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JAKARTA - The Indonesian government is increasingly determined in establishing industrial downstreaming in Indonesia. After banning nickel exports, President Joko Widodo plans to ban bauxite exports.

"As a country with the largest nickel reserves in the world, we expect Indonesia to be the first producer of nickel-based goods. We have wanted to stop (export) nickel there and will continue to stop exporting bauxite raw materials," he said. Jokowi in his remarks at the implementation of the second phase of the integrated electric battery industry, in Batang, Central Java, Wednesday, June 8.

Previously, the 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 have translated 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 tin exports," he said.

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.


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