Nickel smelters do not pay royalties in Indonesia

Longki Djanggola, the governor of Central Sulawesi Province, was angry with the smelter companies in his area because they did not pay royalties to the state treasury in the region. The local government has made every effort to provide convenience and to ensure safe investment environment.

The local government believes that the establishment of a smelter to produce nickel pig iron (NPI), especially in the Morowali and North Morowali regions, will not only create new employment opportunities, but also contribute to increasing the original income of the region. “Smelters have already made considerable profits from nickel ore processing.” After issuing regulations on increasing the value-added of minerals through processing and refining activities in 2012, the local government hopes to increase tincome because many smelters have been built in the area, such as in the Morowali and North Morowali areas.

The local government is trying also increase the profit sharing for the production of nickel pig iron (NPI) produced by the smelters – Longki Djanggola said. “But obviously, this hope does not match reality.”