International Raw Material Shock from Indonesia... Coal Followed by Major Minerals Announcing Export Suspension One After Another

▲Joko Widodo, President of Indonesia

[Asia Economy Reporter Kwon Jae-hee] Indonesia, which possesses abundant mineral resources, announced that it will ban the export of bauxite, the raw material for aluminum, following coal. This is expected to cause ripple effects such as price increases in the international raw materials market.

According to local media including The Jakarta Post on the 11th, President Joko Widodo announced at the 49th anniversary event of his party, the Indonesian Democratic Party of Struggle (PDI-P), that the export of bauxite and copper ore will be banned this year and next year, respectively.

President Joko Widodo explained the background of the export ban, stating that Indonesia will transition from a raw material exporting country to an exporter of finished and semi-finished products, thereby creating added value.

President Joko Widodo said, "The downstream development effects of these minerals will be tremendous," and added, "It is expected to provide many jobs for the people and create high added value."

Previously, in 2019, Indonesia completely halted the export of nickel ore.

Indonesia accounts for 25% of the world's nickel ore supply, which caused a significant ripple effect including a sharp rise in global nickel ore prices at that time.

Global battery manufacturers such as LG Energy Solution (formerly LG Chem) also made direct investments by building battery factories in Indonesia to secure nickel, the main raw material for batteries.

President Joko Widodo emphasized, "Since the suspension of nickel ore exports, nickel-related export revenue has increased more than tenfold," and added, "Based on this, the same will be applied to other minerals such as bauxite, copper, tin, and gold."

President Joko Widodo also stated that he is not afraid of being sued by the World Trade Organization (WTO) over these measures.

He further emphasized several times, "Palm oil crude oil will also be banned from export someday, and coal exports will be gradually reduced."

This content was produced with the assistance of AI translation services.