M Julnis Firmansyah, Jakarta – Indonesian President Joko Widodo or Jokowi responded to criticism voiced by a senior economist from the Institute for Development of Economics and Finance (INDEF), Faisal Basri, that the country's downstream nickel policy only benefits China. He argued that Faisal's logic was not correct.

Indonesia, he pointed out, would gain a lot of benefits from the downstream. This was evident from the value of exports, which had risen sharply from Rp17 trillion to Rp510 trillion.

"What's his calculation? If we calculate it, I'll take nickel as an example. When raw materials are exported, the value is only about Rp17 trillion per year. After downstream, it becomes Rp510 trillion. This is huge," Jokowi said at the LRT Dukuh Atas Station, Central Jakarta, Thursday, August 10, 2023.

The government receives additional taxes

The President explained that the government would receive more Value Added Tax (VAT), corporate income tax (PPh), employee income tax, corporate income tax, royalties, export duties, and non-tax state revenue than the downstream project.

He then questioned people who say that the downstream industry policy only benefits China.

"The logic is not like that, the logic is in the numbers. The GDP contribution is less, it's greater. What's the logic," he remarked.

Previously, Faisal Basri said that China had greatly benefited from Indonesia's downstream nickel policy, reaching 90 percent of the total profit. He believed Indonesia should prioritize industrialization policies that could strengthen the economy rather than downstream policies.

Source: https://en.tempo.co/read/1758248/jokowi-responds-to-criticism-of-downstream-nickel-benefiting-chin