Silica commodity has a great potential to be developed as raw materials for the semiconductor industry. This industry has prospects as a foreign exchange earner and a creator of a large number of jobs.

Therefore, Indonesia needs to promote the development of upstream and midstream industries by advancing the downstream processing of silica into solar-grade silicon (SGS) and electronic-grade silicon (EGS) wafers.

Silicon wafers are the building blocks for the semiconductor and solar cell industries. However, according to Ignatius Warsito, an Expert Staff in Strengthening Domestic Industry Capabilities at the Industry Ministry, there is currently no industry in Indonesia that processes silica into solar-grade silicon wafers.

The downstream processing of silica into silicon wafers is expected to support the self-reliance of the domestic photovoltaic (PV) module and semiconductor industry. To achieve the development of downstream processing of silica into silicon wafers, several supporting activities need to be carried out, such as the development of a comprehensive roadmap for the silicon wafer industry and the establishment of a comprehensive industrial framework.

Wiwik Pudjiastuti, the Director of Cement, Ceramics, and Non-Metallic Mineral Processing Industries of the Industry Ministry, stated that according to data from the Energy and Mineral Resources Ministry, there are 328 silica sand reserve companies, 98 mining business license holders (IUP), 82 exploration IUP holders, with a realization of silica sand mining in 2021 amounting to 2.01 million cubic meters and a total reserve of 330 million tons.

The potential locations for silica sand mining are in Bangka Belitung, Central Kalimantan, and West Kalimantan, with possibilities in other areas as well. "As for quartzite, the total resource amounts to 297 million tons, with the main potential mining locations in Aceh," explained Wiwik.

Wiwik explained that based on the National Industry Information System (SIINas) at the Industry Ministry, there are currently 21 silica sand processing companies with an installed capacity of 738,536 tons per year (tpy), and the production volume realization from nine companies in 2022 was 404,755 tons.

According to her, out of the nine companies spread across Java and Kalimantan, the utilization rate is 68.48%. As for the types of products, silica sand, silica flour, and resin-coated sand are still in demand.

Regarding the potential raw materials for the PV and semiconductor industries, Statistics Indonesia (BPS) 2022 data states that the potential import substitution value for Silicon Wafers reaches US$17.7 million, US$120 million for semiconductor products, US$6.2 million for unassembled solar cells, and US$65.9 million for assembled solar cells.

"If these can be prepared domestically, it is undoubtedly a huge potential for Indonesia, so the potential for import substitution of processed silica products as raw materials for the PV and semiconductor industries can be realized," said Wiwik.

According to the plan, starting this year, the Industry Ministry will formulate a policy action plan for the downstream processing of silica/quartz commodities, beginning with the drafting of a roadmap for downstream processing of silica into silicon wafers for the period 2025–2035 to achieve self-reliance in the PV module and semiconductor industry, which will commence this year. Then, the finalization of the roadmap for downstream processing of silica into silicon wafers for the period 2025–2035 will begin in 2024, followed by the development of regulations of the Industry Minister related to this roadmap.

In the industrial world, the use of silica sand is quite extensive. For example, it is used for the glass, cement, concrete, ceramics, textiles, paper, cosmetics, electronics, paint, film, toothpaste, and other industries. Most can still use silica sand with a SiO2 content of 99.5%, but impurities can be as high as 200 ppm.

Previously, Indonesian President Joko Widodo (Jokowi) firmly prohibited the export of silica sand or quartz sand. According to President Jokowi, silica or quartz sand has 60,000 derivatives with significant added value.

"In 2027, the EV (electric vehicle) ecosystem must be completed. All downstream processing, including silica sand, will also be prohibited from export. I have calculated that silica sand has 60,000 derivatives, which offer substantial added value," Jokowi stated at the State Palace some time ago.

The Indonesian Quartz Miners Association (HIPKI) revealed that Indonesia began exporting quartz sand in 2020. All of these exports, 100%, were directed to China. Indonesia has displaced other countries like Australia, Cambodia, and Pakistan in exporting quartz sand to China.

Currently, Indonesia is not only exporting quartz sand but also utilizing it domestically in the cement and brick industries. The domestic utilization of quartz sand accounts for 80%, while the remaining 20% is exported.

Writer: Eri Sutrisno
Editors: Ratna Nuraini/Elvira Inda Sari/Erik Limantara
Translator: Irvina Falah