10 JUNE 2013Thejakartaglobe.com
Russia plans to set up aluminum plant in Indonesia
Edited by : AL CIRCLE
2 min read
Russia has communicated its desire to construct an aluminum processing plant in Kalimantan and further its investments in Indonesia.
A delegation of Russian officials and businesses are expected to visit the archipelago on June 11-12 to look into the plant as well as other investment opportunities, according to Rizal Affandi Lukman, the deputy minister for economic and international financing cooperation.
Indonesia, which is set to ban raw mineral exports in January of next year to encourage the construction of refineries and smelters, is welcoming the move, he added.
“If they want to build a processing plant, that would be recommended. They would be given an incentive, as specified in the Mineral and Coal Law”, said Rizal.
He added that if Russia agreed to build a processing plant, the products could be channeled to aluminum producer Indonesia Asahan Aluminium (Inalum), which the Indonesian government is seeking to fully acquire from Japan.
Indonesia last year asked all miners to submit plans to build refineries or smelters ahead of the January 2014 ban on raw mineral exports. A 20 percent tax on ore exports was levied as a result.
The government hopes construction will have started on at least 10 smelters by the end of the year when a more concrete processing policy will be in place, he added.
A delegation of Russian officials and businesses are expected to visit the archipelago on June 11-12 to look into the plant as well as other investment opportunities, according to Rizal Affandi Lukman, the deputy minister for economic and international financing cooperation.
Indonesia, which is set to ban raw mineral exports in January of next year to encourage the construction of refineries and smelters, is welcoming the move, he added.
“If they want to build a processing plant, that would be recommended. They would be given an incentive, as specified in the Mineral and Coal Law”, said Rizal.
He added that if Russia agreed to build a processing plant, the products could be channeled to aluminum producer Indonesia Asahan Aluminium (Inalum), which the Indonesian government is seeking to fully acquire from Japan.
Indonesia last year asked all miners to submit plans to build refineries or smelters ahead of the January 2014 ban on raw mineral exports. A 20 percent tax on ore exports was levied as a result.
The government hopes construction will have started on at least 10 smelters by the end of the year when a more concrete processing policy will be in place, he added.
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