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Power supply has become a factor restricting the construction of smelters in Indonesia.
Jul 8,2020 15:14CST
The content below was translated by Tencent automatically for reference.

SMM7: according to local media reports, the Indonesian government's policy of banning the export of raw ore has proved to have an effective impact on the national economy, prompting the domestic processing and extraction of raw minerals through the construction of smelters, but the electricity supply is limited during the construction of smelters in Indonesia.

RyadChairil, president of the Indonesia Metallurgical Association, said that according to the results of a study by the Bank of Indonesia, the downstream mining policy has been able to boost economic growth in mineral areas. This is evidenced by the growth of the Sulawesi Nickel processing Industrial Zone which has seen significant growth in the Indonesian smelting industry since 2016. By 2021, it is estimated that there will be 58 smelters in Indonesia, most of them nickel smelters, reaching 33.

The potential of the Indonesian nickel derivatives industry is great, he said. This is because Indonesia has the largest nickel reserves in the world, at 1 billion tons. As the raw material of electric vehicle battery, nickel mineral is of great strategic significance in the future.

But there are obstacles to encouraging the development of Indonesia's smelting industry, one of the main obstacles is the limited power supply, which is usually located in areas not yet connected to the grid because the smelting industry is located adjacent to mines.

It is reported that with regard to the electricity supply to the smelter, the government estimates that 4200 megawatts of electricity will be needed by 2022. PTPerusahaanListrikNegara (Persero) faces the challenge of meeting the power supply to support the downstream programs that the government is promoting.

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