MIND ID Highlights the Importance of Downstream Processing, Saying Bauxite’s Value Could Rise 80-Fold
JAKARTA — Mining industry holding company MIND ID has highlighted the importance of mineral downstreaming in increasing the economic value of Indonesia’s natural resources. Processing bauxite into aluminium, for example, could raise its value from about US$40 per tonne of raw ore to US$3,200 per tonne of aluminium, an increase of 80-fold.
The difference in value illustrates the economic potential of processing minerals domestically. Through downstreaming, Indonesia can sell more than raw materials and develop processed products that supply industry with greater added value.
MIND ID President Director Dany Amrul Ichdan said the company’s strategic investments were directed at strengthening the national mineral industry. The efforts include developing processing and refining facilities, as well as building an integrated industrial chain from upstream to downstream.
One focus is the bauxite, alumina and aluminium industry in West Kalimantan. Integrating the production chain is expected to strengthen domestic aluminium supplies while increasing the use of mineral resources within Indonesia.
Alongside bauxite, MIND ID is promoting the development of a nickel-based electric-vehicle battery ecosystem. This includes industrial areas in Maluku and West Java to reinforce the national electric-vehicle supply chain.
The development of processing industries is also being advanced through a precious-metal refining facility in Gresik, East Java. These projects form part of MIND ID’s strategy to expand mineral-processing capacity and strengthen links between mining and manufacturing.
In the context of the national economy, Investment and Downstreaming Minister and Investment Coordinating Board (BKPM) Head Rosan Roeslani said Indonesia’s investment realisation over the past decade had reached about Rp9,100 trillion. Investment is one of the drivers of economic growth, including through the development of industries that increase the added value of natural resources.
Through investment in various downstreaming projects, MIND ID is seeking to increase the economic value of minerals while strengthening the national industrial structure. Developing industries from upstream to downstream is expected to support industrial self-sufficiency and improve Indonesia’s competitiveness in global supply chains.