Next year Indonesia will ban the export of bauxite. This is what President Joko Widodo said. Indonesia is the sixth largest exporter of the ore used to make aluminum. The ban could drive up prices of the commonly used metal, found in beverage cans, refrigerators and airplanes, among other things.
The export ban will come into effect in June 2023. In this way, Widodo wants more bauxite to be processed in his own country. Consequently, ‘the added value remains in the country, to the benefit of people’s progress and prosperity’. “From June 2023, the government will impose bauxite ore export ban and boost domestic bauxite processing and refining industry,” the president said in his press release at Jakarta’s Merdeka Palace.
The president stressed that the government continues to make efforts to improve the natural resource processing industry in the country. The government will also continue to reduce exports of raw materials while boosting downstream natural resource industries.
“The government is committed to realizing sovereignty over natural resources and increasing value added in the country, especially in order to create as many jobs as possible and increase foreign exchange, as well as [het bereiken van] more equitable economic growth,’ says Widodo.
Protectionism
It is not Indonesia’s first protectionist intervention under Widodo and, according to him, it will not be the last. It had previously restricted the export of nickel, an important raw material for electric car batteries, for example. The World Trade Organization has spoken out after a complaint by the European Union that Indonesia has violated international free trade rules. Jakarta appealed that decision.
Own refinery
Indonesia, Southeast Asia’s largest economy, increasingly wants to process its natural resources within its borders instead of directly selling them abroad. Earlier this month, Widodo said Indonesia is not striving for a fully open economy, because such a model would have lagged the growth of, say, Latin American countries for decades.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
