Jakarta, IO – The government decided to stop copper exports in July 2023. This policy follows the ban of bauxite export as part of the industrial downstreaming drive.
The decision was confirmed by Investment Minister Bahlil Lahadalia on Tuesday (31/1). “First, we will stop the export of bauxite and the president has announced that. We are looking for investments that can add value to bauxite. Second, we will also stop the export of copper soon,” he said.
Meanwhile, this export ban policy has not been supported by the capability of new domestic copper smelters. PT. Freeport Indonesia and PT. Amman Mineral Nusa Tenggara are currently building smelters, expected to be completed in 2024.
Bahlil explained that the government is trying to find a solution so that the mining companies can continue to carry out their operations. “We are still looking for the formulation regarding unfinished smelters,” said Bahlil.
Read: PAN-RB Minister: Poverty reduction fund wasted for meeting and comparative study
Since the export ban was announced, there has been opposition from industry players and observers. Center of Economic and Law Studies (Celios) executive director Bhima Yudhistira viewed that of the smelters are not yet ready the export ban will reduce copper production and the country may lose export earnings which in turn will negatively affect the trade balance, reported CNBC Indonesia, Friday (13/1).
He advised the completion of the smelters to be expedited so downstreaming can be carried out effectively. In fact, copper export ban is part of the mandate of Law 3/2020 on mining, which requires companies to develop industrial downstreaming three years after its issuance. The law aims to add value to ore or mineral extraction. (bp)