Indonesia's Copper Ore Exports Significantly Strengthened in 2022

According to data from the Central Bureau of Statistics (BPS), Indonesia's copper ore export volume reached 2.5 million tons during the January-October 2022 period.

This figure is approximately 13% higher than the export volume throughout 2021, marking the highest record in the last decade.

During the January-October 2022 period, the export value of this commodity also reached US$7.7 billion, 42% higher than the 2021 figure.

Despite its strong performance, President Jokowi plans to halt copper exports starting in mid-2023.

"Indonesia lost the nickel case at the WTO. We're adding a stop to bauxite exports, and maybe in mid-year we'll add a stop to copper," Jokowi said at the 50th anniversary of the PDI-P 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 quotas or licensing restrictions.

Despite losing the case, the Indonesian government plans to appeal the nickel issue 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).