As Indonesia stands by bauxite ore ban, can it replicate nickel success?

The ban is part of a ‘downstreaming policy’ to boost revenue from raw materials by requiring miners and producers to build onshore refining facilities

China, Indonesia’s primary importer of bauxite, could file a complaint about the ban at the WTO, but analysts say such a move would be drastic

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Indonesia is doubling down on its decision to ban exports of bauxite ore but it might struggle to replicate the success it has had with nickel ore. Photo: Reuters

Published: 12:00pm, 26 Jun 2023Updated: 2:16pm, 26 Jun 2023

Indonesia is doubling down on its decision to ban exports of bauxite ore as part of a strategy to expand its domestic industry, but it might struggle to replicate the success it has had with the more lucrative nickel.

President Joko Widodo recognised in a speech earlier this month that China, Indonesia’s primary importer of bauxite, could file a complaint at the World Trade Organization after Indonesia had enacted its export ban.

But he remained steadfast in Jakarta’s plan to move ahead with the ban, which came into effect this month.

“If anyone sues us, we’ll face it. Please, let’s not act like a small country. Indonesia is a big country. A big country shouldn’t be gutless when getting sued, don’t be ridiculous,” Widodo said, according to CNBC Indonesia.

Aside from bauxite ore, Indonesia’s President Joko Widodo wants to also curb exports of copper, tin and gold. Photo: Xinhua

In 2022, Indonesia produced some 21 million tonnes of bauxite, according to data from the US Geological Survey, making it the world’s fifth-largest producer. Almost 85 per cent was exported overseas.

The ban comes as Indonesia pursues a “downstreaming policy” to generate more revenue from raw materials by requiring miners and producers to build refining facilities onshore.

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