Indonesia is home to a vast abundance of natural resources, including mining products like bauxite. The country is said to have enough reserves of it to last for 240 years, with a resource of 6.6 billion tons and 3 billion tons in reserves.
In light of this, President Joko Widodo has imposed a ban on the export of bauxite ore from Indonesia starting in June 2023.
The potential of bauxite ore in Indonesia is ranked sixth in the world in terms of reserves, with 6.6 billion tons of resources and 3 billion tons of reserves.
According to Irwandy Arif, Special Staff of the Minister of Energy and Mineral Resources for Acceleration of Mineral and Coal Governance, Indonesia ranks sixth in the world in terms of bauxite reserves, with 6.6 billion tons of resources and 3 billion tons of reserves.
With current production rates, the Indonesia’s reserves could last up to 240 years.
In a Mining Workshop for Journalists, Irwandy Arif revealed, “Our resources are 6.6 billion tons, reserves of 3 billion tons, Indonesia ranks sixth, ore production is 27.7 million tons in 2022. Then the reserve’s durability is still long, 240 years if at the current production level.”
Irwandy also stated that Indonesia produced a total of 27.7 million tons of bauxite in 2022, with 20 million tons imported and the remaining 7.8 million tons absorbed domestically.
However, the Indonesian Bauxite and Iron Ore Entrepreneurs Association (APB3I) previously disclosed that tens of millions of tons of Indonesian bauxite ore might not be absorbed domestically.
This comes after the government’s plan to close the bauxite export pipeline starting this year. The Acting Chairman of APB3I, Ronald Sulistyanto, believes that refining facilities or smelters are the solution to absorb the tens of millions of tons of bauxite ore in Indonesia.
He said, “There is still a difference of 44 million tons of its ore that has not been absorbed, especially if the ban on exports is to be implemented starting in June 2023.”
While the ban on bauxite and other mineral exports aims to support Indonesia’s downstream industry, the issue of smelter capacity remains unresolved.
The Indonesian government’s decision to stop exporting mineral ores and promote smelting domestically is critical to ensuring long-term resource sustainability and economic growth.