Indonesia will enforce 2022 ban on raw mineral ore exports: official

[Indos]

July 18, 2019 9:52 PM

Updated 2 years ago


Indonesia will enforce 2022 ban on raw mineral ore exports: official


JAKARTA (Reuters) - A senior Indonesian mining ministry official pledged on Thursday that authorities would enforce a ban on the export of raw ore exports by 2022 to make miners process minerals in the country.

Based on a 2017 mining regulation, Indonesia is due to stop allowing the export of unprocessed ore starting Jan. 12, 2022, after giving miners a five year period to build smelters onshore.

“They must finish building (smelters),” Bambang Gatot, the mining ministry’s Director General of Coal and Minerals, said on Thursday.

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“If they don’t finish in time, they should continue building, but they won’t be allowed to export ore,” he told reporters.

Indonesia stopped exports of raw ore such as nickel, bauxite and concentrates of other minerals from 2014 to 2016, and the revenues of mining companies such as PT Aneka Tambang have declined following the ban. (reut.rs/2OFsX2H)

Given the impact, the government then relaxed the ban in January 2017 under certain conditions including that companies put forward plans to build smelters.


Nickel prices have climbed in both London and Shanghai on concerns about the 2022 ban in ore exports. [MET/L]

As of July, there were 41 smelter projects being constructed with more than half of them nickel smelting projects, data from Indonesia’s mining ministry showed.

Twenty-two nickel smelting plants are currently being developed with an estimated 46.33 million tonnes of input capacity. Three of these are near completion, while the others are mostly still in the early stage of construction.

Indonesia has 13 existing nickel smelting facilities with a combined input capacity of 24.52 million tonnes, which mostly produce nickel pig iron (NPI).

Reporting by Wilda Asmarini; Writing by Fransiska Nangoy; Editing by Ed Davies and Christian Schmollinger
Our Standards: The Thomson Reuters Trust Principles.

Indonesia will enforce 2022 ban on raw mineral ore exports: official

A senior Indonesian mining ministry official pledged on Thursday that authorities would enforce a ban on the export of raw ore exports by 2022 to make miners process minerals in the country.

www.reuters.com

 

[peagle]

Indonesia will enforce 2022 ban on raw mineral ore exports: official


JAKARTA (Reuters) - A senior Indonesian mining ministry official pledged on Thursday that authorities would enforce a ban on the export of raw ore exports by 2022 to make miners process minerals in the country.

Based on a 2017 mining regulation, Indonesia is due to stop allowing the export of unprocessed ore starting Jan. 12, 2022, after giving miners a five year period to build smelters onshore.

“They must finish building (smelters),” Bambang Gatot, the mining ministry’s Director General of Coal and Minerals, said on Thursday.

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“If they don’t finish in time, they should continue building, but they won’t be allowed to export ore,” he told reporters.

Indonesia stopped exports of raw ore such as nickel, bauxite and concentrates of other minerals from 2014 to 2016, and the revenues of mining companies such as PT Aneka Tambang have declined following the ban. (reut.rs/2OFsX2H)

Given the impact, the government then relaxed the ban in January 2017 under certain conditions including that companies put forward plans to build smelters.


Nickel prices have climbed in both London and Shanghai on concerns about the 2022 ban in ore exports. [MET/L]

As of July, there were 41 smelter projects being constructed with more than half of them nickel smelting projects, data from Indonesia’s mining ministry showed.

Twenty-two nickel smelting plants are currently being developed with an estimated 46.33 million tonnes of input capacity. Three of these are near completion, while the others are mostly still in the early stage of construction.

Indonesia has 13 existing nickel smelting facilities with a combined input capacity of 24.52 million tonnes, which mostly produce nickel pig iron (NPI).

Reporting by Wilda Asmarini; Writing by Fransiska Nangoy; Editing by Ed Davies and Christian Schmollinger
Our Standards: The Thomson Reuters Trust Principles.

Indonesia will enforce 2022 ban on raw mineral ore exports: official

A senior Indonesian mining ministry official pledged on Thursday that authorities would enforce a ban on the export of raw ore exports by 2022 to make miners process minerals in the country.

www.reuters.com

It's good to see a Muslim country take sensible, concrete steps.
A very good decision, let's hope they stick with it, and not bow to any external pressure.

 

[Indos]

It's good to see a Muslim country take sensible, concrete steps.
A very good decision, let's hope they stick with it, and not bow to any external pressure.

Yup, actually for nickle ore, we have expedited the ban and it is effective since January 2020 and currently EU is taking action to go against that decision.


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January 14, 202110:48 PM
Updated 2 months ago


UPDATE 1-EU escalates WTO case against Indonesia over export curbs
By Philip Blenkinsop
2 Min Read

(Adds EU Commission comment, case background)

BRUSSELS, Jan 14 (Reuters) - The European Union escalated its challenge at the World Trade Organization on Thursday over Indonesia’s export ban on nickel ore by requesting the Geneva-based trade body form a panel to adjudicate on the case.

The bloc launched its initial complaint in Nov 2019 against the export restrictions on raw materials, notably nickel ore and iron ore, that are used to make stainless steel.


The European Commission, which coordinates trade policy for the 27-nation European Union, said Indonesia’s export ban on nickel ore and domestic processing requirements for nickel ore and iron ore were illegal and unfair for EU steel producers.

“The fact is that no WTO member is permitted to restrict exports of raw materials in this way, imposing illegal restrictions to favour domestic producers,” EU Trade Commissioner Valdis Dombrovskis said in a statement.

The request for a panel follows a period of consultations from Jan. 30, 2020, which failed to resolve the issue. A ruling of the panel would likely be at least a year away.


The EU stainless steel industry was producing at its lowest level for 10 years, while Indonesia was set to become the second largest global producer after China due to unfair measures, the Commission said.

The $20 billion EU stainless steel industry employs some 30,000 people directly, with major players Acerinox, Aperam, Outokumpu and Acciai Speciali Terni.

Separately, the EU imposed duties on hot-rolled flat stainless steel from Indonesia in 2019 and launched an investigation in September into cold-rolled stainless products from Indonesia. (Reporting by Philip Blenkinsop, editing by Marine Strauss, William Maclean)

Our Standards: The Thomson Reuters Trust Principles.

UPDATE 1-EU escalates WTO case against Indonesia over export curbs

The European Union escalated its challenge at the World Trade Organization on Thursday over Indonesia's export ban on nickel ore by requesting the Geneva-based trade body form a panel to adjudicate on the case.

www.reuters.com

 

[t1000]

Why ban when they can be sold in controlled quantities for good prices.
As I understand indonesia is rich in several resources including nickel.

 

[nufix]

Yup, actually for nickle ore, we have expedited the ban and it is effective since January 2020 and currently EU is taking action to go against that decision.


--------------------------------------------------------------------------------------------------------------------


January 14, 202110:48 PM
Updated 2 months ago


UPDATE 1-EU escalates WTO case against Indonesia over export curbs
By Philip Blenkinsop
2 Min Read

(Adds EU Commission comment, case background)

BRUSSELS, Jan 14 (Reuters) - The European Union escalated its challenge at the World Trade Organization on Thursday over Indonesia’s export ban on nickel ore by requesting the Geneva-based trade body form a panel to adjudicate on the case.

The bloc launched its initial complaint in Nov 2019 against the export restrictions on raw materials, notably nickel ore and iron ore, that are used to make stainless steel.


The European Commission, which coordinates trade policy for the 27-nation European Union, said Indonesia’s export ban on nickel ore and domestic processing requirements for nickel ore and iron ore were illegal and unfair for EU steel producers.

“The fact is that no WTO member is permitted to restrict exports of raw materials in this way, imposing illegal restrictions to favour domestic producers,” EU Trade Commissioner Valdis Dombrovskis said in a statement.

The request for a panel follows a period of consultations from Jan. 30, 2020, which failed to resolve the issue. A ruling of the panel would likely be at least a year away.


The EU stainless steel industry was producing at its lowest level for 10 years, while Indonesia was set to become the second largest global producer after China due to unfair measures, the Commission said.

The $20 billion EU stainless steel industry employs some 30,000 people directly, with major players Acerinox, Aperam, Outokumpu and Acciai Speciali Terni.

Separately, the EU imposed duties on hot-rolled flat stainless steel from Indonesia in 2019 and launched an investigation in September into cold-rolled stainless products from Indonesia. (Reporting by Philip Blenkinsop, editing by Marine Strauss, William Maclean)

Our Standards: The Thomson Reuters Trust Principles.

UPDATE 1-EU escalates WTO case against Indonesia over export curbs

The European Union escalated its challenge at the World Trade Organization on Thursday over Indonesia's export ban on nickel ore by requesting the Geneva-based trade body form a panel to adjudicate on the case.

www.reuters.com

lol EU hates it when countries they thought were beneath them start to challenge their industries at home.

 

[powastick]

Yup, actually for nickle ore, we have expedited the ban and it is effective since January 2020 and currently EU is taking action to go against that decision.


--------------------------------------------------------------------------------------------------------------------


January 14, 202110:48 PM
Updated 2 months ago


UPDATE 1-EU escalates WTO case against Indonesia over export curbs
By Philip Blenkinsop
2 Min Read

(Adds EU Commission comment, case background)

BRUSSELS, Jan 14 (Reuters) - The European Union escalated its challenge at the World Trade Organization on Thursday over Indonesia’s export ban on nickel ore by requesting the Geneva-based trade body form a panel to adjudicate on the case.

The bloc launched its initial complaint in Nov 2019 against the export restrictions on raw materials, notably nickel ore and iron ore, that are used to make stainless steel.


The European Commission, which coordinates trade policy for the 27-nation European Union, said Indonesia’s export ban on nickel ore and domestic processing requirements for nickel ore and iron ore were illegal and unfair for EU steel producers.

“The fact is that no WTO member is permitted to restrict exports of raw materials in this way, imposing illegal restrictions to favour domestic producers,” EU Trade Commissioner Valdis Dombrovskis said in a statement.

The request for a panel follows a period of consultations from Jan. 30, 2020, which failed to resolve the issue. A ruling of the panel would likely be at least a year away.


The EU stainless steel industry was producing at its lowest level for 10 years, while Indonesia was set to become the second largest global producer after China due to unfair measures, the Commission said.

The $20 billion EU stainless steel industry employs some 30,000 people directly, with major players Acerinox, Aperam, Outokumpu and Acciai Speciali Terni.

Separately, the EU imposed duties on hot-rolled flat stainless steel from Indonesia in 2019 and launched an investigation in September into cold-rolled stainless products from Indonesia. (Reporting by Philip Blenkinsop, editing by Marine Strauss, William Maclean)

Our Standards: The Thomson Reuters Trust Principles.

UPDATE 1-EU escalates WTO case against Indonesia over export curbs

The European Union escalated its challenge at the World Trade Organization on Thursday over Indonesia's export ban on nickel ore by requesting the Geneva-based trade body form a panel to adjudicate on the case.

www.reuters.com

Although I agree that the ban is justified, I don't see Indonesia winning the case. I don't see a favorable end if this continues.

 

[Indos]

Although I agree that the ban is justified, I don't see Indonesia winning the case. I don't see a favorable end if this continues.

Why ? Indonesia has long been banning our uranium and thorium to be sold outside Indonesia (and even only government institution (BATAN) and its state owned company (PT INUKI) can use it and WTO doesnt even intervene.......

Nickle is not only mined in Indonesia, EU can get it elsewhere.......

 

[TruthSeeker]

Why ? Indonesia has long been banning our uranium and thorium to be sold outside Indonesia (and even only government institution (BATAN) and its state owned company (PT INUKI) can use it and WTO doesnt even intervene.......

Nickle is not only mined in Indonesia, EU can get it elsewhere.......

Indonesia can withdraw from the WTO if it doesn't like the rules. EU nations have every right to insist that Indonesia honor WTO responsibilities if it wants to have WTO benefits. Apparently the bans on uranium and thorium sales have not harmed any WTO member sufficiently for them to mount a formal objection. That present circumstance does not absolve Indonesia from not harming WTO members in the EU with its unilateral policies.

 

[Indos]

Indonesia can withdraw from the WTO if it doesn't like the rules. EU nations have every right to insist that Indonesia honor WTO responsibilities if it wants to have WTO benefits. Apparently the bans on uranium and thorium sales have not harmed any WTO member sufficiently for them to mount a formal objection. That present circumstance does not absolve Indonesia from not harming WTO members in the EU with its unilateral policies.

Any government has right to control its own raw material, just see how OPEC can control it, free market system in international trade cannot violate sovereignity of one nation. Indonesia has also many FTA like with RCEP, ASEAN, Australia. We can also ban Airbus plane in here and if USA support EU, we can buy Chinese planes.

 

[TruthSeeker]

Any government has right to control its own raw material, just see how OPEC can control it, free market system in international trade cannot violate sovereignity of one nation. Indonesia has also many FTA like with RCEP, ASEAN, Australia. We can also ban Airbus plane in here and if USA support EU, we can buy Chinese planes.

If what you say is true of the EU-Indonesia dispute over nickel trade, then Indonesia will win the WTO case. No problem.

 

[powastick]

Any government has right to control its own raw material, just see how OPEC can control it, free market system in international trade cannot violate sovereignity of one nation. Indonesia has also many FTA like with RCEP, ASEAN, Australia. We can also ban Airbus plane in here and if USA support EU, we can buy Chinese planes.

If you don't play by the rule, you will get Operation Ajax. The West are not nice people. Timor Leste isn't enough?

 

[Indos]

If you don't play by the rule, you will get Operation Ajax. The West are not nice people. Timor Leste isn't enough?

Well you always have pessimist view toward Indonesia government plan and strategy, not long ago you say Indonesia economy will be broken due to Covid and all economic prediction about Indonesia economy during 2020 which said mild effect of the virus on the economy is false according to you........

 

[powastick]

Well you always have pessimist view toward Indonesia government plan and strategy, not long ago you say Indonesia economy will be broken due to Covid and all economic prediction about Indonesia economy during 2020 which said mild effect of the virus on the economy is false according to you........

I don't have to agree with anything, including what Malaysia government did. When I agree, you don't hear from me much, so your perception is misleading.

Cause right now many are printing money to keep the economy afloat including Malaysia, I was saying exchange rupiah to other currencies(of course to those countries least effected by covid19). You could have easily profited. I think when i call this Indonesia had 50k-100k cases, today is 1.3 million. I'm more impress on how Jokowi managed dissent. Some are saying there will be a bad inflation after recovery because of the loose money policy right now.

 

[Indos]

I don't have to agree with anything, including what Malaysia government did. When I agree, you don't hear from me much, so your perception is misleading.

Cause right now many are printing money to keep the economy afloat including Malaysia, I was saying exchange rupiah to other currencies(of course to those countries least effected by covid19). You could have easily profited. I think when i call this Indonesia had 50k-100k cases, today is 1.3 million. I'm more impress on how Jokowi managed dissent. Some are saying there will be a bad inflation after recovery because of the loose money policy right now.

Well even though our central bank do takes action, but mostly the stimulus is financed by Government obligation where significant amount of it is Rupiah Bond bought by Indonesian financial institution, companies, and individuals, so basically the money is just shifted, not created like in printing scheme.

Under Jokowi government our inflation is under control at 3 percent, much better during SBY administration which was at 8%. We have already got that 3 percent inflation since 2015. The smaller inflation IMO is not only because prudent Central Bank policy, but I believe we have now developed better economic system where it is becoming more competitive in the supply side, so that it is not easy for businesses to increase price despite higher demand due to increase money circulation, the situation will be much different in an economy which has more monopolistic tendency.

Indonesian company with a specialized business is also now more profitable than a conglomeration company.

 

[powastick]

Well even though our central bank do takes action, but mostly the stimulus is financed by Government obligation where significant amount of it is Rupiah Bond bought by Indonesian financial institution, companies, and individuals, so basically the money is just shifted, not created like in printing scheme.

Under Jokowi government our inflation is under control at 3 percent, much better during SBY administration which was at 8%. We have already got that 3 percent inflation since 2015. The smaller inflation IMO is not only because prudent Central Bank policy, but I believe we have now developed better economic system where it is becoming more competitive in the supply side, so that it is not easy for businesses to increase price despite higher demand due to increase money circulation, the situation will be much different in an economy which has more monopolistic tendency.

Indonesian company with a specialized business is also now more profitable than a conglomeration company.

View attachment 722457

This time the inflation is global, not easy to stop. Indonesia will lose the WTO ruling, but if Indonesia manage to some to build some smelter here, just drop the ban and Indonesia already won and still be part of WTO.