Regulation on Act 4/2009 about ore and coal Article 102 and 103 cites that domestic ore smelter will optimize its value-added and guarantee national’s metal material availability. 

Power expert, Ryad Areshman said that the availability of raw materials affects state’s income and workforce absorbance. According to him, it is wrong if the ruling considered inferior. “In contrast, this will only empower metal industrial development. Our nation will have its own sovereignty over ore-processing industries,” he said at MK Plenary Room, Monday (9/22). 

For example, he hinted aluminum which is the third major component contained on earth’s crust after oxygen and silicon. Aluminum occupies as much as 8,1% of earth’s crust as bauxite ore and can only be found in seven countries. Indonesia’s bauxite has been exported to advanced countries to build their construction and manufacture industries. The export activity, significantly decreased national’s stocks, “in return, national’s aluminum industries must import their raw materials from other countries, while our bauxites are continuously being sent abroad,” he added.  

Whereas, if Indonesia can provide its own smelter plantation, the value-added may doubled to 180 times fold. Economic growth may not experience any distortion due to the lack of export or workforce losing. 

Bigger Saving

Aligned with Ryan’s opinion, Tony Prasentiantono said that in short-term, Indonesia will lose as much as USD 5 billion of export saving as the smelter regulation underway. However, considering the potential of value-added process, Indonesia will be seeing long- and middle-term saving boost, ranging from USD 25 to 50 billion. “This is drastically significant to the national’s economic growth,” he said.

Moreover, he said that Indonesia will be experiencing deficit this year as what happened last year, to which can be tackled by Indonesia exporting processed ore. “This momentum to divert deficiency cannot be wasted” he added.

Previously, Indonesian Ore Entrepreneur Associations (Apemindo) represented by its attorney, Refly Harun said that government is inconsistent to implement Article 102 and 103 act of ore and coal. Both Articles decline any ore export attempt came into an effect by January 12, 2014. However, the interpretation was considered opposing 1945 Constitution. (Lulu Hanifah)