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Export ban of Indonesia bauxite ore: Poison or positive supplement for Indonesia – China relation

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Based on precedence, China took different approach towards export ban of Indonesia nickel ore in 2020. China has been one of the dominant investors in mining and smelting Indonesian critical mineral ores. Data from the Ministry of Industry as of 1 February 2023 showed that there were 91 smelters in Indonesia of which 48 smelters are already operating while the rest are still in the visibility study or construction stage. As per today, there are three bauxite smelters operating in Indonesia and eight bauxite smelters are still in the reconstruction progress.

This paper believes two main factors have pushed China to invest into Indonesia’s mineral sector. First, Indonesia’s 2014 ban on the export of raw minerals. Secondly, was the Belt and Road Initiative (BRI), which encourages those Chinese companies to invest in developing countries. Ministry of Foreign Affairs (MoFA) should focus on how Chinese Government follow up reaction towards Indonesian policy to ban Indonesian bauxite ore export will play out. MoFA also should pay more attention on how the domestic perception towards the large-scale Chinese investment in Indonesia, and MoFA also could promote the possible leverages to offer for the foreign investors in Indonesia, such as tax incentive and OSS-RBA.

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Ketersediaan

2023-0094

Sekdilu 43-2023

Training Materials Repository

Tersedia

Informasi Detail

Judul Seri

-

No. Panggil

Sekdilu 43-2023

Penerbit

Jakarta : Kementerian Luar Negeri., 2023

Deskripsi Fisik

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Bahasa

English

ISBN/ISSN

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Klasifikasi

NONE

Tipe Isi

text

Tipe Media

computer

Tipe Pembawa

online resource

Edisi

-

Subjek

-

Info Detail Spesifik

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Pernyataan Tanggungjawab

UPT Sekolah Dinas Luar Negeri

Versi lain/terkait

Lampiran Berkas

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