JAKARTA, JAKTIMES.COM – Indonesian President Joko Widodo (Jokowi) once again emphasized the government’s commitment to continuously carry out industrial downstreaming to add value within the country.
“Any country, any international organization, I believe, cannot stop our desire for industrialization, for downstreaming from exporting raw materials to semi-finished or finished goods. Because we want the added value to be within the country,” stated the President in his press release in Jakarta on Thursday (08/10/2023).
Since January 1, 2020, the government has stopped the export ban on nickel ore. Furthermore, on June 10, 2023, the government implemented a policy banning the export of bauxite ore. Additionally, the government will also halt the export of raw copper. The President stated that the cessation of raw material exports is capable of significantly increasing export value.
“If we calculate, for example, let’s take nickel. When it’s exported in its raw form, raw materials, it’s about Rp17 trillion a year. After it goes through downstreaming, through downstream industrialization, it becomes Rp510 trillion,” he explained.
The increase in export value, the President added, also triggers an increase in national income, starting from taxation sectors such as value-added tax (VAT), income tax (PPh), to non-tax state revenues (PNBP).
“From downstreaming, we can obtain VAT, corporate income tax, employee income tax, company income tax, royalties, export duties, non-tax state revenues, everything is there. Just try to calculate, from Rp17 trillion to Rp510 trillion, which one is bigger?” he stated. (Wan)
