Indonesia's ore exports ban stays under Widodo
Curbs spur up to US$18 billion in investmentas Chinese firms plan 60 processing facilities
Indonesia's ban on ore exports will remain in place under the next government as the curbs spur as much as US$18 billion in investment in processing plants by 2017, according to the Energy and Mineral Resources Ministry.
Mostly Chinese investors are planning at least 64 facilities to process nickel, bauxite and other metals, said R Sukhyar, director general of mineral and coal. Investments reached US$4.9 billion so far this year, said Sukhyar, who keeps his post in the new administration.
Nickel is the second-biggest gainer among commodities this year after the largest mined producer barred ore exports to compel investments in local processing. The maintenance of the ban after presidential elections last month is pivotal to predictions for further price increases.
Joko Widodo, the Jakarta governor elected to succeed Susilo Bambang Yudhoyono, and Prabowo Subianto, who challenged the result, say they will keep the ban, said Sukhyar.
Investors have made it clear … that they don’t want any change in policy
"It's important to maintain the policy," Sukhyar said. "Investors have made it clear to the government that they don't want any change in policy because it could damage all their investments and they would lose trust."