We Will Stop Exporting Bauxite, Copper and Tin

Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) is committed to encouraging downstreaming of natural resources (SDA). Therefore, Jokowi plans to close the export of raw materials from bauxite, copper, tin and others.

“We will stop (export) bauxite, copper, tin, and others. Downstream is the key to increasing our exports,” said Jokowi at the opening of trading on the Indonesia Stock Exchange (IDX) 2022, Monday (3/1/2021).

Indonesia’s exports will surge dramatically in 2021 in line with rising international commodity prices. In addition, it is also caused by Indonesia’s policy to stop the export of some raw natural resources.

“One of the reasons why our exports have risen that high is because we have stopped the raw material from our mineral and coal mines, namely nickel,” he explained.

Indonesia has the number 1 nickel reserve in the world which reaches 21 million tons or 24 percent of the world’s total reserves. Indonesia’s nickel production in 2020 will reach 781 thousand tons or 31.8% of world nickel production. Going forward, nickel production is expected to continue to increase, both for nickel pig iron (NPI) production and high-pressure-acid-leach processing from low grade ore.

The increase in added value from nickel ore to ferronickel products is 14 times, and if it becomes stainless steel billets it will be 19 times. Currently, nickel smelters in operation have reached an investment of US$ 15.7 billion, with a ferronickel production capacity of 969 thousand tons per year.

Exports of ferronickel products also increased very rapidly from year to year, where in 2020 it reached US$ 4.7 billion, and in the period January to October 2021 it was recorded at US$ 5.6 billion.

Jokowi hopes that in the future the increase in exports will continue to occur so that it can encourage the country’s economic recovery. “I think our courage to stop is showing results,” he said.

[Gambas:Video CNBC]

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