Downstream Jokowi Translucent IDR 510 T, Faisal Basri: not RI Cuan

Jakarta, Klinik Farma – Faisal Basri, Senior Economist at the Institute for Economic Development and Finance (Indef), said Indonesian President Joko Widodo’s reported IDR 510 trillion profit from nickel mining in Indonesia does not actually belong to Indonesia.

Faisal said that 90% of domestic nickel proceeds went to China, while Indonesia received only 10%. Faisal explained this by saying that the nickel refineries established in Indonesia were mostly Chinese companies.

“This is beneficial not only for China, but also for us, but about 90% goes to China. Then Mr. Jokowi said that we make a profit in terms of CNBC, 500 trillion rupees, it is received from exports. increase, but remember that exports are partly carried out mainly by Chinese companies, whose exports do not reach Indonesia. At least if they are brought to Indonesia for only 1 day, they will bring them the next day, and that is their right,” Faisal said. explained CNBC in Indonesia in the Mining Zone program quoted on Tuesday (August 15, 2023).

Meanwhile, he said that the downstream benefits claimed by President Jokowi do not really belong to Indonesia. Faisal said that Indonesia is demanding money that does not belong to him.

“So why is it so easy for us to claim that other people’s money is our money? What is certain is that it is not our money. Now, an extraordinary increase from 1 trillion rupees to 500 trillion rupees, this is widely disclosed,” Faisal added. .

He said that it was a Chinese business strategy in which all the capital came from Chinese-owned companies, so that their right to return profits made in Indonesia was transferred to China.

“This is their business strategy, and even many national companies are investing in Singapore, and these are foreign companies whose capital is 100% from China, which they bring to China,” he explained.

Septian Hario Seto, Deputy Coordinator for Investment and Mining at the Coordinating Ministry of Maritime Affairs and Investment, said that Indonesia has managed to generate tax revenue, especially due to the nickel mining tax holiday in 2022, reaching IDR 17.96 trillion. This has increased dramatically compared to 2016 which was only IDR 1.66 trillion.

“Tax revenue in 2022 from the nickel refining and refining sector will be IDR 17.96 trillion, or 10.8 times more than in 2016 when it was IDR 1.66 trillion,” Seto said in a written statement, quoted by Tuesday (August 15, 2023).

Seto also said government corporate income tax (PPh) revenue for the nickel refining sector will reach IDR 7.36 trillion in 2022, up sharply from just IDR 0.34 trillion last year in 2016.

“In 2022, corporate income tax revenue is 7.36 trillion Indonesian rupiah, which is 21.6 times more than in 2016, when it was 0.34 trillion Indonesian rupiah,” he added.

Seto said that if the nickel recycling policy had not been implemented since 2020, tax revenues would not have increased significantly. He said the 2019 nickel ore export revenue and export tax revenue was only IDR 1.55 trillion, or 10% of the value of nickel ore exports.

“If the nickel ore export policy is continued using 2019 data, export tax revenues will amount to only US$0.11 billion (Rs. 1.55 trillion) or 10% of the value of nickel ore exports of Rs. US dollars. This figure is even smaller when compared to tax revenue from the nickel refining sector of IDR 3.99 trillion in 2019,” he said,” Seto added.

Previously, President Jokowi also opened his voice and said that nickel recycling will benefit Indonesia. Jokowi actually questioned the calculations of Faisal Basri, who said that the downstream benefits other countries.

“How’s the count? If I give an example of nickel, when it is exported in its raw form, the raw material is only 17 trillion rupees per year after it enters the industrial sector. downstreamdownstream to IDR 510 trillion,” President Jokowi explained in response to Faisal Basri’s announcement of nickel refining at Dukuh Atas LRT station in Jakarta, quoted on Friday (November 8, 2023).

“Just imagine that our country only collects taxes, takes a tax on 17 trillion rupees and takes a tax on 510 trillion rupees, which is more? state duties, non-tax revenues of the state – all this is there. Just try to calculate, from 17 trillion rupees to 510 trillion rupees, how big is that?” explained President Jokowi.

[Gambas:Video CNBC]