Government Officially Bans Export of Bauxite Ore Starting June 2023

Jakarta, InfoPublik - The government has decided to ban the export of bauxite ore which will take effect in June 2023. This policy encourages the better domestic bauxite processing industry.

"I repeat, starting in June 2023, the government will impose a ban on bauxite ore exports and encourage the domestic bauxite processing and refining industry," said President Joko Widodo in a press release on Wednesday, December 21.

From the domestic bauxite industry, said the Head of State, it is estimated that state revenue will increase from IDR 21 trillion to around IDR 62 trillion.

The President emphasized that the government continues to strive to improve the natural resource processing industry in the country. The government will also continue to reduce exports of raw materials while at the same time increasing the downstream of natural resource-based industries in the country.

"The government continues to be committed to 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 earnings and more equitable economic growth," he said.

Previously, since January 1, 2020, the government imposed a policy to ban nickel ore exports. This policy, said the President, succeeded in significantly increasing the value of nickel exports from IDR 17 trillion at the end of 2014 to IDR 326 trillion in 2021, or an increase of 19 times.

"I estimate that this year, it will penetrate more than IDR 468 trillion or more than USD 30 billion. That's just one commodity. The government will continue to carry out domestic downstream consistently. So, added value is enjoyed domestically for the progress and welfare of the people," he concluded

Photo: BPMI Setpres

Author: Tri Antoro

Editor: Untung S

Translator: Wilda Stiana