JK Criticizes Jokowi’s Mineral Downstreaming Policy, Calls for Involvement of National Companies

Jakarta, CNBC Indonesia – Vice President of Indonesia for the 2014-2019 period Jusuf Kalla (JK) some time ago criticized one of the policies of the current President of the Republic of Indonesia, Joko Widodo (Jokowi). The criticism given was regarding Jokowi’s pride program policy, namely mineral downstreaming.

As is well known, downstream minerals are often praised by President Jokowi because they are able to increase the added value of exports. So what is the reason behind JK highlighting Jokowi’s downstream policy?

JK stated that the mineral downstream policy is actually a good policy. However, JK assesses that downstream can only have a good impact if the smelter constructions are carried out by national companies.

“If everything is done by foreigners, the impact will be small. Policies must be evaluated, it doesn’t mean that any government in the future has to evaluate this, don’t say that the government will have to follow the policies of the current government,” said Jusuf Kalla in a special interview with CNBC Indonesia TV, quoted on Sunday ( 21/5/2023).

Apart from downstreaming, Indonesia’s infrastructure development in the era of President Jokowi. Jusuf Kalla said that the flow of foreign investment to various national infrastructure projects should not make Indonesia dependent on foreign expertise and manpower.

He proposed that the government make regulations to ensure that foreign investors entering Indonesia transfer technology as well as train and recruit local workers. “It must be enforced but with rules that must be ratified, it must be. It is not permissible to send this workforce. All countries have the right to regulate it,” added Jusuf Kalla.

Without coercion to recruit and train local workers, according to JK, Indonesia loses the potential to generate greater added value from foreign investment.

He took the example of the rapid growth of the smelter industry in the last decade.

“That’s very important because once the executors were foreigners, tomorrow we will call another contractor. What happened? It did produce a lot, but who owns it? how to make a smelter,” said JK.

Regarding the criticism given by JK, the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif made a statement. Arifin assessed that the government has so far provided opportunities for national companies to build smelters in the country.

Therefore, he also encouraged national companies to be involved in the construction of smelters.

“Now that everyone has been given the same opportunity, just get up,” Arifin said when met at the Ministry of Energy and Mineral Resources Building, Friday (19/5/2023).

Arifin also regrets that there are several companies that are not serious about building smelters in the country. For example, a bauxite smelter which is known to have no significant progress.

“So that (bauxite). So far we have believed the results of the survey calculations, it turns out that we have seen that it is still a soccer field, even a good soccer field,” he said.

(hsy)