The Head of the Fiscal Policy Agency (BKF) at the Ministry of Finance, Febrio Nathan Kacaribu, estimates that the copper downstreaming program could raise Indonesia's export value to USD 16 billion to USD 18 billion annually. Without downstreaming, Indonesia's copper concentrate exports are only USD 8 billion to USD 9 billion. In a meeting with the House of Representatives' State Finance Accountability Agency (BAKN) on 10 July 2024, Febrio illustrated this point using copper exports by major companies like PT Freeport Indonesia and PT Amman Mineral. These companies' copper concentrate exports are expected to reach USD 8 billion to USD 9 billion annually. The government has insisted that these companies build smelters to add value to Indonesia's natural resources, particularly copper. Febrio acknowledged that the copper downstreaming policy might temporarily reduce non-tax state revenue (PNBP). However, he emphasized that the added value from copper processing would significantly benefit the economy. "The PNBP may not increase immediately, but the high value added from downstreaming will generate substantial revenue through profit shares, dividends, and taxes," he said. The copper downstreaming in Indonesia is nearing realization with the commencement of the Manyar smelter operations in Gresik by PT Freeport Indonesia, expected to be fully operational by the end of 2024. Febrio noted that the smelter's operation disproves previous doubts about copper concentrate, which also contains gold and silver. "We realize that our copper concentrate also includes gold and silver," he added. With downstreaming, Febrio projects Indonesia's export value could double. "Previously, exports were USD 8 to USD 9 billion annually. With downstreaming, the expectation is that export value will double due to the inclusion of gold and silver," he stated.https://www.cnbcindonesia.com/news/20240711063347-4-553563/hilirisasi-tembaga-bisa-bikin-ekspor-ri-melejit-us--16-m-per-tahun (ICE GIACARTA)

Fonte notizia: CNBC Indonesia, 11 July 2024