Home ECONOMY President Jokowi Announces Bauxite Ore Exports to be Banned from June 2023

President Jokowi Announces Bauxite Ore Exports to be Banned from June 2023

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President Jokowi Announces Bauxite Ore Exports to be Banned from June 2023

Jakarta, Timerilis.com – The government has officially banned bauxite ore export in its raw form. This policy was taken to encourage the domestic bauxite processing and refining industry.

President Joko Widodo said the policy would come into effect in June 2023.

“Starting in June 2023, the government will impose a ban on the export of bauxite ore and encourage the domestic bauxite processing and refining industry,” said President Jokowi in his statement at the Merdeka Palace in Jakarta, Wednesday, December 21, 2022.

The President added that the policy was taken by the government in the context of realizing natural resource sovereignty and increasing added value in the country, especially in the context of opening as many jobs as possible and increasing foreign exchange and more fair economic growth.

Through the industrialization of bauxite in the country, the President predicts that state revenues will also increase.

“From the industrialization of bauxite in this country, we estimate that state revenue will increase from IDR 21 trillion to around IDR 62 trillion,” he explained.

Previously, the government had also imposed a ban on nickel ore exports on January 1, 2020. Through this policy, Indonesia managed to increase the value of nickel exports by up to 19 times. From only IDR 17 trillion or USD 1.1 billion at the end of 2014, increase to IDR 326 trillion or USD 20.9 billion in 2021.

“My estimation is that this year will penetrate more than IDR 468 trillion or more than 30 billion USD,” he said.

President Jokowi also emphasized the Indonesian government’s commitment to continue improving the domestic natural resource processing industry. Start by reducing raw materials exports and increasing downstream natural resource-based industries in the country.

“The government will continue to consistently carry out domestic downstream. So that added value is enjoyed domestically for the progress and welfare of the people,” he said. (Eva)