One of three potential candidates to become Indonesia's vice president has slammed Joko Widodo's policy of forcing foreign companies to invest in mineral processing through an export ban, stepping up criticism of the outgoing head of state's economic record.
Muhaimin Iskandar, the running mate of presidential candidate Anies Baswedan, said the government's so-called "downstream" policies had caused serious environmental damage without much benefit to the local people. Iskandar said while these measures helped create much-needed jobs in remote islands, especially Sulawesi, foreign workers dominated the new posts.
"We see that our mining business is going downhill with impunity," Iskandar said during a debate with other vice presidential candidates on Sunday. "Downstream development has not significantly affected people's welfare."
The comments are the fiercest criticism yet of Mr Jokowi's flagship industrial policy. Until recently, all three leading presidential candidates said they would support Jokowi's industrial policies. The outgoing head of state banned exports of nickel ore raw materials in 2020, attracting billions of dollars of investment to process them into more valuable products, led by Chinese companies including Qingshan Holdings Group.
The move has fueled a boom in nickel mining and processing that has upended global markets, sent metal prices tumbling and forced miners in other countries to cut production. The industry's explosive growth has also led to massive deforestation, while smelters, which mostly run on coal, have led to massive carbon emissions. Nickel is needed to make high-performance electric vehicle batteries.
Iskandar also criticised deadly accidents at industrial facilities operated by foreign companies, the latest of which left 21 people dead. He also attacked the proliferation of illegal nickel mines, which are particularly damaging to the environment.
"What kind of downstream do we want to continue with illegal mining still widespread?" he said.
Meanwhile, Mohammad Mahfud Mahmodin, the running mate of presidential candidate Ganjar Pranowo, noted that regulators have been slow to crack down on illegal mining. Vice presidential candidate Gibran Rakabuming Raka said those who violated the rules should have their mining licenses revoked. Raka is the son of Prabowo Subianto, the election leader.
Indonesia holds a general election next month. The next leader will succeed Jokowi, who has been in power for nearly a decade. While the president has not officially endorsed any candidate, Subianto is widely seen as his favorite after the former general chose his son as his running mate.
