"Our natural resources are not eternal resources, so one day, they will run out," he stated at a workshop titled "Synchronization of Mineral Mining Governance from a Political, Legal and Security Perspective" in Jakarta, Tuesday.
He said that as a country with the biggest nickel supply, Indonesia should manage it properly.
"We must encourage downstream production," he said.
He cited the example of nickel processing into ferronickel that could generate added value that is four folds higher.
Apart from ferronickel, nickel could also be processed into nickel matte with five times the added value, Tasrif remarked.
"We need to develop the nickel material derivatives industry," he noted.
Apart from nickel, the bauxite commodity developed into alumina could also generate added value amounting to eight folds higher.
Moreover, Indonesia is among the top 10 countries with the highest bauxite reserves in the world, he stated.
"If bauxite is converted to alumina, then the value is eight times higher. From alumina to aluminum, it becomes 15 times more," he stated.
He added that Indonesia's bauxite is one of the world's top 10.
"But, if it is not managed properly, it will run out and eventually, we will become importers," he said.
The minister believes several other commodities can be developed to boost the country's economic growth and people's welfare.
"There are still many derivative industries that need to be developed. This is a challenge for all of us. We must be able to grow and develop the derivative industries," he stated.
To this end, Tasrif said that all related elements in the country must be able to draw investors and create attractive investment schemes as compared to other countries.
Related news: Expand downstream industry outside mineral, coal mining sector: Jokowi
Related news: 2022 power consumption reflects economic recovery: ministry
Translator: Benardy Ferdiansyah, Resinta S
Editor: Anton Santoso
Copyright © ANTARA 2023
