Starting Today, The Government Bans Bauxite Exports

JAKARTA - The government through the Minister of Energy and Mineral Resources (ESDM) officially prohibits the export of bauxite as of today, Saturday, June 10, 2023.

Minister of Energy and Mineral Resources Arifin Tasrif explained that the government had prepared a legal umbrella.

"(Bauksit) is indeed prohibited," said Arifin, quoted on Friday, June 9.

This is in line with President Joko Widodo's order to stop raw mineral exports in 2022. However, Arifin ensured that the government would still provide export relaxation for copper concentrate.

He further said that he was ready if the decision to stop the export of bauxite would be sued by the World Trade Organization (WTO) as previously happened in nickel.

"If we are sued later, we will sue again," said Arifin.

However, he hopes that no lawsuit will be filed for Indonesia regarding this decision.

"Hopefully it doesn't exist. You understand that the buyer country when we are told to sell raw rock goods like that," said Arifin.

Previously in a Working Meeting with Commission VII of the DPR RI on May 24, Arifin said that the provision of export permits for bauxite could not be carried out because the progress of the construction of the smelter was slow.

Arifin revealed that from the plan to build 12 bauxite smelters in Indonesia, only four of them have been in operation. While the eight smelters are still in the construction stage.

"However, based on field reviews, there are very significant differences with independent verifier results," Arifin said in an RDP with Commission VII on Wednesday, May 24, 2023.

The four smelters that have been operating are PT Indonesia Chemical Alumina, PT Bintan Alumina Indonesia, PT Well Harvest Winning Alumina Refinery. and PT Well Harvest Winning Alumina Refinery (Ekspansi).

Meanwhile, of the 8 smelters that must be built, seven of them are still in the form of vacant land. This is not in accordance with the verification which states that several smelters have progress above 50 percent.