products, I estimate we can acquire US$35 billion only from one product. Therefore, our trade balance will be good. Our current account balance will improve,” he said.

Before the CEOs in attendance, the Head of State also maintained that all parties have the same strategy concerning downstream industry development.

“We do not talk about company by company, but more importantly, about how downstream industry development, industrialization is carried out,” he said, while also underscoring the importance of integrating available products.

“But more importantly, how we integrate it. Nickel is integrated with copper, integrated with lead, integrated with bauxite, everything. If it is integrated, the end product will be made with only Indonesian materials,” he remarked. (TGH/UN) (DH/EP)