“Corona” crisis: The smelter projects are disrupted; Indonesian Mining Association appeals for handling Aluminium sector seriously

The Indonesian Mining Association (IMA) appealed that an increase in value-added or in the mining sector still needed to work on seriously, especially for bauxite commodities.

Djoko Widajatno, Executive Director, IMA revealed bauxite is a mineral that does not have much reserves compared to other minerals such as nickel. Although currently, the industry that absorbs Alumina and aluminium finished products is not widely available domestically.

Seeing this prospect, Djoko stated, the construction of a processing and refining plant needs to be a priority and accelerated. Moreover, the aluminium industry is a basic industry that needs to be developed.

He added: "The prospect of downstream is very good to support the industry. By looking at the needs of aluminium for the building materials industry and the chemical industry, the construction of smelters needs to be accelerated. If it is slow, it will be increasingly difficult to build basic industries.”

Even so, Djoko agrees that it will not be easy. Moreover, the COVID-19 pandemic made the smelter construction project an obstacle; it can even take more than a year.

Furthermore, Djoko said, outside the COVID-19 factor, smelter construction in general and also bauxite mining was still constrained due to funding problems.

Erry Sofyan, Chairman of the Indonesian Bauxite and Iron Ore Entrepreneurs Association said: “The absorption of bauxite ore processing in the country was indeed still minimal. Currently, the industry made from bauxite mineral is still in the form of alumina refinery which processes bauxite into 99% alumina powder.”

“While the advanced industry after alumina refinery is the aluminium industry with products in the form of aluminium ingots and billets needed by the domestic industry."

According to Erry: “The construction of aluminium smelters is indeed difficult during the COVID-19 pandemic. In addition to technical factors related to project work, market and economic factors also influence, including the matter of funding problems. With this pandemic, it must be difficult to get financing and marketing,"