Indonesia: Downstream linkages
Indonesia is the largest exporter of nickel ore and tin in the world and ranks among the biggest for copper and gold production. To add value to these minerals, Indonesia imposed an export ban which has recently been relaxed due to private sector pushback and falling revenues. While the short-term costs of the ban are apparent, the long-term impacts remain unclear.
The Indonesia case study highlights the need to target downstream policies by sector and the shortcomings of blanket regulations. For nickel and copper, where Indonesia boasts world-class reserves, companies have largely remained and are more likely to build processing facilities. Indonesia’s weaker position in bauxite has meant that a lot of operations have shut down and investors have left due to the export ban.
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More About This Work
- Academic Units
- Columbia Center on Sustainable Investment
- International Institute for Sustainable Development
- Published Here
- May 22, 2020