Indonesian government decides to suspend construction of new nickel smelting plant

The government has decided to stop the construction of new nickel refining facilities or smelters that produce low value-added products, namely rotary kiln electric furnace (RKEF) smelters that produce nickel pig iron (NPI).The Minister of Energy and Mineral Resources said at the Directorate General of Oil and Gas (Migas) in Jakarta that the Ministry of Industry has agreed not to add new plants to RKEF, NPI. The government is encouraging the use of minerals to support the electric vehicle industry and new renewable energy sources, in the meantime Indonesia's smelters include bauxite, nickel, iron and copper. Indonesian smelters must be able to produce intermediate products, and there are several intermediate products that are not produced by Indonesian smelters.

This is what the government needs to encourage down there so that the industry can grow rapidly. Now the government is also evaluating the nickel-based industry, which is not high value-added, and they are evaluating that the decline of the industry has already begun so that there is no more development, and after that no new factories can be built, and the construction of new smelters producing low value-added products must be stopped first. It stops first, there can't be more. So after that the government will think about it so that it can guide the transformation of the industry and of course look at the international demand.