Press Statement of President of the Republic of Indonesia during the Inspection of Asphalt Producer PT Wika Bitumen in Buton Regency, Southeast Sulawesi Province, September 27, 2022

Reporter:

Good afternoon, Sir.

Bapak Jokowi, could you explain today’s activities?

President of the Republic of Indonesia (Joko Widodo):

Southeast Sulawesi province has a gigantic potential in asphalt mining located in Buton Regeny. The problem is that we import around 5 million tons of asphalt per year instead. While there is no production here, we continue to import the asphalt.

Therefore, I spoke with the minister. Today, we will inspect and conduct a feasibility study in the hopes of supporting industrial downstreaming here. Industrial factories shall be running, not just producing the raw materials without added value. No more. Stop.

So, we’ve already decided that no more asphalt import in two years’ time. The production must be done by Buton. State-owned Enterprises, private sector, or international investors may join. But we want more added values from the asphalt industry in Buton, which has a potential of 662 million tons. It is really huge. So if we import 5 million tons of asphalt per year, for the next 120 years, we can still produce asphalt here. The value added, the tax, the royalty, the dividend, the workers’ income tax will be reaped here.

So, we hope that Buton regency can revive as an asphalt producer industrial area, not as a mining industry. Not a mining industry. I have checked the production of PT Wika, and it turns out the production is stuck. So, that is all. I will later invite the President Director of PT WIKA.

Reporter:

Thank you, Sir.

(YC/AW/HD/MUR)