On 19th October 2021, the President of Indonesia, Joko Widodo stated the country is planning to put brakes on the export of all crucial raw commodities in an attempt to entice investment in onshore resource processing and job creation.
The world’s largest island nation, Indonesia has banned a number of crude ore exports including nickel, tin and copper in a bid to vitalize downstream industries, comprising the manufacturing of batteries for EV and the aluminium industry.
Presently, the Indonesian government is conducting a feasibility study for the downstream of other commodities with a long-term vision of no longer just selling just raw materials, the President said in the village of Bebatu on Borneo Island.
The President added: “A new policy would hopefully emerge next year. Don’t be surprised. We had a nickel (export ban) before. Next year, we may stop bauxite, the next year we may stop something else.”
However, as per contemporary regulations, Indonesia will ban bauxite shipments in 2023.
“We really want to hit the brakes on exporting raw materials because there is no value addition and it does not create jobs. The policy would affect all commodities”, he said.
Responses
