Coordinating Minister: Domestic Facilities Ready to Process Bauxite Ore

Photo Caption: President Jokowi and Coordinating Minister for Economic Affairs Airlangga Hartarto at Merdeka Palace, Jakarta, Wednesday (12/21). (Photo by: BPMI Presidential Secretariat)

In a bid to provide added value to bauxite commodity, the Government decided to stop the export of bauxite ore starting June next year.

Coordinating Minister for Economic Affairs Airlangga Hartarto explained Wednesday (12/21) that there are already four bauxite refining facilities with a total output capacity of 4.3 million tons.

In addition, the in-development bauxite refining facilities are expected to have input capacity of 27.41 million tons and a production capacity of 4.98 million tons.

“We have 3.2 billion tons of bauxite reserves, which could meet the demand for 41.5 million tons capacity. Of the eight smelters we prepare, we are capable to accommodate other 12 smelters, and our bauxite reserves are enough for the next 90–100 years,” Airlangga stated.

The Minister expected that the export ban will encourage the processing and refining industry in the country.

According to Airlangga, bauxite ore will be processed into alumina, and to be processed into aluminum or aluminum ingots. The said aluminum then be processed into bars or sheets product. “We are currently importing US$2 billion worth of aluminum. With the domestic aluminum processing, we can save US$2 billion,” he added.

For the record, President Joko “Jokowi” Widodo announced the Government’s policy to ban bauxite export starting June next year to achieve sovereignty over natural resources and increase added value in the country, especially to open a wide range of employment, increase foreign exchange earnings, and realize more equitable economic growth.

“The Government continues to strive to improve the natural resources processing industry in the country. Exports of raw materials will continue to be reduced, downstream natural resources-based industries in the country will continue to be increased,” President Jokowi remarked. (JW/UN) (GWH/HD/LW)