Indonesia plans to accelerate ban on bauxite exports
The Indonesian Government will ban bauxite exports starting this year to spur the domestic downstream sector, the country’s President Joko Widodo has said.
Jakarta (VNA) – TheIndonesian Government will ban bauxite exportsstarting this year to spur the domestic downstream sector, the country’s PresidentJoko Widodo has said.
The banwas initially slated to start in mid-2023 as detailed in Regulation No.17/2020 of the Energy and Mineral Resources Ministry.
The Government will also ban the export of "rawcopper" starting in 2023, which is in line with the energy ministryregulation, President Widodo told an event marking the founding anniversaryof the Indonesian Democratic Party of Struggle (PDI-P) on January 10.
In early 2020, Indonesiabanned nickel ore exports, a move that shook the global market as thisSoutheast Asian country is the world’s largest nickel producer.
In response, the EU filed alawsuit against Indonesia to the World Trade Organisation (WTO) over this ban, accusedof violating international trade rules and causing losses to stainlesssteelmakers in the EU.
Also on January 10, the IndonesianGovernment said it will loosen the ban on coal exports, which was instituted atthe start of this month and expected to last for one month.
Explaining thedecision, Coordinating Minister of Maritime and Investment Affairs LuhutPandjaitan said the domesticstockpiles have increased.
The world’sbiggest coal exporter imposed a ban on coal exports on January 1 with a view toensuring domestic supply after the state-owned power utility PLNhad announced that the fuel stockpiles at power plants in Indonesia werecritically low.
Later, thePhilippines called on Indonesia to lift the prohibition, saying that thispolicy may harm the economies dependent on coal to produce electricity./.
Indonesian Minister of Investment Bahlil Lahadalia has revealed that there is a possibility that the coal export faucet could be opened next week if the stock and reserves meet PT PLN power plant’s needs and domestic demands.
Philippine Secretary of Energy Alfonso Cusi has appealed to Indonesia to lift its coal export ban, saying the policy will be detrimental to economies heavily reliant on the fuel for power generation, Reuters reported.
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The Ministry of Commerce reported that imports also rose 18% to 29.9 billion USD during the same period, resulting in a trade surplus of 1.1 billion USD. In May alone, Thailand posted a 4.6 billion USD trade surplus with the US and a 4.1 billion USD trade deficit with China.
The World Bank will provide a 2.1 billion USD financing package for Indonesia, focusing oncreating jobs, stimulating economic growth, and enhancing access to clean energy across the country.
Indonesian President Joko Widodo (Photo: Reuters) 
