The Ministry of Energy and Mineral Resources (ESDM) revoked the export permit of three mineral companies because their smelter (processing and refining facilities) construction were below target.
"This is because the smelter's progress fail to reach 90% of the S curve target in every six months," said ESDM Ministry Director of Mineral Development and Business Yunus Saefulhak to CNBC Indonesia when contacted on Monday (4/15/2019).
He said the three mineral companies consisted of one nickel company and two bauxite companies, namely PT Surya Saga Utama (nickel), PT Lobindo Nusa Persada (bauxite) and PT Gunung Bintan Abadi (bauxite).
Yunus emphasized that the revocation apply only for recommendation or export permit, while the construction permit was still valid as the construction of the smelter was mandatory.
Previously, the Indonesian government targeted 57 processing and refining plants or smelters by 2022. To date, there are 36 processing and refining facilities (smelters) being build, and 27 smelters are operational.
Based on data from the Directorate General of Mineral and Coal, the majority of the 36 smelters under construction are nickel smelters.
"There are 23 nickel smelters under construction with 48.65 million tons capacity," said ESDM Ministry Director General of Mineral and Coal, Bambang Gatot, during a hearing (RDP) at the DPR/MPR Building, Jakarta on Monday (11/3/2019)
Furthermore, Bambang explained, in addition to nickel smelters, there are also five bauxite smelters with 15.87 million tons capacity, and two copper smelters for 4 million tons capacity.
"The rest are iron, lead and zinc smelters," Bambang said.
Source: Anastasia Ariranty / CNBC Indonesia
15 April 2019