REGULATION DEVELOPMENT OF INCREASING NICKEL ADDED VALUE IN INDONESIA

PERKEMBANGAN REGULASI PENINGKATAN NILAI TAMBAH NIKEL DI INDONESIA

Abstract

One of the mining industry's characteristics is non-renewable, therefore its management should be optimal, efficient, and environmentally oriented. The Indonesian government has established the mining law as a main regulation in carrying out mineral and coal mining activities. The regulation related to the mining industry was Act No. 11/1967, which was then replaced by Act No. 04/2009. Implementing rule of the Act No. 04/2009 is regulated through a Government Regulation (PP). To implement this government regulation, a Minister Regulation is then needed to be issued. The main objective of this research is to know the development of the downstream mining industry related to increasing value added, especially nickel. The method used in this study is a descriptive method that describes secondary data in the form of documentation obtained from various sources. The results show that the implementation of Act No. 04/2009 has obligated the mining companies to build their smelters to run mineral processing and metal refining in five years, which can increase the value-added of minerals, including nickel. Therefore, according to the act, in 2014 raw ore exports should be banned. This condition results in a decrease in raw ore export. The construction of a smelter is used to process and purify nickel with levels above 2%. However, in Indonesia, there is still nickel ore with levels below that level. Therefore, Ministerial Regulation No. 05/2017 was issued to overcome this problem, which is currently being replaced by ministerial regulation No. 25/2018.