Wednesday, 19 August 2015


Under the road map arranged by the Ministry of Industry, it is predicted that by 2025, copper consumption per capita will reach 5kg per capita. At that time, the demand of copper products was 1.37 million tons of copper cathodes, thus requiring 202 million tons of copper ore. On a working visit to PT Newmont Nusa Tenggara, on Sunday (May 31), Minister of Industry, Saleh Husin, conveyed that mineral based industrial development is done by increasing value added through processing of mineral resources, so that the metal industry is able to meet the domestic needs and have a good competitiveness in regional and international levels.

In the national Industrial Development Master Plan (RIPIN) year 2015-2035, the Ministry of Industry is targeting non-ferrous base metals processing and refining industry as one of the priority industries, including copper cathode product group. “To increase the value of exports of metal products, the government boosted the added value of local mineral raw materials, so that the exported products have much higher added value than exports of mineral products from mining. That is why the government encourages copper cathode, “said Industry Minister, Saleh.

Law No. 3 year 2014 regarding Industry also mandates the establishment of implementing regulations in the form of Draft Government Regulation (RPP) on Natural Resources to meet the needs of domestic industries, including regulating the following matters: utilization of natural resources efficiently, environmentally friendly and sustainably; prohibition or restriction of export of natural resources in order to increase industry value-added for the deepening and strengthening of the domestic industry structure; and guaranteeing the availability and distribution of natural resources for the domestic industry.

Therefore the Ministry of Industry encouraged efforts to increase value added in the industrial sector. “Newmont is expected to be a driving force in implementing development programs in West Nusa Tenggara Province, as part of the national economic development efforts,” Minister of Industry said when closing his remarks. BPS (Central Statistics Agency) data of 2013 and 2012, the export value of metal products industry is USD 9.7 billion and USD 10 billion, respectively, a decline of 2.6%. While, the import value of metal products industry in the same period is USD 21.4 billion and USD 20.4 billion, respectively, an increase of 4.9%.

The Minister of Industry, Saleh Husin, also made a working visit to Sumbawa University of Technology (UTS). On a visit to UTS, Industry Minister was accompanied by the Director General of Industrial Zoning Development, Imam Haryono; Director General of Metal, Machinery, Transportation Equipment, Telematics and Electronics, I Gusti Putu Suryawirawan; Member of House of Representatives Commission XI and chairman of the Advisory Board of UTS, Zulkieflimansyah; West Nusa Tenggara Governor, M.Zainul Majdi; Sumbawa Regent and Chancellor of Sumbawa University of Technology Arief Budi Witarto.

At the occasion, Minister of Industry explained that the contribution of GDP of industrial sector is very dominant, contributed by industries located in Java, which is 75%. But gradually the non-oil & gas manufacturing sector began to shift to outside Java, from 24.63 percent in 2008 to 27.22 percent in 2013. However the contribution of Papua, Maluku, Nusa Tenggara and Sulawesi to the value-added of the national non-oil & gas industry is relatively small, i.e. around 2.78 percent. Growth in non-oil &gas industrial sector Java is 6.56 percent, already higher than the growth in Java at 5.99 percent.

“Considering that eastern part of Indonesia is rich in natural resources, particularly minerals and marine products, I have great confidence that industrialization in the eastern region will be growing rapidly,” said Industry Minister when giving a public lecture at the Sumbawa University of Technology. Currently, national industrial development policy will focus on industrial zoning development outside Java.

The direction of industrial development policy is also done by increasing industry population with a target of adding 9,000 large and medium-scale industries, where 50% is growing outside Java and 20,000 small-scale industries as well as increased competitiveness and productivity, particularly the increase in export value and value added per worker. “So I invite the academic community of Sumbawa University of Technology to participate actively in making new breakthroughs in efforts to advance the industry in the eastern region of Indonesia, as well as responding to industrial issues in eastern Indonesia,” he said. (E)

Business News - June 5, 2015

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