Smelters encouraged to use green energy: officials

Jakarta – The government plans to limit the construction of mineral processing and refining factories or smelters that are not oriented towards the use of clean and environmentally friendly energy to encourage a green industry.

“In the future, we will place restrictions on the construction of smelters that are not green energy oriented,” said Minister of Investment/Head of Indonesia Investment Coordinating Board, Bahlil Lahadalia, recently in the Presidential Secretariat Youtube channel.

He said the restrictions are aimed at creating products and commodities produced from renewable energy, which are currently increasing in demand in the global market. Lahadalia added that the government is currently formulating incentives to build a competitive electric vehicle industry so that it can create new jobs. He also considered that Indonesia has a large share of the electric vehicle market.

“Don’t let our market be penetrated by products from abroad, we must guard it. The second is, we are also able to penetrate the export market,” said Lahadalia.

According to the Ministry of Energy and Mineral Resources (ESDM), currently Indonesia already has 21 smelters, with an additional seven projects in development in 2022. Up to 53 smelters or refining facilities are targeted in 2023.

Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Management, Irwandy Arif said that there are many challenges in the downstream industry that may hinder the 2023 target. These challenges include aspects of licensing, funding, energy readiness (electricity rates, installation costs), and other issues such as the arrival of equipment, foreign workers and technology.

In addition, there are other challenges in the form of implementing clean technology. The green metal product will support the battery and electric vehicle ecosystem. However, currently metal production in Indonesia is only limited to main metals such as nickel, gold, silver, copper, but by-products have not been handled properly.

Even though the development of the ecosystem of batteries, stainless steel, and solar modules that are already in sight is quite developed in Indonesia. “It’s just a matter of maximizing the downstream process,” Arif said. (Hartatik)

Banner photo: North Morowali, Indonesia. 26, November-2022: Continuation of Furronickel Smelter Construction, production of ferronickel. (Eklesia_Magelo/

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