Wednesday, September 27, 2023 | 14:29 WIB

Luhut threatens to shut down nickel smelter, here’s why


Jakarta, IO – Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan sternly warned nickel smelters to conduct business operations in accordance with prevailing regulations, including environmental standards. 

Indeed, Luhut emphasized that his ministry would not hesitate to shut down a smelter or even revoke its business license if it does not run its business in a proper and sustainable manner. “We have reminded them that if they do not comply with international standards with regard to the environment, they face the risk of being shut down,” said Luhut, Thursday (7/9). 

Luhut further said that the costs a company must spend to protect the environment, which according to him is “only” around US$10 million, are relatively insignificant compared to its total investment of around US$1-2 billion. 

Previously, Luhut appealed to all parties, especially entrepreneurs, to follow regulations in Indonesia, primarily in four areas, namely labor, technology transfer, environmental sustainability and industrial value added. 

“They have to comply with this. Otherwise, they cannot operate in Indonesia. We will conduct a review of this industry,” he stressed, Tuesday (25/7).

Luhut said the government would review six strategic nickel industrial estates in Indonesia. If one is found to violate the regulations, he said the government will not hesitate to take action against them. 

“As a first step, there will be a written warning from the government. After that there will be forceful measures, even administrative fines. If these are still ‘disobedient’, the government will suspend or even revoke their business license,” explained Luhut. 

Companies that violate prevailing regulations face the following sanctions: 

– Violation of noise standard will be subject to a maximum penalty of three years in prison and a maximum fine of Rp3 billion. 

Read: From Meeting Erdogan To Meeting Yoon Suk Yeol Of South Korea, What Has Jokowi Discussed?

– Intentional contamination of water supplies will be subject to a maximum fine of 10 years in prison and a maximum fine of Rp10 billion. 

– Toxic and hazardous waste (B3) disposal that contravene prevailing regulations will be subject to a minimum prison sentence of one year and a maximum of three years and a fine of at least Rp1 billion and a maximum of Rp3 billion. 

– Unauthorized storage of waste will be subject to a maximum penalty of three years in prison and a maximum fine of Rp3 billion. (des)


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