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Indonesia tightens grip on nickel and coal exports

The stability of the global nickel ore supply rests upon the Philippines and New Caledonia, the world’s second- and third-largest nickel exporters respectively.

Norman Harsono (The Jakarta Post)
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Jakarta
Mon, January 20, 2020

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Indonesia tightens grip on nickel and coal exports Workers monitor activities at a nickel mine owned by nickel producer PT Vale Indonesia in Sulawesi in this file photo. (KONTAN/Cheppy A Muchlis)

I

ndonesia started 2020 with two important policies in the mining sector: the ban on nickel ore exports and the requirement that coal companies export coal using local ships.

As the country is a top exporter of both commodities, the policies will have a significant impact on the global market.

Energy and Mineral Resources (ESDM) Ministry regulation No. 11/2019 bans nickel ore exports starting in January while Trade Ministry regulation No. 80/2018 requires coal exports to use Indonesian-owned ships starting in May. Both regulations were designed to create more business opportunities in Indonesia, but miners have raised concerns about the policies’ impacts on global commodity prices and supplies.

Nevertheless, the Energy Ministry’s coal and mineral director Gen. Bambang Gatot Ariyono said his office would remain steadfast in enforcing regulations by “tightening industry monitoring through digital integration”.

Bambang’s office has launched several digital systems over the last quarter to tighten its oversight on the mining industry. The systems include the Sales Verification Module (MVP) and the Mineral and Coal Online Monitoring System (MOMS).

The nickel ore export ban is part of the government’s program to boost downstream mining industry. It requires miners to process ore at local smelters before shipping it overseas.

The stability of the global nickel ore supply rests upon the Philippines and New Caledonia, the world’s second- and third-largest nickel exporters respectively.

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