“TRADE BARRIER” IS THE MAIN CHALLENGE FOR THE DILIRIZATION OF INDONESIAN MINING PRODUCTS

Endang Naryono
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Endang Naryono: STIE PASIM SUKABUMI

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Abstract: The most crucial challenge that Indonesia faces is the trade challenge created by other countries. Mining products, such as nickel, are often subject to anti-dumping and anti-subsidy measures by the European Union. The existence of Law no. 3 of 2020 concerning Amendments to Law No. 4 of 2009 concerning Mineral and Coal Mining mandates the sale of minerals abroad after three years of enactment or 2023. This policy aims to downstream so as to create added value while meeting domestic needs. The mining industry in Indonesia has great potential to be developed through the downstream process. The downstream process carried out in the last two years shows that mining has made a significant contribution to Indonesia's trade balance. This increase in downstream exports has helped create a trade balance and balance of payments surplus which has had a positive impact on the stability of the rupiah exchange rate and macroeconomic indicators. Apart from that, job creation has also increased significantly. "Especially in the Teluk Weda, Obi, Morowali and Konawe areas, where the number of workers reaches tens of thousands and the average salary is above the regional minimum wage. The government's target is to integrate downstreaming to an advanced stage in order to attract greater investment. However, the downstream process is not easy, in fact it faces various challenges that need to be resolved. Such as in the process of downstreaming the mining industry in Indonesia. One of the main challenges is the large investment required. On average, downstream projects in the mining industry have quite large costs, above US$ 1 billion.

Date: 2023-09-21
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DOI: 10.31219/osf.io/qhgdb

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