There have been enough exports of industrial commodities such as nickel, copper or tin. Indonesia wants to refocus on processing important inputs at home and exporting higher added value abroad.
Restricting the export of raw materials is to go hand in hand with attracting foreign investment, which will create new jobs in the manufacturing industry in Indonesia. A country with a population of more than a quarter of a billion thus wants to prevent the leakage of added value from the country, which occurs due to the export of various commodities, without undergoing greater processing at home.
A new industrial policy strategy focusing on attracting foreign capital should be presented next year at the latest. “Don’t be surprised. We have had a ban on nickel exports before. We can stop exporting bauxite next year, and other bans may follow, “said Indonesian President Joko Widodo in an interview with local media, according to Reuters.
A ban on the export of crude palm oil, of which Indonesia is the world’s largest exporter, is also possible. In 2020, it exported around 34 million tonnes, of which more than a fifth was in unprocessed form.