Indonesia’s decision to ban bauxite exports, effective June 2023, stems from its urgent need to boost domestic aluminum production and reduce reliance on imports. Energy and Mineral Resources Minister Bahlil Lahadalia emphasized that the country’s industrial capacity falls short of meeting domestic demand, with current bauxite smelting capacity at just 17.5 million tons annually. To address this gap, the government is targeting $8 billion in downstream investment, half of which has already been realized. West Kalimantan, home to vast bauxite reserves, is being prioritized for new smelter development to support this industrial push. This export ban aligns with Indonesia’s broader “downstreaming” strategy, which began with the nickel export ban in 2020 and continues under President Prabowo Subianto. The goal is to shift from raw material exports to value-added production, including batteries, electric vehicles, and refined metals. While the policy has attracted significant investment, it has also sparked international disputes, such as a WTO challenge from the European Union over nickel restrictions. Indonesia’s approach is reshaping global supply chains and positioning the country as a key player in the industrial metals market.Source: https://jakartaglobe.id/business/indonesia-justifies-bauxite-export-ban-to-boost-domestic-smelter-industry (ICE GIACARTA)

Fonte notizia: Jakarta Globe, 15 October 2025