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Mineral export bans spur domestic shipping demand, association says
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The cargo ship Mehmet Bey waits to pass through the Bosphorus Strait off the shores of Yenikapi during a misty morning in Istanbul, Turkey, on Oct. 31, 2022. (Reuters/Mehmet Emin Calsikan)
T
he government’s ban on the export of certain raw minerals has fueled demand for domestic shipping between mines and processing facilities, creating new opportunities for local companies, industry players say.
Faty Khusumo, deputy chair of the Indonesian National Shipowners' Association (INSA), said on Thursday that local shipping firms had seen an increase in orders to carry ore between the country’s islands as a result of the government’s push to develop a downstream mineral processing industry.
“Downstreaming has developed new shipping demand from one region to another within Indonesia,” Faty told reporters after a press briefing in Jakarta.
When asked about the demand for shipping higher-value mineral products out of the country, she said companies had yet to see an increase in orders.
The government has prohibited the export of nickel ore since 2020 to cultivate a domestic processing industry for the commodity.
In June of this year, it added bauxite, the ore from which aluminum is commercially extracted, to the list of minerals banned for export, again to encourage the development of a downstream industry. Other minerals such as copper, gold and tin are expected to follow.
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