Indonesia, the World's Sixth Largest Bauxite Reserve Holder in 2022

The United States Geological Survey (USGS) estimates that global bauxite reserves reached 31 billion dry metric tons in 2022.

The reserves figure in the USGS report represents the volume of resources that can be economically extracted and produced.

In 2022, Guinea held the world's largest bauxite reserves, estimated at 7.4 billion dry metric tons. This West African nation holds the largest reserves.

Indonesia holds the sixth-largest global bauxite reserves, with the volume detailed in the graph.

Bauxite is the raw material for making aluminum, a lightweight metal that can be compacted to be as hard as steel, is corrosion-resistant, and is a good electrical conductor.

Aluminum then becomes a crucial raw material for various industries, ranging from automotive and household appliances to solar panel technology.

Starting June 2023, Indonesia will ban bauxite exports. According to the Acting Director General of Minerals and Coal (Minerba) at the Ministry of Energy and Mineral Resources (ESDM), Muhammad Wafid, the plan will be implemented starting tomorrow.

"Yes (the plan to ban bauxite ore exports) is still on. If that policy must be implemented on the 10th (June 2023)," said Muhammad Wafid to Detik.com, Thursday (8/6/2023).

The government is banning the export of this commodity to encourage the development of the domestic bauxite processing industry. However, according to ESDM Minister Arifin Tasrif, the construction of bauxite processing facilities or smelters in Indonesia is not yet optimal.

Arifin stated that there are currently only four bauxite smelters in Indonesia with a total absorption capacity of 13.9 million tons.

These four smelters are managed by PT Indonesia Chemical Alumina, PT Bintan Alumina Indonesia, PT Well Harvest Winning Alumina Refinery Line-1, and PT Well Harvest Winning Alumina Refinery Line-2.

In addition, there are seven smelters still under construction. However, the completion date of these new smelters is uncertain.

"Although verification reports show construction progress (of bauxite smelters) between 30% and 66%, based on field reviews there is a very significant difference; they are still just empty land," said Arifin, as reported by Katadata.co.id (24/5/2023).