The Ministry of Industry (Kemenperin) focuses on increasing the competitiveness and added value of the industry downstream in the agro-based, mineral-based and oil-gas, and coal-based industrial sectors in 2022. "Regarding the agro-based industry, we can say that the palm oil industry is showing very good downstream progress," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita during a working meeting with Commission VII DPR RI broadcast in Jakarta, Wednesday. The Minister of Industry explained that in 2021, the ratio of Raw Material Export Volume to Downstream Products will be 9.27 percent of raw materials compared to 90.73 percent of downstream products. As for the various types, in 2021 there will be 168 types of downstream palm oil products. Downstream of palm oil is said to be important because palm oil which is processed into margarine, produces double the added value, into bath soap produces three times the added value, if it can be used as cosmetics the added value reaches six times.
In relation to the B30 program, this program has succeeded in saving US$4.54 billion in foreign exchange, reducing emissions to 24.4 million tons of CO2, as well as absorbing 1.15 million on-farm workers and 8,600 off-farm workers. Regarding the development of oil and gas and coal-based industries, Agus continued, investment in the construction of a naphtha processing petrochemical plant by PT Chandra Asri and PT Lotte Chemicals which processes naphtha with a total of 6.8 million tons per year is being produced, among others, into ethylene, propylene, butadiene, benzene, and others. "This includes petrochemical projects by PT Pertamina in Balongan and Tuban. With all these investments, it is hoped that Indonesia will become the number one petrochemical country in ASEAN," said Agus. Then, related to the development of mining and mineral-based industries. Currently, the nickel smelter industry has grown rapidly and produces Nickel Pig Iron (NPI), ferronickel, hydrate nickel, and stainless steel. To date, there are 27 smelters (pyrometallurgy and nickel hydrometallurgy) that are already in operation, 32 stages of construction, and six stages of feasibility studies (FS). "In the future, nickel smelters will not only export in the form of NPI and battery raw materials but also in the form of more downstream products such as downstream products made from stainless steel and electric batteries," said the Minister of Industry.
According to Agus, nickel-based downstream will increase the added value of nickel ore into smelter products such as NPI and Ferronickel (FeNi) for pyrometallurgy and Mix Sulphide Precipate (MSP) or Mix Hydroxide Precipate (MHP) for hydrometallurgy by 14 times. Meanwhile, for upstream stainless steel products such as slabs and billets, nickel and cobalt sulfate, and nickel mate, there is a 19-fold increase in added value compared to nickel ore. And so on so that for downstream products or finished products such as medical equipment, kitchen utensils, tableware, aerospace and electric vehicles, the increase in the added value of nickel ore can reach 340-400 times. For the downstream of bauxite-based metal minerals, from 4 tons of bauxite ore, 2 tons of alumina are obtained which will become 1 ton of aluminum ingots. If converted in value, the increase in the added value that will be obtained from bauxite ore to alumina is 3.5 times and from alumina to aluminum ingots by 3.5 times. So, from bauxite ore to aluminum ingots, the total added value will be increased by 12.25 times. "This added value will continue to increase when the aluminum ingots are processed into ready-to-use manufactured products or finished products such as aluminum electrical conductor wire, aluminum profile housing construction, and food packaging aluminum foil which is estimated to increase 2-3 times than aluminum ingots," said Agus.
Source: https://www.antaranews.com/berita/2679165/kemenperin-fokus-genjot-hilirisasi-industri-pada-2022
