Prediction Nickel Smelter Investment Will Increase

Minister of Industry Agus Gumiwang Kartasasmita predicts that nickel smelter investment will increase in the coming year. The prediction was conveyed due to the success of the nickel downstream program in Indonesia. This is also supported by the presence of 82 nickel smelter industries that have entered the operation, construction, and feasibility studies or planning stages.

“One of the smelter investments that is getting more widespread this year, and is predicted to be in the coming years is the investment in nickel processing and refining to date,” said Agus (07/10/2022).

Reported by antaranews.com, one form of the mineral-based downstream program is the growth and development of processing and refining facilities (smelters). Agus explained, with the rampant investment in smelters being built to date, the export value of nickel-based commodities will increase, especially for ferronickel, which has increased in the last 10 years.

Agus also said that the downstream program had a broad impact on the national economy, especially through employment. The smelter industry also transfers knowledge by sending training and assistance to Indonesian workers. In addition, there are smelters that collaborate with educational centers, vocational training, or universities to train and prepare competent industrial workers.

“Along with the increase in the production of iron, steel, copper and gold raw materials to metal ore mining business fields, the total existing smelters now absorb around 200,000 workers spread across 15 provinces,” he said.

Agus added that smelters produce products with higher value than mining products. Therefore, industries that can process products from smelters are needed more for future progression. This creates a more comprehensive supply chain.