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View all search resultsA comment from vice-presidential candidate Gibran Rakabuming Raka in Sunday’s election debate has sparked questions about Indonesia’s strategy as it vies for a central role in the global electric vehicle (EV) industry, with some experts saying the government’s nickel policy jeopardizes the material’s future in battery production.
Following recent criticism, the government has argued in defense of its policy to boost investment in the nickel processing industry, saying it had paid off for the country with a significant rise in tax and export revenues.
Experts believe a disparity between global and domestic prices is what motivated some exporters to flout the country’s nickel export ban by selling to China, and they want the government to make policy changes to address the gap.
The government has admitted that the World Trade Organization ruling on its nickel export ban was in favor of the European Union but vows to appeal in a process that could buy the country years of time to build up domestic processing industries.
The Indonesian government has claimed that its raw nickel export ban, which started in January 2021, has shown positive impacts after seeing increases in mining investments and exports of nickel-derived products.
Police reinforcements have been sent to the territory known as "the pebble", which is of strategic importance to France and is part of a wider tussle for influence in the Pacific between Western countries and China.
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