Jokowi Plans to Stop Raw Bauxite, Copper Exports

TEMPO.CO, Jakarta - President Joko 'Jokowi' Widodo plans to stop the export of raw commodities. After nickel ore, the export of raw bauxite, copper, tin, and other commodities will be stopped gradually.

"We are now calculating [the possibility] to stop exporting raw bauxite, perhaps starting next year. The next year after that would be raw copper, and the year after that, tin. We will continue to do this," the president said in a national coordination meeting and the awards ceremony for investment services, held by the Ministry of Investment in Jakarta, Wednesday, November 24.

The government, Jokowi said, will encourage the downstream industry to process raw materials into semi-finished and/or finished goods. In the future, he said, Indonesia will stop relying on the export of raw commodities, but rather processed goods, which is expected to provide added value economically.

Jokowi mentioned nickel exports, which, four years ago—before the government ceased its ore exports—was only worth US1.1 billion. After the ban, the value of refined rose nickel exports, estimated at US$20 billion this year.

"That's a jump from Rp15 trillion to Rp280 trillion. That's what we call added value," the president said.

In the future, he went on, the government will continue to encourage the integration of industrial areas for processing raw materials; from nickel, bauxite, tin and copper. This will allow Indonesia to become a major producer of various products, such as electric cars, syringes, to semi-conductor goods.

"This will happen in three to four years. If we have such an industry, there will be a transfer of knowledge, transfer of technology," said Jokowi.

Read: Jokowi Calls for Geopark Preservation, Against Overexploitation

Francisca Christy Rosana