The Directorate General of Minerals and coal (Minerba) of the Ministry of Energy and Mineral Resources (ESDM) reported that investment in the integrated smelter sector has reached USD 7.8 billion, accompanied by Non-Tax State Revenue (PNBP) contributions that exceeded IDR 56 trillion as of mid-May 2026.The Director General of Minerals and coal at KESDM, Tri Winarno, explained that the acceleration of mineral processing infrastructure development continues to show a positive trend. Currently, the mineral refining industry ecosystem in Indonesia is reinforced by over a dozen integrated smelters spread across various strategic commodities."We need to convey here that to date, there are 14 integrated smelters that are part of the mineral downstream development in Indonesia, with a breakdown of 6 smelters for nickel, 6 smelters for bauxite, 1 copper smelter, and 1 iron smelter," Tri said during a Hearing (RDP) with Commission XII of the House of Representatives (DPR RI) in Jakarta, Tuesday (5/19/2026).Tri detailed that out of the total 14 smelter projects, five units have been fully built (commissioning), while the other nine units are still in the completion process. The presence of these smelters serves as the backbone for domestic concentrate refining, including strategic projects such as PT Aneka Tambang Tbk (Pomalaa), PT Vale Indonesia Tbk (Sulawesi), PT Wanatiara Persada, PT Weda Bay, and PT Freeport Indonesia at JIIPE Gresik.Installed CapacityBased on operational data, Tri explained that the foundation of the national mineral processing industry has begun to form on a massive scale. Nickel smelters recorded a total input capacity of 24.9 million tons per year, with an output capacity reaching 924,780 tons per year for intermediate products.Meanwhile, copper smelters have an input capacity of 2 million tons per year with an output of 460,000 tons of copper cathodes per year. In the iron sector, the input capacity was recorded at 4 million tons per year with an output of 1.7 million tons per year. As for the bauxite commodity, the input capacity reached 19.6 million tons with an output of alumina amounting to 7.4 million tons per year."These figures indicate that the foundation of the mineral processing industry is beginning to take shape," Tri emphasized.Fiscal ContributionThe solid operational performance has also made an instant impact on state revenue. Tri revealed that the actual PNBP from the mineral and coal sector continues to show a significant upward curve compared to the same period in the previous year."In terms of PNBP, the current realization of the Directorate General of Minerals and coal from January to April reached 48.95 trillion. Actually, if pulled up to May 15, it reached 56 trillion, representing a 6.21% year-on-year increase," he explained.Tri added that the overall PNBP target for 2026 is projected to increase, surpassing the actual realization achieved in 2025.Nevertheless, Tri provided a strategic note that the massive capacity of this refining industry must be accompanied by the principles of careful governance (prudence). This is essential to maintain the sustainability of raw material supplies as well as long-term investment certainty."Downstreaming must be managed carefully. A large capacity naturally requires a large and orderly supply of raw materials, good occupational health and safety (K3) governance, investment certainty, and a balance between industrial power, state revenue, and resource sustainability," Tri Winarno concluded.
Source https://djakarta-miningclub.com