The government has issued a regulation banning exports of raw minerals in a bid to boost development of processing industry in the country to earn larger added value and create more jobs.Makassar, South Sulawesi (ANTARA News) - President Director of PT Vale Indonesia Tbk (PT Vale), Nico Kanter said he hoped the government is consistent in its policy banning exports of row minerals especially nickel ore.
The government has issued a regulation banning exports of raw minerals in a bid to boost development of processing industry in the country to earn larger added value and create more jobs.
"Development of nickel smelters in Indonesia at present is driven by the policy banning exports of nickel ore and demand from from China," Kanter said here on Tuesday.
PT Vale Indonesia, the countrys largest nickel producer, is a subsidiary of Vale, a global mining company based in Brazil.
Kanter said he noted there had been call for relaxation in the policy banning exports of row minerals .
The reason cited for the discourse is difficulty in financing construction of smelters, and the exports of the mineral would help finance the construction of smelter .
"Although the price of nickel is low at present on weak demand especially from China, construction of nickel smelters in the country has continued to show progress since the export ban was made effective," he said.
The construction of the smelter opened new jobs and would certainly contribute to the state income, he said .
Meanwhile, there are many small nickel mines closed in other countries, therefore, the policy banning exports of nickel ore could improve the long term position of Indonesia in the global market, Kanter said.
He said construction of a nickel smelter would need huge investment and long process of planning and preparations.
"Investors, therefore, would need legal certainty and consistency in government policy in ban on exports of nickel ore," he said.
Relaxation in the policy would discourage investment to build smelter and badly dent the confidence of investors, he said.
"Relaxation of the policy allowing exports of nickel ores to market already over supplied is a big mistake," he said.
He said more exports of nickel ores would push down the already low price of the commodity in the world market.
Income from the exports of cheap nickel ore would not help finance the construction of smelter that need huge investment, he added.
Therefore, the idea of allowing exports of nickle ore to raise fund needed to build smelter would result only in damage to the spirit of increasing added value through industrialization, and denting the confidence of investors, he said.
"Consistency in policy is important for long term investors, and to maintain good reputation and credibility of the government.
"Hopefully the government would consider this seriously that the country could optimize utilization of the countrys natural resources," he said.(*)
Editor: Heru Purwanto
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