The government will continue to consistently carry out domestic downstreaming as an effort to bring more added value for our domestic commodities for the sake of our people's welfare.
Jakarta (ANTARA) - President Joko Widodo (Jokowi) has announced that Indonesia will stop exporting bauxite ore from June 2023 to boost the domestic processing industry.

"Starting in June 2023, the government will impose a ban on bauxite ore exports and encourage the domestic bauxite processing and refining industry," he said at the Merdeka Palace in Jakarta on Wednesday.

He was accompanied by Coordinating Minister for Economic Affairs, Airlangga Hartarto, and Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif.

According to President Jokowi, the government will continue to commit to realizing natural resource sovereignty and increasing added value, especially for opening more job opportunities, increasing foreign exchange earnings, and ensuring more equitable economic growth.

"Therefore, the government continues to improve the domestic natural resource processing industry. Exports of raw materials will also be reduced and the downstreaming of natural resource-based industries in the country will continue to be increased," he said.

The government banned nickel ore exports starting January 1, 2022, he noted.

"As a result, the initial export value of nickel was only Rp17 trillion or equivalent to US$1.1 million at the end of 2014, now it has reached Rp326 trillion or US$20.9 million in 2021, or an increase of 19 times," he pointed out.

He estimated that in 2022, the value of nickel will cross Rp468 trillion or more than US$30 billion.

"This is just one commodity, therefore this success will be continued for other commodities," he said.

Through the industrialization of bauxite in the country, the state revenue is expected to increase from Rp21 trillion to around Rp62 trillion, he added.

"The government will continue to consistently carry out domestic downstreaming as an effort to bring more added value for our domestic commodities for the sake of our people's welfare," he said.

Related news: Downstreaming industry can help RI escape middle-income trap: Minister
Related news: Government mulls over ban on bauxite, tin exports this year








Translator: Desca Lidya N, Resinta S
Editor: Rahmad Nasution
Copyright © ANTARA 2022