JAKARTA (Reuters): Indonesia will ban exports of bauxite, the main ore source of aluminium, starting from June next year to encourage domestic processing of the material, President Joko Widodo announced on Wednesday (Dec 21).
Indonesia is among the world's biggest suppliers of bauxite with China a key buyer.
The timing of the bauxite export ban is in line with Indonesia's current mining law.
Jokowi, as the president is widely known, had earlier on Wednesday told an economic forum that Indonesia would be announcing a ban on exports of a commodity, without disclosing which, or a timeframe for implementation.
Indonesia's current mining law also states exports of other unprocessed minerals such as copper will also be stopped. Jokowi did not specify the timing of bans on shipments of the other materials.
Earlier this year Indonesia briefly banned shipments of coal and palm oil, creating turmoil and weeks of uncertainty in those markets.
On Wednesday, he said the government wanted to replicate the success of nickel processing development after exports of its raw form was banned in 2020.
Once the world's biggest exporter of nickel ore, Indonesia stopped exports in January 2020, a move that had enticed foreign investors, mostly from China, to build smelters in the resource-rich Southeast Asian country.
China imported 17.8 million tonnes of bauxite from Indonesia in 2021, and 17.98 million tonnes in the first 11 months this year, about 15.6% of its total imports, according to customs data.
The World Trade Organization last month ruled in favour of the European Union in a dispute on nickel ore exports, which Indonesia is appealing.
Jokowi on Wednesday said he is certain Indonesia's next export ban would face lawsuit, but said it will not deter him.
The president has previously said he wanted to expand the export ban to cover tin, bauxite, gold, copper and palm oil.
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