Perpustakaan Digital ITB

As the industrial sector grows in Indonesia, the need of raw materials also increases, including metal-containing intermediate goods. Unfortunately, most of the need of metal-containing products are still imported, even though Indonesia is known as one of the world’s largest producers of various minerals. To end this ironic condition, the Government requires the holders of IUP and IUPK of Production Operations to undertake processing and refining activities on domestic mine products before being exported. It is regulated under the Article of 102 and 103 of the Law of the Republic of Indonesia Number 4 of 2009 on Mineral and Coal Mining (“Mining Law”). The issuance of the regulation boosts the development of mineral downstream industries, including nickel. Currently Indonesian nickel ore is processed domestically into nickel hydroxide (NiOH), nickel matte, ferronickel and Nickel Pig Iron (NPI). However, it is unfortunate that almost all of those products are exported and Indonesia imports nickel semi-finished goods, such as stainless steels, alloys, batteries and nickel chemicals, due to low capacity of nickel-based industries. On the other hand, one of the indicators that signify the success of the increase in mineral added value is the high domestic absorption. It is in accordance with the objectives stated in Regulation of Government of Republic of Indonesia Number 23 of 2010 (PP no. 23/2010) Article 95 paragraph (2), that is to ensure the availability of raw materials to meet the needs of national industries and to optimize the state revenue. Given that nickel is a nonrenewable natural resource, immediate action should be taken to enhance Indonesian nickel value chain. However, the right policy can only be formulated if a comprehensive system of nickel value chain in Indonesia is analyzed to gain a deep understanding of its structure and behavior. As an analytical tool, a model is developed with system dynamics method to illustrate the Indonesian nickel value chain system and its dynamics. A preliminary model shows that the development of nickel-based industry in Indonesia will increase domestic absorption of smelter products and decrease the import of nickel-containing intermediate goods. This