Jakarta, Dec 21 (EFE).- The government of Indonesia announced Wednesday a ban from next year on the export of bauxite, used for the production of aluminum, with the aim of promoting domestic processing and attracting foreign investment.
The ban is expected to come into effect from June 2023, which the authorities estimate will drive revenues from the sale of this metal from the current 21 trillion Indonesian Rupiah ($1.35 billion) to 62 trillion Rupiah.
“Starting from June 2023, the Government will impose the export ban on bauxite ore and stimulate domestic bauxite processing and refining industry,” President Joko Widodo said in a press statement at the Merdeka Palace in Jakarta, according to a statement by the Cabinet Secretariat.
Indonesia is the world’s sixth-largest producer of bauxite, with China as its top market, and holds the fifth-largest reserves, according to a report this year from the United States Geological Survey.
Widodo said this measure aimed to replicate the success of development in processing nickel, after its export was banned in January 2020 in Indonesia.
As a result, the value of nickel exports increased from 17 trillion Rupiah in 2014 to 326 trillion Rupiah in 2021, while this year it is expected to reach 468 trillion Rupiah.
“The Government is committed to realizing sovereignty over natural resources and increasing added value in the country, especially with regard to providing as many jobs as possible and increasing foreign exchange as well as (achieving) a more equitable economic growth,” the president said. EFE