Jakarta, The Indonesia Post – President Joko Widodo asked whoever becomes Indonesia’s leader not to return to the policy of exporting raw materials abroad.
“Whoever will be the leader, the president, we must maintain that consistency and continue to improve. Don’t go back to raw exports again, be careful we all have to remind you,” President Jokowi said in Jakarta, Tuesday.
President Jokowi conveyed this when opening the XII Congress of the Veterans Legion of the Republic of Indonesia (LVRI) and the XI National Conference of Veterans Wives of the Republic of Indonesia (PIVERI) 2022.
“Even though we are being sued. If we are sued and we withdraw again, when will we be able to enjoy our commodities and wealth?,” said the President.
The President said that three years ago the government set a policy to stop exports of raw nickel, Indonesia was subsequently sued by European Union countries to the World Trade Organization (WTO).
“Until now it hasn’t been finished because we stopped. According to the rules, they say we can’t, yes, if we are sued then we are afraid and don’t dare to go forward, do we continue like we used to, continue to export what we export, sue us, sue us face the lawsuit, you can win or lose,” explained the President.
President Jokowi also said that the attitude of processing natural resources domestically is a consistent policy of the Indonesian government.
“Next year, we will stop tin, next year we will stop copper, because the added value is domestic. Let me give an example when nickel is exported in raw form, we only get a value of Rp. 15 trillion after being exported in semi-finished form and finished goods are worth Rp. , increased from Rp. 15 trillion to Rp. 360 trillion, just one item,” said the President.
Another example is the takeover of the majority stake in PT Freeport Indonesia through the Mining BUMN Holding MIND ID or PT Inalum (Persero).
“I need to convey to seniors, elders, that the majority of Freeport now belongs to Indonesia, not to American companies anymore because previously we were only given 9.3 percent, for three years our negotiations were very tough and we now hold a majority share of 51 percent. ,” added the President.
The President admitted that he previously did not want to visit PT Freeport Indonesia because the company does not belong to Indonesia.
“But now I’m going to Freeport because it’s clearly ours, it belongs to our BUMN, meaning it belongs to the Indonesian government and also what I’m happy about, I checked there, I heard a lot of the employees were Caucasians, they answered ‘No sir, now 98 percent is Indonesia. ‘, and what I’m happy about is that 40 percent are Papuans, the Papuan people,” said the President.
This means, according to President Jokowi, there is a technological and economic transformation.
“I only realized when I went there, I realized that this is a big economic transformation. If this is consistent, we will continue to do it, without fear of being sued, the added value will jump,” said the President.
Based on the calculations of the Minister of Finance Sri Mulyani, quoted by the President, with Freeport Indonesia’s share ownership of 51 percent, the government gets taxes, Non-Tax State Revenue (PNBP), export duties, larger dividends so that after adding up 70 percent of Freeport’s revenue goes to the state treasury. .
“Then also the Rokan Block, this is oil and gas which has been controlled by Chevron for 97 years. Now it is also 100 percent owned by us. I haven’t checked there yet, when the time is right I want to check whether there is an increase in production, an increase in income ‘ from a diversion like this,” said the President.
President Jokowi believes that the takeover of the Rokan Block can also support Indonesia’s target in 2030 to become a country with the 7th largest “Gross Domestic Product” in the world.
“And when Indonesia’s gold (birthday) counts, we are already in the top 4 or 5 in the world, as long as we continue to maintain this consistency. whoever the leader will be,” said the President. (mhn/bbs)
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