Under the leadership of President Jokowi, Indonesia has successfully advanced the Mineral downstream industrial agenda. This plan demonstrates a sharp increase in the value of export prices added from nickel ore processing, which will soar to $33.8 billion, or 510 trillion Dong, in 2022.
It is worth mentioning that before the implementation of the programme in 2014-2015, the value of nickel ore exports was only $1.1 billion to $2.1 billion.
"After adding value through processing, the value of nickel processed exports has jumped from US $2.1 billion to US $33.8 billion to 510 trillion rupiah," President Jokowi said at the inauguration of the Indonesian Entrepreneurs Association's National Council 2023-2028 at the Kempinski Hotel in Jakarta. "You can imagine what a huge increase that is."
In addition, this so-called "Jinshan silver mountain" effect only comes from nickel ore processing products. At present, the government is promoting the value-added processing of other mineral products, such as bauxite and copper. He added: "You can imagine the numbers, and that's just downstream for nickel mining."
Echoing President Jokowi's view, Coordinating Minister for Maritime Affairs and Investment Lu Ho has said that the value of processed value-added exports of nickel ore is increasing significantly every year.
In 2014, for example, the value of unprocessed nickel ore exports was only $2.1 billion. After the implementation of the processing value-added, the export value of nickel mineral products jumped to $11.6 billion in 2020, $22.214 billion in 2021, and soared again to $33.8 billion or about 507.33 trillion dong in 2022.
Minister of Investment and Director of the Investment coordination Agency Bahlir also mentioned the export value of nickel products at the end of last year. He has predicted that by 2022, the export value of nickel ore processing products will exceed $30 billion.
It is well known that Indonesia's policy of developing downstream mining industries is facing opposition from some countries. These include a case brought by the European Union against Indonesia at the World Trade Organization over the policy. In addition, the EU has imposed a series of punitive measures on Indonesia in response to the country's appeal at the WTO.
In addition to the EU's objections at the WTO, the International Monetary Fund has also criticized Indonesia's policy of developing downstream mining industries and called for the program to be phased out.
"Whether we are sued by the World Trade Organization or not, whether the IMF warns us, we will continue with this program," Jokowi stressed.
For President Jokowi, the development of downstream industries is an important factor in promoting Indonesia to become a developed country. Therefore, processing value-added or developing downstream industries will not only be limited to mining, but will also include other areas such as fishing and agriculture, aiming to drive national prosperity and strength.
"I think there are two important factors that have enabled us to make the leap to developed country status, the first is to develop human resources, which has been successful in terms of demographic dividend, but now it is not enough," he said. The second is to develop downstream industries, and if we can achieve this, in addition to mining, and also succeed in agriculture, fisheries and agriculture, by 2040-2045, according to the forecasts of the World Bank, the International Monetary Fund and the Organization for Economic Cooperation and Development, our Indonesia will become a developed country."
