Indonesia, with the sixth-largest bauxite reserves in the world, reportedly believes that its bauxite downstream can reach US$13 billion next year from the current US$9 billion.
Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan pointed out that the country, despite having the sixth-largest bauxite reserves in the world, only exports the ore.
President Joko Widodo said he recently directed to enhance processing to increase the value of the processing industry. He added if bauxite was processed into various derivatives, the value could go up to 11 digits, and this potential had not been maximised yet.
The Indonesian government will consider accelerating an export ban on bauxite and other mineral items such as tin and alumina, among others, depending on the scale of investment, Widodo revealed, while adding that under the current rules, exports of bauxite are allowed till January 11, 2022.
President has encouraged the development of the bauxite processing industry to be accelerated, including PT Indonesia Asahan Aluminum in collaboration with PT Aneka Tambang Tbk via its subsidiary PT Borneo Alumina Indonesia (PT BAI0 to build a bauxite-to-alumina plant in Mepawah.
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