Vinnilya Huanggrio, Jakarta – The Indonesia Mining Association (IMA) recently denied claims that China benefited the most from Indonesia's decision to push for the domestic processing of nickel.
Chinese investment dominating Indonesia's nickel sector has sparked concerns that the domestic processing policy mostly benefited Beijing. Not to mention concerns that the investment had brought in an influx of foreign workers. Indonesian nickel smelters also mostly used Chinese technologies.
"I believe that we benefit the most. [The Chinese investors] pay taxes and are contributing to the country," IMA executive director Djoko Widajatno said in Jakarta on Wednesday.
"But because we do not have the technology. But because we do not have the technology. If only the technology is ours, of course, we would reap greater profits," Djoko said.
According to Djoko, the nickel domestic processing has resulted in profits worth trillions of rupiahs. Djoko hopes the future government will think of ways to create better-selling finished goods, by the next trade, energy, and industry ministries. Djoko said that the foreign workers in the Morowali industrial estate represented only about 6-10 percent of the total workforce. "A Chinese expert usually accompanies several operators," Djoko said.
Djoko said that the knowledge transfer between foreign and local workers had not been optimal, and this needs to be improved.
"There are language barriers. I'm learning Mandarin. I can't help it," Djoko said.