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Some Chinese investors met with South Buton Regent Muhammad Adios at the regent's office in South Buton, Southeast Sulawesi Province on July 25, 2025. They plan to build a smelter for bitumen or asphalt in Sampolawa District, South Buton Regency.
The investors' intention is in line with Adios' plan for the development an industrial area with an industrial port focused on Sampolawa Bay to drive South Buton Regency's economic development. The South Buton Regional Spatial Plan being drafted by the local government would integrate the regent's industrial area plan.
"Investors are coming forland prepared by the government. They are ready to invest for a smelter," said Musni, a Buton asphalt observer who accompanied the Chinese investors.
The investors were escorted to the Rongi B5-30 mine, the Kabungka B5-20 mine, and the Lawele B50-30 mine. The smelter's estimated production capacity is 2.5 million tons per year. If the asphalt price is at the Rp 300,000-400,000 per ton range, the smelter could generate Rp 1 trillion of gross revenue per year.
"The most expensive [local] asphalt is from Rongi [B5-30 mine], with a asphalt content of 30 and a penetration of 5. Because Rongi asphalt is a hard asphal, itt has almost no tailings when processed. [Almost] all of it is utilized," explained Musni.
All the minerals contained in it are used for pure asphalt, with a maximum of 10 percent of the tailings being discarded.
In comparison, Musni noted, is asphalt from the Lawele B50-30 mine. The extraction results of PG 70, PG 76, and PG 82 based on asphalt from the mine would produce 80 percent tailings.
"Assuming the asphalt content is 20 percent, that means what's discarded is waste," he said. "It could actually be used for lightweight bricks and cement, but who would buy it?"
Musni informed that the smelter would procure asphalt from all three mines if the investment in Sampolawa is realized. The smelter is planned to be built in the Sampolawa industrial area.
"[The exact location] is currently being reviewed by experts," he divulged.
Musni revealed that the asphalt deposit in the Rongi mine is already quite large, but the ones in Lawele and Kabungka are even larger. He also revealed that the investors involved have also built smelters in Palu City, the Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera Regency, North Maluku Province, and the Nusantara Capital City near East Kalimantan Province.
"That's why they're interested in building here because the raw materials are close by. They said the price is cheaper here," Musni explained. "The extracted product will be exported. We also have the extraction machines; it's just a matter of collaboration."
