Press Statement of President of the Republic of Indonesia after the Inspection at Smelter Grade Alumina Refinery, in Mempawah Regency, West Kalimantan Province, March 20, 2024

Journalist:

Sir, any response to this smelter?

President of the Republic of Indonesia (Joko Widodo):

Yes, this is what I often convey. It’s called downstreaming. After nickel, which is in the mining sector, after nickel is produced and also while some are still in process, we move on to bauxite. Now, here with bauxite because the most abundant supply of bauxite ore is located in West Kalimantan Province.

Why does this need to be built? Because our demand is high and half of that demand is still imported. So, if this Smelter Grade Alumina Refinery is completed, it will be taken to Kuala Tanjung, where there is an aluminum industry. They will work on it there. It will be finished as aluminum so we won’t import anymore.

Journalist:

When, sir?

President of the Republic of Indonesia (Joko Widodo):

So, the target is that. This will be completed in June this year. Then, the full capacity will be in early 2025, next year. I think this will greatly substitute imports so our foreign exchange will not go out and we can save more foreign exchange, yes.

Journalist:

Sir, what is the importance of downstreaming especially for the electric vehicle industry related to this smelter?

President of the Republic of Indonesia (Joko Widodo):

Yes, this is a big job where everything must be integrated. Nickel is processed, not only prepared for stainless steel but also for EV batteries. When the EV batteries are finished, copper will also be finished in Gresik in May. If all of that is integrated, all components in EVs (electric vehicles) are made domestically.

From upstream to downstream, everything is done with materials we own so it will be efficient. We have high competitiveness, entering the market competing with any country and we are ready. This is a big job, a big ecosystem that we will build. The body might be made of aluminum, then the EV battery from nickel goes in, for copper for other components, cables, and so on, so it’s all integrated, that’s what we hope for, so everything is efficient and the goods are competitive and can compete with goods from other countries. The goal is to get there.

Journalist:

What efforts have the Government made to accelerate the progress of smelter construction including those in SGAR (Smelter Grade Alumina Refinery) and other smelters, Sir?

President of the Republic of Indonesia (Joko Widodo):

This is all underway. Everything is underway. One by one they are all, nickel is done, now bauxite will be finished by June. The copper will be finished in May, both in Gresik and Sumbawa everything will be finished. It’s just that the most difficult part is integrating. So, some locations are integrated into vehicles, yes.

Journalist:

Regarding the KPU’s recapitulation today, any response, Sir?

President of the Republic of Indonesia (Joko Widodo):

Well, it’s not finished yet. When it’s done, I just received a report a moment ago. There are still two missing. Once those two are in, counted complete, it should be deliberated by the KPU and officiated by the KPU.

Journalist:

Thank you, Pak President.

(AS/EP)