Jakarta -- Indonesian President Joko Widodo. Widodo's proposal to halt exports of raw ore from the resource-rich country next month will attract investment and lead to more jobs and economic development.
After banning nickel exports in 2020, he won a big gamble. Indonesia accounts for nearly half of the world's nickel production, and the policy change has succeeded in attracting Chinese and other investors eager to invest critical capital in electric car batteries and stainless steel.
But the success of the nickel ban depends on Indonesia's clout in global markets, an advantage analysts say it lacks when it comes to bauxite, tin and copper, which it plans to stop exporting from next month.
Indonesia's export ban is aimed at attracting investment in downstream industries, creating jobs and spurring increased shipments of more valuable products. Jakarta is considering an eventual export ban on about 20 commodities, including coal, gold, silver, crude oil, natural gas and palm oil, aiming for about $545 billion in downstream investment by 2040.
Indonesia is not alone among resource-rich countries seeking higher returns on their natural assets. But it was "certainly one of the pioneers in implementing the mineral export ban," Mr. Chowdhury said. "Its nickel success story is a sign of the success of moving up the value chain through decisive policies."
