Indonesia’s Ministry of Energy and Mineral Resources talks about bauxite export relaxation

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) said it would possibly ease some restrictions on bauxite ore exports, according to statements from ministry spokesperson Agus Cahyono Adi. This proposition followed discussions between ESDM Minister Arifin Tasrif and members of Commission VII of the House Representatives (DPR) related to possible relaxations they might bring in.

According to Agus, the discussions took place last week, and concrete decisions still need to be taken.

He also cited that the government had given three years of export relaxation for bauxite ores before President Widdo banned it, with effect from June 2023, to shore up the domestic processing of its mineral resources. By doing this, Indonesia wanted to replicate its success in nickel processing after banning the export of raw nickel material in January 2020.

“We had given them the opportunity for three years, based on the Law on Mineral and Coal,” said Agus Cahyono Adi.

Agus further mentioned that the government is also evaluating whether the funds generated from bauxite exports for three years would be sufficient for building an aluminium smelter.

Earlier, a member of Commission VII of the House of Representatives (DPR) had asked the ESDM ministry to grant export relaxations of several minerals, including bauxite, as construction of smelters was never completed.

Legislator Maman Abdurahman reported that the discussion last week between the minister and members of the House led to opening up opportunities for export relaxation to several mineral products that have yet to be able to build smelters.

“We still open the opportunity for several producers of mineral products that have not been able to build smelters. That’s why it is called certain metal minerals. This means that space is given to our colleague at the ministry to be able to classify, which minerals that can still be opened for export,” he said.

According to USGS survey, Indonesia is the world’s sixth-largest producer of bauxite, with reserves amounting to 1 billion tonnes. In 2023, the country produced 20 million tonnes of bauxite. In February 2024, the government authorised mining quotas for an additional 14 million tonnes of bauxite.