20-01-2022, 09:26 AM
19 Jan 2022 06:20PM
(Updated: 19 Jan 2022 06:20PM)
Indonesia is the top exporter of coal for power stations and the biggest palm oil producer in the world. It also holds a quarter of all nickel reserves. So policy shifts in the Southeast Asian archipelago - such as new restrictions on coal shipments or a proposed nickel export tax - often reverberate across global commodities markets, roiling trading and pushing up prices for other countries that need the supplies.
President Joko Widodo is nevertheless forging ahead with what’s known as resource nationalism, policies designed to get more benefit from the country’s natural riches for its 273 million people by restricting exports and encouraging more value-added processing at home.
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Indonesia has a long history of being plundered, since the Dutch began collecting nutmeg and cloves from what they called the East Indies 400 years ago. Even in modern times, changing the dynamic hasn’t been easy.
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Jokowi, whose second and final term ends in 2024, has repeatedly said he wants to eventually stop exports of all raw commodities in favor of producing refined goods that would create more jobs and improve the nation’s trade position.
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Is it working?
Somewhat. Exports of higher-value nickel pig iron rose after the curbs on lower-cost nickel ore shipments, indicating some success. And investments in Indonesia are accelerating. Chinese nickel producers like Tsingshan Holding Group are adding projects, including in the key producing regions of Sulawesi and Maluku. From 19 mineral smelters now, a total of 53 are expected to be operating in 2023, including new plants for Vale SA’s local unit and Antam, the Indonesian state miner.
The South Korea conglomerates Hyundai Motor Group and LG Energy Solution held a virtual groundbreaking in October on a US$1.1 billion EV battery plant, with commercial production expected to start in 2024, according to the companies. Chinese giant Contemporary Amperex Technology Co. has expressed interest, while Foxconn Technology Group discussed investments with Indonesia’s government in October. In the coal sector, U.S.-based Air Products Inc. is partnering with state-owned PT Bukit Asam and PT Pertamina on a gasification project.
https://www.channelnewsasia.com/business...ts-2445486
(Updated: 19 Jan 2022 06:20PM)
Indonesia is the top exporter of coal for power stations and the biggest palm oil producer in the world. It also holds a quarter of all nickel reserves. So policy shifts in the Southeast Asian archipelago - such as new restrictions on coal shipments or a proposed nickel export tax - often reverberate across global commodities markets, roiling trading and pushing up prices for other countries that need the supplies.
President Joko Widodo is nevertheless forging ahead with what’s known as resource nationalism, policies designed to get more benefit from the country’s natural riches for its 273 million people by restricting exports and encouraging more value-added processing at home.
......
Indonesia has a long history of being plundered, since the Dutch began collecting nutmeg and cloves from what they called the East Indies 400 years ago. Even in modern times, changing the dynamic hasn’t been easy.
......
Jokowi, whose second and final term ends in 2024, has repeatedly said he wants to eventually stop exports of all raw commodities in favor of producing refined goods that would create more jobs and improve the nation’s trade position.
......
Is it working?
Somewhat. Exports of higher-value nickel pig iron rose after the curbs on lower-cost nickel ore shipments, indicating some success. And investments in Indonesia are accelerating. Chinese nickel producers like Tsingshan Holding Group are adding projects, including in the key producing regions of Sulawesi and Maluku. From 19 mineral smelters now, a total of 53 are expected to be operating in 2023, including new plants for Vale SA’s local unit and Antam, the Indonesian state miner.
The South Korea conglomerates Hyundai Motor Group and LG Energy Solution held a virtual groundbreaking in October on a US$1.1 billion EV battery plant, with commercial production expected to start in 2024, according to the companies. Chinese giant Contemporary Amperex Technology Co. has expressed interest, while Foxconn Technology Group discussed investments with Indonesia’s government in October. In the coal sector, U.S.-based Air Products Inc. is partnering with state-owned PT Bukit Asam and PT Pertamina on a gasification project.
https://www.channelnewsasia.com/business...ts-2445486