Jokowi: If We Only Export Raw Materials, Up To Heroes Only Become Developing Countries

PDI-P 50th Anniversary commemoration at JIExpo Kemayoran, Jakarta, Tuesday, January 10.

JAKARTA - President Joko Widodo emphasized that Indonesia will continue to strive to reduce exports of raw materials. According to him, there is no progress if we continue to sell raw materials abroad.

This was conveyed by Jokowi at the PDI-P 50th Anniversary commemoration event at JIExpo Kemayoran, Jakarta, Tuesday, January 10.

"If we export it, we send only raw materials, until the end we will only become a developing country," said Jokowi.

Jokowi reviewed that Indonesia had started to stop nickel ore exports since January 1, 2020. This condition clearly benefits Indonesia. Previously, nickel exports only generated revenues of IDR 17 trillion per year. After the industrialization and downstreaming of nickel, now the export value can reach IDR 360 trillion per year.

Then, Jokowi plans to stop bauxite exports starting in mid-2023 for industrialization and downstreaming in Indonesia. He estimates that the added value could reach 3 times.

"Starting June 2023 (bauxite) we will industrialize us to downstream domestically. I don't know the jump, but our estimate from approximately Rp. 20 trillion to approximately Rp. 60 trillion to Rp. 70 trillion," said Jokowi.

However, the suspension of exports of raw materials did not go smoothly. Indonesia was sued by the European Union to the World Trade Organization (WTO) for stopping nickel ore exports. Indonesia lost the lawsuit. Recently, the Indonesian government decided to file an appeal.

Jokowi explained that the consistency of the suspension of exports of raw materials and legal steps that will continue to be taken by the government is a way to prevent Indonesia from being dictated and depend on other countries.

"Even though we are also scared of nickel problems, losing at the WTO, we will continue. Instead, we will stop the bauxite. Maybe in the middle of the year we will stop the copper again," explained Jokowi.

"We must be brave like that. We must not back down. We must not be afraid because natural wealth is in Indonesia. This is our sovereignty and we want to be enjoyed by our society," he said.