Indonesian Chamber of Commerce and Industry welcomes the decision to ban bauxite export

On December 27, 2022, Arsjad Rasjid, the General Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin), expressed support for the bauxite export ban, claiming that it will increase the value of the country's natural resources.

Rasjid said, "The export ban on bauxite will take effect in June 2023. The policy is in accordance with the mandate of Mineral and Coal Law No. 3 of 2020."

"If we only export raw materials, we are at a disadvantage. It is our right as a nation to have added value. So this measure was pursued as a result of an evaluation by the government of the previous scheme and also to encourage domestic industrialization."

He added, “However, the export prohibition policy would be even better if it were supported by a detailed downstreaming road map instead of just building as many smelters as possible aimlessly.”

The processing and refinery facilities for bauxite ore are currently situated in Central and Southeast Sulawesi, East and South Halmahera, Galang Batang Bintan Island, and West Kalimantan.

Rasjid claims that the government's downstream initiatives are intended to promote a rise in the processing of other domestic natural resources.

"This is not only limited to nickel and bauxite but also includes tin, copper, and especially gold. We must utilize our natural resource wealth to process it as best as possible and generate added value, which will benefit the Indonesian people's welfare," he said.

"It is also expected that bauxite downstream would be similar to nickel—integrated from upstream to downstream—so that it produces high-added value and not just semi-finished goods."

He is confident that downstream will aid in promoting bauxite processing into aluminium ingots by 2025. The national economy would benefit from downstream bauxite, light industry, and modern, environmentally friendly logistics.

"The domestic manufacturing industry, necessary, requires aluminium in industrial processes such as aeroplanes, ships, automotive, and construction," he said.