Whether It's Good Or Bad News, The Government Will Ban The Export Of Bauxite And Tin

Illustration. (Photo: Doc. Antara)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the government would ban the export of bauxite and tin this year as an effort to build mineral downstreaming.

In the Road to G20: Investment Forum "Encouraging the Acceleration of Sustainable and Inclusive Investment" Wednesday, May 18, Bahlil said the ban was an interpretation of President Jokowi's directives to build downstream and build industries based on new, renewable and environmentally friendly energy.

"We from the Ministry of Investment translate the economic transformation through downstreaming with a natural resource management approach. Nickel, we will stop. Bauxite will soon be stopped. In 2022 we will stop bauxite and in late 2022 we will also stop exporting tin," he said, d follow from Antara.

According to Bahlil, the cessation of mineral exports will encourage downstreaming which will provide maximum added value for the country.

He said that the ban on nickel exports imposed by the government has proven to actually increase exports of nickel derivative products, namely stainless steel.

"What happens, in 2022, our exports of nickel products are only 2 billion US dollars. And in 2022, downstream exports of stainless steel, it has reached 20 billion US dollars," he said.

The ban on exports of mining and mineral commodities is also considered to have a positive impact on the trade balance, especially with China.

"Even now, our trade balance deficit with China is no more than 2 billion US dollars. In 2022, there will definitely be a surplus in our trade balance with China, our contribution from nickel downstreaming," he said.

Previously, Indonesian President Joko Widodo (Jokowi) said the government's courage to stop the export of mining raw materials had a positive impact on the trade balance, so the policy would be continued.

"Our courage to stop it (export of nickel ore raw materials) is showing results. Therefore, we continue to stop bauxite, copper, tin, and others," said the President.

The government also plans to continue the policy of stopping the export of mining raw materials for bauxite in 2022, and then copper, and others.