Thursday, 25 November 2021 03:22

Encouraging Higher Value-Added Investment, President: Indonesia No Longer Exports Raw Materials

President Joko Widodo said that currently Indonesia needs investments that have high added value. Therefore, Indonesia cannot export raw materials, but can be processed into finished or semi-finished goods. “Driving investors to turn raw goods into finished goods. If you don't want finished goods, then it's already semi-finished at least. This is what I say back and forth, the economic transformation that we want there," said the President at the 2021 National Coordination Meeting and Investment Service Award, Wednesday (24/11). The President emphasized that Indonesia would gradually stop all exports of raw materials, such as nickel, bauxite, copper and tin. This policy is carried out so that Indonesia can get greater added value. “Nickel, four years ago our exports were crude, (worth) 1.1 billion US dollars, approx. This year, my estimate could reach 20 billion US dollars. From about Rp. 15 trillion, it jumped to Rp. 280 trillion. That's what we call added value there," said the President.
With this added value, the President said the country would get various benefits. "Of course the state will get royalties, PNBP (Non-Tax State Revenue), export duties, get taxes, get VAT (Value Added Tax)," said the President. On the other hand, regions will also get a very large money circulation effect, such as in North Maluku and Central Kalimantan. "Check how much economic growth there is now. It will definitely have an impact on economic growth, people's incomes, and people's purchasing power. Everything will be affected," said the President.

The President emphasized that the transition from an economy based on raw materials to semi-finished and finished goods must be integrated by the government. For example, nickel and steel can be integrated into lithium batteries, then reintegrated into electric cars. “The added value can be multiplied again. That has not been done and it will happen, God willing, in the next three or four years," said the President. It is hoped that by having integrated industries, there will be a transfer of knowledge and transfer of technology so that Indonesia is able to rise and develop to a higher level.




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