PT Well Harvest Winning Alumina Refinery ("WHW") is present in the country in line with Indonesia's progress which mandates the downstream concept that every mineral ore must be processed and refined domestically in order to provide valuable added value for the people of Indonesia. The mandate is contained in Law No. 4 of 2009 about Mineral and Coal Mining as amended by Law No. 3 of 2020 on Amendments to Law No. 4 of 2009 about Mineral and Coal Mining.
With the mentioned mandate of the Law, WHW became a concrete proof of the first downstream concept as a smelter company in Indonesia. We carry out the processing and purification of bauxite into alumina (SGA / Smelter Grade Alumina) with a rate of >98.6%. Since it has operated in June 2016, WHW has been able to maintain the production capacity of 1 million tons of SGA per year. With this capacity, WHW becomes the largest SGA company in Southeast Asia that markets alumina to domestic and foreign markets.
Mineral downstreaming not only provides more added value for each mineral, but also impacts the economy and absorption of local labor. From 2018 to 2020, WHW has contributed IDR 702 billion in state revenues. The achievement was obtained from the deposit of Income Tax (Income Tax) and PBB (Land and Building Tax) during the period.
The existence of WHW has a positive impact on the absorption of labor. As of February 2021, we have empowered a workforce of more than 3,000 people, of which 80% of the total employees are from West Kalimantan. We empower the local workforce by conducting a continuous Transfer of Technology ("ToT") program from Chinese experts to Indonesian workers.
The ToT program is WHW's strategy to improve the knowledge, skills, quality and performance of the Indonesian workforce, so that they are able to operate smelter equipment and machinery that refers to the development of the world. This is in line with the concept of downstream mineral industry that will be carried out entirely by the Indonesian workforce.
We have committed to build and advance Indonesia by enforcing good corporate governance (GCG) practices to improve the welfare and productivity of the nation. Through CSR (Corporate Social Responsibility) activities, we also carry out the development and empowerment of the community around the company in a sustainable manner in various fields, namely; education, health, infrastructure, economic independence, religious, socio-cultural, youth, and institutional strengthening of the community. CSR activities become a real form of WHW’s action for the advancement of a more prosperous local community.
We are very optimistic that in the future, the existence of WHW will be able to contribute even more to economic and community development. This is because we are currently building a second stage smelter with an additional production capacity of 1 million tons, so that later will be able to produce SGA to 2 million tons per year. The total investment for this project is more than USD 1.3 billion. With the increasing production capacity, WHW will grow and develop even better with the people of Indonesia.
We would also like to thank the community and other stakeholders who have given their trust and cooperation to work together with WHW, so that various achievements and business growth are carried out well. We are committed to continue to achieve mutual growth for the people of Indonesia.
CEO of PT Well Harvest Winning Alumina Refinery