Illegal Nickel Export Case Still under Investigation, Says KPK
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5 July 2023 18:06 WIB
TEMPO.CO, Jakarta - The Corruption Eradication Commission (KPK) revealed that the findings for the alleged illegal nickel export to China are under investigation. The allegation was found while KPK conducted coordination and supervision on corruption prevention or Koorsupgah. “The findings are the results of Koorsupgah, as will the investigation,” said KPK spokesperson, Ali Fikri, in his office on Wednesday, July 5, 2023.
Ali explained that the commission has several functions, from prosecuting cases to corruption prevention and monitoring. He also said that the investigation regarding the nickel export case is under the authority of KPK’s Board for Prevention and Monitoring. According to Ali, KPK investigates several issues and already published two regarding toll road cases and land procurement cases. KPK plans to publish its findings regarding the nickel export case in the immediate future.
Previously, KPK reported that it found alleged illegal export to China from Indonesia in the form of 5.3 million tonnes of raw nickel ore which happened during the 2020-2022 period. The export is considered illegal since Indonesia has already banned raw nickel export.
KPK’s findings are based on the calculation of the number of raw nickels exported from Indonesia to China. The disparity reached trillions of rupiah resulting from the exports.
An economist and Director of the Institute for Demographic and Poverty Studies (IDEAS) Yusuf Wibisono suspected that the illegal practices were already underway long before the ban even happened. “This is to be expected. It is also suspected that this did not start with the 2020 ban, but could be started ever since the 2014 ban on raw nickel export,” Yusuf said to Tempo on Saturday, July 1, 2023.
He explained that illegal raw nickel export is to be expected since the resource-based policy bans raw nickel export. The ban, in his opinion, oversaw a decline in commodity prices, far below the international standard.
Mineral Sales Benchmark (HPM) of the domestic raw nickel showed a sharp decline of 50% in the international market. While the international price of nickel soared in 2021 and reached its peak in 2022, the incentive to export raw nickel strengthened. So, according to Yusuf, it is not surprising to see an indication of illegal export. Thus, Yusuf assessed that the ban on raw nickel export enforced by the domestic raw nickel’s HPM triggered the illegal raw nickel export, especially by Mining Business License holders unaffiliated with the nickel smelters.
M Rosseno Aji / Najla Nur Fauziyah
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