Indonesia Ready to Halt Copper Ore Exports
- 01-Feb-2023 3:11 PM
- Journalist: Harold Finch
Jakarta [Indonesia]: The Indonesian government is taking measures to spur its industrialization process by looking to halt the export of unprocessed Copper ore. Following a successful similar policy on Nickel and Bauxite, President Joko “Jokowi” Widodo has stated that this move has great potential in furthering their goals.
Several years ago, when the ban on Nickel ore exports was imposed, the value of exported Nickel increased thirtyfold in just two years - from $1 billion to around $30 billion by 2022. According to the president, this decision has already proven to be beneficial for them and could prove even more so with Copper exports.
“We have stopped the export of Nickel ores, then we expanded the policy on Bauxite, and now we are calculating a plan to stop Copper [ore] exports in the near future,” Jokowi stated.
Indonesia's government has made it clear that they will not be backing down on their restriction of mineral ore exports, despite the challenges and push-back from the European Union as well as other countries. The government is standing firm in their decision to manage the nation's natural resources on their own terms, with no interference from foreign governments.
He cited an article from the 1945 Constitution which declared that natural resources should be utilized “to the greatest benefit of the people”.
“Therefore, I stated that not a single country can force us to export [raw minerals]. These resources belong to us so how come we aren’t allowed to process them inside our country?” Jokowi stated.
Starting June 2023, the president has imposed a ban on all Bauxite exports to foster the downstream industry. A similar policy was introduced on Nickel ore exports earlier this year, beginning January 1st, 2020.
“If we have no courage to move forward and easily back down from our policy because of pressures [from other countries], we can never become a developed country, because prosperity is generated from the added value of our natural resources,” Jokowi stated.
“Indonesia is not a closed economy. Our door is open to investment but please set up your processing plants here and run your industry in Indonesia so that we can create as many jobs as possible,” he added.
For years, the people of Indonesia have not been able to take full advantage of their own natural resources - a lack of diversification in exports has seen them receive little return for their efforts. Now, the government is fully committed to implementing domestic downstream industries that can turn these resources into tangible value for their people. Their determination is unwavering.
“If we are consistent with our policy, by 2027 we will own a huge ecosystem of electric vehicles and batteries. We are expecting a huge rush of the EV industry in Indonesia because the materials for batteries are here,” he stated.