President Jokowi Asks for an Increase in Value Added of Mineral and Coal Done in Indonesia

President Jokowi inaugurated the Pertamina Grand Project Integrated, in Donggi Senoro, Banggai, Central Sulawesi, on Sunday (2/8)

President Joko Widodo (Jokowi) asserted that the government is determined to continue and be consistent to run a program of the added value increasing of the mineral and coal products as mandated by Act No. 4 of 2009 on Mineral and Coal Mining (Minerba).

“We are a very big country with natural resources and raw materials of many kinds; this is what should be downstreaming. We have to start again, thought of industrialization, massive reindustrializes,” President Jokowi said in the speech when Inauguration of Integrated Pertamina Grand Project in District Luwuk, Banggai, Central Sulawesi province. Sunday (2/8) afternoon.

President Jokowi asked that in carrying out this downstreaming program, the whole process of increasing the value added be done in Indonesia.

The president appoints the example, such as CPO palm oil, it should be processed in Indonesia. “It must be processed in Indonesia with all its entire derivatives, so it will bring greater added value, will create jobs,” he said.

On the other side, President Jokowi also pointed to the example of the results of his visit to Morowali, when the nickel mine manager asked for a period of 6 (six) years, from semi-finished goods for processing into finished goods.

In another part of his speech, President Jokowi also talked about Integrated Pertamina Grand Project, which is upstream and downstream oil and gas with a total investment of 5.8 billion US dollars that was inaugurated by him, at the location Donggi Senoro LNG, the Village Uso, District Batui, Banggai, Central Sulawesi.

President calls on all parties, especially the Ministry of Energy and Mineral Resources (ESDM) and Pertamina in implementing monetization Donggi Senoro project in Banggai, Central Sulawesi Province to complete integrate the entire job. The integration not only as a discourse.

As to the obstacles related to the integration process, the President asked the Ministry of Energy to locate and identify.

“If the barriers small to medium, the barriers could be solved itself, but if the big barriers and need political backup from President, please convey to me,” Jokowi said.

First in Indonesia

Previously, Managing Director of PT (Persero) Pertamina Soetjipto in the report expresses, Integrated Pertamina Grnad Project, which was inaugurated by President Jokowi in Donggi Senoro, Banggai, Central Sulawesi, comprised of Central Processing Plant managed by the Operating Body Pertamina Join Medco Tomori Sulawesi with investment amounted to 1.2 billion US dollars.

“The facility has a total production capacity of 315 million cubic feet per day (MMSCFD) and will process gas sourced from the development Senoro-Toili, where 250 MMSCFD will be supplied to the Donggi-Senoro LNG plant, and 55 MMSCFD to ammonia plant PT Panca Amara Utama,” Dwi said.

According to the Managing Director of PT Pertamina, Donggi Senoro is the first LNG refinery project in Indonesia involving Asian companies, namely PT Pertamina (Persero), PT Medco Energi International Tbk, Mitsubishi Corporation, Korea Gas Corporation (KOGAS) without involving major oil and gas companies.

Furthermore, as part of efforts to fulfill domestic needs JOB Pertamina, Medco Tomori Sulawesi has committed to distribute as much as 55 MMSCFD gas to ammonia plant with a capacity of 700,000 tons per year, which will be managed by PT Panca Amara Utama. The ammonia plant is expected to start groundbreaking and absorb investment of 800 million US dollars.

“Integrated Pertamina Grnad Project is showing a strong commitment of Pertamina together with the best partners in order to contribute to the economic development of Indonesia. Not just as a source of state revenue, but also a key to economic growth in the local area through the multiplier effect of these projects “,  Dwi Soetjipto said.

Attending the event, among others Coordinating Minister of Maritime, Indroyono Susilo, Coordinating Minister for Economy, Sofyan Djalil, and Minister of Energy and Mineral Resources, Sudirman Said.  (*/Humas Kementerian ESDM/ES)