Jokowi Never Backs Down If Sued For Stopping CPO Exports: It's Our Right To Build A Factory Here

President of the Republic of Indonesia, Joko Widodo. (Photo: Doc. Setkab)

JAKARTA - Indonesian President Joko Widodo plans to stop the export of crude palm oil (CPO) so that the commodity can be processed into value-added derivative products.

"At some point in the future, stop the export of CPO. It has to be cosmetic, it has to be butter, it has to be biodiesel, and other derivatives," said President Jokowi in his briefing to the participants of the PPRA LXII and PPSA XXIII 2021 National Resilience Institute Programs at the State Palace, Jakarta, quoted from Antara, Wednesday, October 13.

President Jokowi said Indonesia must have the courage to stop exports of raw materials, despite the potential for lawsuits to the International Trade Organization (WTO). Indonesia must be prepared to face all obstacles in the downstream process of natural resources.

Even the President asked his staff to prepare international lawyers if Indonesia was sued for stopping the export of raw materials.

"So prepare lawyers who are international class. This is what we are preparing in the process. We will integrate everything that we aspire to," said President Jokowi.

In addition to CPO, President Jokowi also plans to stop the export of raw bauxite. He asked that domestically produced bauxite should be processed into alumina and aluminum metal. Bauxite is a commodity that is prohibited by the government from being exported, after nickel.

Indonesia has banned the export of nickel ore starting in January 2020. This policy is in line with the issuance of the Minister of Energy and Mineral Resources Regulation Number 11 of 2019 concerning the Second Amendment to the Minister of Energy and Mineral Resources Number 25 of 2018 concerning Mineral and Coal Mining.

President Jokowi said that he would not back down to stop the export of raw materials and pursue domestic downstreaming.

"Our goods, we want to make factories here, it's our right. Yes, we will face it. Don't be sued, we will withdraw, this opportunity will not come again, the opportunity will come again. This is our opportunity to integrate our domestic industries," said President Jokowi.

Reflecting on the past few years, Indonesia had missed the opportunity to reap the benefits of added economic value, when the world experienced an increase in prices and demand (boom) for oil and wood.

"In the past there was an oil boom, we lost the timber boom. (This time) we didn't. Minerba must be a foundation in order to advance our country, Indonesia," said President Jokowi.