We will stop exporting bauxite in 2022 and tin in late 2022Jakarta (ANTARA) - The Indonesian government is contemplating on imposing a ban on bauxite and tin exports this year as part of the efforts to develop the downstream mineral industry, a minister stated.
The ban is an interpretation of President Joko Widodo's directive to develop the downstream industry and build a new and renewable energy-based and environmentally friendly industry, Minister of Investment/Head of the Investment Coordination Board (BKPM) Bahlil Lahadalia stated during the Road to G20: Investment Forum monitored in Jakarta on Wednesday.
"We will stop exporting bauxite in 2022 and tin in late 2022," he remarked.
He believed the ban on mineral exports will encourage development of the downstream industry that will contribute maximally to the national income.
The government has also halted nickel exports.
The ban on nickel exports has proven effective to increase the export of nickel derivative products, including stainless steel, he stated.
"What has happened in 2022 is that nickel exports only reached US$2 billion, while stainless steel exports from the downstream industry had soared to US$20 billion," he remarked.
The ban on the export of mining and mineral commodities also has had a positive impact on the country's balance of trade, particularly with China.
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"In fact, the deficit of our trade with China is currently not more than US$2 billion. (We believe) that our trade balance with China will record a surplus in 2022 (due to) the contribution from our downstream nickel industry," he stated.
Earlier, President Joko Widodo affirmed that the government's bold step to stop exporting mining raw materials has had a positive impact on the country's balance of trade, and so, the government will go ahead with the policy.
"Our courageous move to stop (exporting crude nickel ore) has been fruitful. Hence, we will stop the export of bauxite, copper, tin, and so on," the president remarked.
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Translator: Ade irma Junida, Suharto
Editor: Rahmad Nasution
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