Indonesia's Bauxite Exports Soar Nearly Tenfold in Five Years

The Indonesian government plans to halt the export of raw mining commodities, including bauxite.

"I have said this repeatedly. Don't be surprised if I stop bauxite exports, don't be surprised if I stop copper exports, don't be surprised if I stop tin exports, don't be surprised if I stop exporting what we usually export as raw materials," said President Jokowi when addressing the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta, as reported by Indonesia.go.id on Tuesday (23/8/2022).

President Jokowi explained that since Indonesia stopped exporting raw nickel in early 2020, nickel export value has grown rapidly because the commodity sold is now in processed form. A similar outcome is expected for bauxite.

According to the Ministry of Industry, bauxite is a raw material for various industries, ranging from cable, pipe, household appliance, construction, furniture, sports equipment, automotive, and aviation industries. Bauxite can also be processed and used for water purification, cosmetics, pharmaceuticals, and ceramics.

"This (bauxite) industry drives other industries, absorbs labor, provides income for employees and the surrounding community, drives regional economies, and generates foreign exchange earnings," explained the Ministry of Industry on its official website.

Bank Indonesia also notes that the value of national bauxite exports has grown rapidly in recent years. In 2017, the value of Indonesian bauxite exports was only around US$66.43 million. In subsequent years, the export value continued to increase, reaching US$628.17 million in 2021.

Within 5 years, the value of bauxite exports has soared by almost tenfold. This shows that Indonesian bauxite is increasingly in demand in the international market, making it highly potential for value addition development.