Indonesia Mineral Export Ban Continues: Five Key Takeaways
Summary
- Chinese companies have taken anticipatory steps toward Indonesia's bauxite policy. China's smelters were among the first to be completed. The export ban on bauxite ore will be a game changer for Indonesia's alumina trade balance.
- The government will allow copper, zinc, lead, and iron ores exports until next year but plans to impose fines for delays in smelters' construction as a push to companies.
- Indonesia is also targeting an export ban on tin bars or ingots, considering that 98 percent of its tin exports are in the form of ingots. This will be Indonesia's most impactful mineral export ban after the nickel ore export ban imposed in 2020, as Indonesia holds nearly 18 percent of world tin reserves.