Indonesia has the world's seventh-largest copper reserves. This commodity is a crucial raw material for various industries, ranging from infrastructure and transportation to heavy equipment, household appliances, electronics, and the automotive sector.
According to data from the Central Bureau of Statistics (BPS), during the January-October 2022 period, Indonesia exported 2.5 million tons of copper ore, with export value reaching approximately US$7.7 billion.
During this period, Indonesian copper ore was primarily shipped to Japan and China, with export volumes exceeding 500,000 tons each.
Shipments were also sent to South Korea, India, Taiwan, Malaysia, Spain, the Philippines, Germany, and Bulgaria, with details as shown in the graph.
Overall, Indonesia's copper ore export volume from January to October 2022 grew by 13%, and its export value surged by 42% compared to the entire year of 2021.
Despite the strengthening export performance, President Jokowi plans to halt copper sales abroad starting in mid-2023.
"Indonesia lost the nickel case at the WTO. We're stopping bauxite exports, and we might stop copper exports by mid-year," Jokowi said at the 50th anniversary of the PDI-P party in Jakarta on Tuesday (10/1/2023).
Previously, the Indonesian government banned nickel ore exports starting January 1, 2020. However, this policy was challenged by the European Union to the World Trade Organization (WTO).
After a lengthy trial, the WTO ruled in favor of the European Union in October 2022. Indonesia lost the case for violating international free trade agreements, specifically Article XI:1 of the General Agreement on Tariffs and Trade (GATT) 1994.
This GATT article states that WTO member countries may only restrict duties, taxes, or other levies, but are prohibited from imposing export and import quota restrictions or licensing requirements.
Following the defeat, the Indonesian government plans to appeal the nickel case to the WTO. President Jokowi even announced that he would close the export tap for other mineral commodities.
"Starting June 2023, the government will ban bauxite ore exports and encourage the processing and refining of bauxite domestically," Jokowi said at the Merdeka Palace, Jakarta, on Wednesday (21/12/2022).