Wednesday, 25 May 2022 02:59

The Ministry of Industry Supports NIS Industrial Estates in Downstreaming Nickel-Based Industries

The development of industrial estates outside Java accommodates the downstream policy of natural resource-based industries. This is able to significantly increase the added value of commodities, also contribute to import substitution efforts, increase labor absorption, as well as improve the welfare of the community and the economy in the region. The Ministry of Industry (Kemenperin) encourages the establishment of industrial areas to carry out industrial downstream activities, including nickel-based ones. With nickel reserves of 72 million tons, or 52% of the world's total nickel reserves (2020 data), Indonesia has a great attraction for investment in the industrial sector. "The Ministry of Industry has compiled industrial regional development until 2035 which includes increasing the role of regions outside Java in creating added value for the non-oil and gas processing industry sector by 40% of the total added value of the national non-oil and gas processing industry sector," said Expert Staff of the Minister of Industry for Business Climate. and Andi Rizaldi's investment in North Konawe, Southeast Sulawesi, Thursday (19/5).


The targets include the construction of 36 Industrial Estates with development priorities outside Java, which is supported by the provision of around 50,000 ha of land and the construction of new Small and Medium Industry (IKM) centers, at least one IKM Center in each Regency/City. In Southeast Sulawesi Province, which is one of 22 Industrial Growth Center Areas (WPPI) according to Government Regulation Number 14 of 2015 concerning the Master Plan for National Industrial Development for 2015-2035, there are Industrial Designated Areas (KPI) covering an area of 4,244.68 hectares, with four Industrial Estates, including the Nusantara Industri Sejati Industrial Estate. On this occasion, Indonesian Vice President Ma'ruf Amin inaugurated the laying of the first stone for the Nusantara Industri Sejati (NIS) industrial area in Motui District, North Konawe Regency, Southeast Sulawesi. "The government encourages the development of KI NIS so that it is able to optimize the added value of downstreaming, create jobs, and encourage the regional economy," said the Vice President. KI NIS will build a smelter using Rotary Kiln-Electris Furnice (RKEF) technology. Production capacity in the early stages of 70,000 tons, with 10-12 percent Nickel content. This smelter will be built using the area of the first phase, which is 375 hectares. President Commissioner of NT Corp. Nurdin Tampubolon said that the Nickel smelter being built will produce Ferro Nickel as raw material for other factories, in the form of derivative products such as Nickel Metal, Ni Powder, batteries, to applications for the automotive industry, household appliances, and medical equipment. The Vice President conveyed the Government's desire to develop a modern industrial estate ecosystem that is environmentally sound and sustainable. For this reason, the Government fully supports the improvement of the investment climate in Indonesia, by continuing to increase investment attractiveness, through the provision of licensing facilities, fiscal and non-fiscal incentive facilities, to the imposition of a ban on the export of raw materials.


"My message to the management of the NIS Industrial Estate is to immediately prepare the carrying capacity and capacity in the industrial area to improve export efficiency and competitiveness," he said. In addition, investor participation is very much needed in building an environmentally friendly and sustainable industrial ecosystem. Supporting infrastructure needs in WPPI Southeast Sulawesi include roads, gas, and raw water. To increase the carrying capacity of the industrial area in WPPI Southeast Sulawesi, the Ministry of Industry has submitted a proposal to Bappenas so that the improvement of the 15-kilometer national road from Pohara to North Konawe Regency is included in the Government Work Plan (RKP) 2023 to Bappenas. "We also see the need to build a natural gas network in Southeast Sulawesi Province," said Expert Staff to the Minister of Industry Andi Rizaldi. Domestic production of nickel ore is intended to support the need for domestic industrial raw materials by taking into account Environmental Social Governance, meaning that the industrial sector also pays attention to environmental management and sustainability, as well as regional and community development.

Source: https://pressrelease.kontan.co.id/news/kemenperin-dukung-kawasan-industri-nis-dalam-hilirisasi-industri-berbasis-nikel

 

 

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