In the last days of 2022, the President of Indonesia finally announced that from July 2023, the largest country in Southeast Asia would prohibit exporting bauxite as it intensifies its protectionist policy to foster sophisticated domestic manufacturing.

On January 18, 2023, Bahlil Lahadalia, the Investment Minister of Indonesia, confirmed the bauxite ban decision in remarks at the World Economic Forum in Davos.

The decision would be an advantage for Australian bauxite producers because China, the major consumer of Indonesian bauxite, will have to find new markets for its product. Indonesia has been the third-largest exporter of bauxite to China in recent years, after Guinea and Australia.

Mr Lahadalia said, "The Indonesian government took this action to encourage the domestic aluminium industry. Even if this case is brought before the World Trade Organization, we will be okay because we have learned from other developing countries.

Unprocessed nickel exports are already prohibited, and despite an adverse WTO decision, Indonesian President Joko Widodo has warned that additional limitations are expected.

A few days back, the Indonesian President said, “Indonesia is facing a lawsuit at the World Trade Organisation over banning nickel exports. And we lost. But our fight continues as we submit a plea. Even though we may seem intimidated by losing the nickel issue at the WTO, we will persist.”

The bottom line is that we want to sell something other than raw materials. We want to market a partially finished product.