Constrained Funding Hampers Smelter Projects

Several international financial institutions have committed to no longer providing funding for mining projects, including for the smelter construction in Indonesia. Ridwan Djamaluddin, Director General of Mineral and Coal, revealed that four international financial institutions that did not want to provide funding for smelter projects in Indonesia were the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), World Bank, and International Finance Corporation (IFC).

Nevertheless, three Japanese investors are expressing their interest in Indonesia's smelter construction, such as Sumitomo Metal, Mitsui, and Toyota Tsusho. In terms of funding sources, the government has identified several banks and international financial institutions that have the potential and interest in financing Indonesia's smelter construction. "These include the Bank of China and the Japan Bank of International Corporation," he said at a hearing with the House Energy and Mining Commission on Wednesday.