(There are 185 prospective investors for a smelter project in Halmahera.
The ministry will select the number before deciding which company will manage the project).
JAKARTA. The government will draw up a road map on smelter construction development in Indonesia.Thamrin said that the government has yet to decide the locations of smelters in detail.
However, the ministry of energy and mineral resources (ESDM) has seen eastern parts of Indonesia as ideal locations of smelters which are close to mining and energy resources. "The location should be not far from the locations of mining and energy sources,” said Thamrin.
The government has yet to make a decision on exact locations of smelter construction projects, but possibly the locations will be in eastern parts of Indonesia.
Thamrin Sihite, the director general of coal and mining at the ministry of energy and mineral resources (ESDM), said that the ministry is preparing a smelter cluster road map.
“To make better coordination between upstream and downstream industry, we will have talks with government officials at the ministry of industry,” said Thamrin on Sunday, August 05.
Deputy minister of energy and mineral resources, Rudi Rubiandini, said that Halmahera is one of locations of smelters as the region has nickel ores.
There will be around US$ 2 billion investment for a smelter project in Halmahera.
There are 185 prospective investors for the smelter project in Halmahera.
The ministry will select the number before deciding which company will manage the project.
Smelters Need Big Electricity Supply
Thamrin said that a smelter project needs much electricity and gas supply.
The smelter project in Halmahera, for instance, needs at least between 300 MMSCFD and 400 MMSCFD gas supply.
There will be much gas supply because a number of gas exports contracts will come to an end next year.
The government will switch gas supply to the domestic market instead.
Gas supply will be increased up to 1,000 MMSCFD by 2018.
The gas supply will be from Bontang refinery in East Kalimantan, Tangguh gas field in Papua.
Korean Gas (Kogas) and Sempra Energy are among gas producers whose contracts will come to an end.
"The remaining gas production will be switched to the domestic market with economical gas prices for the industry including new smelters.
The government will also build more gas infrastructure in other parts of Indonesia.
“It is better to build gas infrastructure in various areas though the gas capacity is not big instead of only building infrastructure for big gas supply only in one or two locations,” he said.