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Indonesia's Bauxite and Nickel Reserves Sufficient for Over 100 Years of Production

Adi Ahdiat 21/12/2022 16:40 WIB

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According to BPS reports, at the end of 2021, Indonesia's bauxite reserves were sufficient for extraction for 258 years, while nickel reserves were sufficient for 108 years.

Age of Indonesian Bauxite, Nickel, Tin, Copper, and Silver Mineral Resources (2021)

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Indonesia's Bauxite and Nickel Reserves Sufficient for Over 100 Years of Production

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Age of Indonesian Bauxite, Nickel, Tin, Copper, and Silver Mineral Resources (2021)

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Indonesia possesses abundant bauxite and nickel mineral resources. According to the Central Bureau of Statistics (BPS), national bauxite reserves are sufficient for extraction for the next 258 years, while nickel reserves can sustain ore production for 108 years.

The BPS calculated these asset lifespan estimations based on the ratio between the physical stock (reserves) of national mineral resources at the end of 2021 and the extraction rate over recent years.

The lifespan of bauxite and nickel assets is significantly longer than that of other mineral resources. For example, tin reserves can only be extracted for 36 more years, copper for 33 years, and silver for 30 years.

Despite its abundant resources, President Jokowi will soon ban bauxite ore exports.

"Starting June 2023, the government will ban bauxite ore exports and encourage domestic processing and refining," Jokowi said at the Merdeka Palace, Jakarta, as reported by Antara on Wednesday, December 21, 2022.

According to Jokowi, this export ban aims to achieve natural resource sovereignty, create jobs, increase foreign exchange earnings, and promote equitable economic growth.

"Exports of raw materials will continue to be reduced, and the downstreaming of industries based on natural resources within the country will continue to be increased," Jokowi said.

Previously, the government also banned nickel ore exports since January 1, 2020. However, this policy was challenged by the European Union at the World Trade Organization (WTO).

After a lengthy trial, the WTO upheld the European Union's complaint 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 quota restrictions or export and import licensing.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Bauxite and Nickel Reserves Sufficient for Over 100 Years of Production

Indonesia's Bauxite and Nickel Reserves Sufficient for Over 100 Years of Production

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Indonesia's Bauxite and Nickel Reserves Sufficient for Over 100 Years of Production

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