Press Statement of President of the Republic Indonesia at the Merdeka Palace, Jakarta, December 21, 2022

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullahi wabarakatuh,
Good afternoon,
Peace be upon us all.

My fellow countrymen, ladies and gentlemen,
The Government is committed to continue realizing sovereignty over natural resources and increasing added value in the country, especially with regard to providing as many jobs as possible and increasing foreign exchange as well as [achieving] a more equitable economic growth.

Therefore, the Government continues to strive to improve natural resources processing industry in the country. Exports of raw materials will also be continuously reduced while at the same time the downstream of natural resource-based industries will be improved.

On January 1, 2020, we started to implement a policy to ban nickel ore exports. The result shows that the value of nickel exports has increased from Rp17 trillion or US$1.1 billion at the end of 2014 to Rp326 trillion or US$20.9 billion in 2021, meaning an increase of 19 times. I estimate that this year the number will reach more than Rp468 trillion or more than US$30 billion. This is just one commodity.

For that reason, we will extend the success to other commodities. And, starting from June 2023, the Government will impose the export ban on bauxite ore and encourage domestic bauxite processing and refining industry. I repeat, starting from June 2023, the Government will impose the export ban on bauxite ore and encourage the bauxite processing and refining industry in the country.

The industrialization of bauxite in the country is expected to boost the state revenue from Rp21 trillion to around Rp62 trillion. The Government will continue to consistently carry out domestic downstreaming so that we can enjoy the added value, for the progress and welfare of the people.

This concludes my statement.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh. (FI/MMB)