Muhammad Suaib Sulaima, director general of exports of Industrial and mineral products at the Ministry of Trade, said the Indonesian government is providing added value to exports through the downstream tightening economic transformation programme. Prohibit the export of raw materials and encourage the export of their derivatives.
Muhammad Suib Sulaima said Indonesia is very rich in natural resources (SDA). Indonesia's natural resources must therefore be properly and sustainably maintained for the benefit of the country's next generation.
"Indonesia's natural resource raw materials have to be processed into value-added and more competitive products compared to when we only export raw materials," Muhammad Suaib said at the first Indonesia Mining Mining Conference - Expo 22 National Symposium themed: Key Minerals and Strategies to support National Industries in Bandung last Wednesday.
Muhammad Suaib admitted that the Indonesian government was declared a loser by the European Union in its nickel mining ban case at the last World Trade Organisation (WTO) panel meeting. However, according to him, Indonesia should not be discouraged. The fight must continue.
"We shouldn't just think about two years or 10 years, but we have to think about nickel processing for our children and grandchildren," he said.
He says there are challenges in maximizing mineral exports. At the very least, it must pay attention to aspects such as the availability of natural resources, environmental impact and prioritising domestic demand before exports.
"As long as domestic demand is not being met, we have to consider whether to export," he said.
He proposes an alternative export-oriented mineral solution. First, we will encourage export-oriented industries and expand the export of existing value-added products. Second, encourage the availability and convenience of raw materials for domestic industry, including local and imported raw or auxiliary materials.
Muhammad Suaib said that although the government has a policy against the export of nickel raw materials, all parties need to understand that import activities are not taboo. It should be noted that raw materials or auxiliary materials are imported to meet the needs of domestic industry.
"That is, if the support material is not produced domestically," he explained.
When the government banned the export of nickel raw materials on January 1, 2020, exports were of nickel derivatives. Nickel derivatives are part of the downstream. The government then invited investors to build a nickel smelter in Indonesia.
Muhammad Suaib said that based on data from January 2022 to September 2022, exports of nickel products and its derivatives from the export destination countries to China dominated, amounting to US $12.59 billion or 4.44 million tonnes. Then Japan $880 million or 600,000 MT., South Korea $220 million or 60,000 MT., India $160 million or 60,000 MT., Taiwan $110 million or 40,000 MT., and other countries $140 million or 200,000 MT.
Meanwhile, importers in the same period were Japan US $20 million or 1010,000 tons, New Caledonia US $10 million or 1010,000 tons, Germany US $10 million or 1010,000 tons, China US $100 million or 107,000 tons, Canada US $40 million or 0.002,000 tons, and Canada US $100 million or 102,000 tons. Other countries $0.3 million or 0.02 million tons
