Member Of Commission VII DPR Asks Government To Open Bauxite Export Faucet

Bauxite (Photo: Antara)

JAKARTA - Deputy Chairman of Commission VII DPR RI Maman Abdurrahman asked the government to reopen the tap for exports of bauxite commodities. Just so you know, the government has banned the export of bauxite ore since June 2023 on the grounds of increasing domestic added value.

Maman said that the proposed re-implementation of bauxite exports must be accompanied by a condition, namely the determination of a limited export quota.

"Commission VII of the DPR RI encourages the Minister of Energy and Mineral Resources to review and reopen the policy of banning bauxite exports with limited export quotas in order to move the Bauxite-producing regional economy in accordance with applicable laws and regulations," said Maman, quoted on Tuesday, July 9.

Maman said that every policy issued by the government should also pay attention to the local economy which will be affected by the applicable regulations. Moreover, he said, the Ministry of Energy and Mineral Resources has also provided a policy space for relaxing the export of copper commodities to PT Freeport Indonesia (PTFI) and PT Amman Mineral International Tbk.

"So I mean I also have to be moderate, my enthusiasm also does not really want to support the reopening of exports, but what I want to convey to the government is that the relaxation space is also opened proportionally," explained Maman.

The same thing was conveyed by the Daily Executive (Plh) General Chairperson of the Indonesian Besiwan Association (APB3I) Ronald Sulistyanto.

Ronald said that the weakening of the rupiah also affected the production cost component because it had a United States (US) dollar base.

"Because there is an opportunity in a situation like this, of course exports will be the mainstay. If exports can be done, of course we can get foreign exchange," he said in the Mining Zone quoted on Tuesday, July 2.

In addition to receiving state foreign exchange, he said, bauxite entrepreneurs can also reposition things that are sharpened to circumvent the law's order, namely downstream bauxite.

Ronald said the downstreaming of bauxite does take time and with the strengthening of the dollar, the recount of the smelter development will change greatly because it uses a US dollar base.