No More Raw Materials

One by one, raw materials are no longer sold by Indonesia, unless it is in the form of processed or industrial products. Value added is obtained.

KOMPAS/ELSA EMIRIA LEBA

Nickel-based processing and refining factory or smelter owned by PT Virtue Dragon Nickel Industry in Konawe, Southeast Sulawesi, Monday (25/2/2019)

Raw bauxite export will be stopped in June 2023. The government's decision to prohibit exports of all raw bauxite ore, including washed ore, is followed by efforts to encourage the bauxite purification and processing industry in the country. All bauxite ore must be processed in Indonesia, which will produce higher selling value products, including alumina and aluminum.

This bauxite downstreaming follows a similar step that was applied to nickel. Indonesia is appealing the World Trade Organization (WTO) ruling on the nickel export ban dispute against the European Union. Indonesia has banned nickel ore exports since 2020. Nickel ore is processed to meet domestic industrial needs.