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Significance
The policy involves restricting exports of certain raw materials in an attempt to encourage greater value-added processing domestically. The government banned exports of nickel ore in 2020 and now eyes restrictions on shipments of other commodities including bauxite, copper and tin.
Impacts
New taxes will be imposed on shipments of nickel pig iron and ferronickel in a bid to spur local production of stainless steel.
Indonesia will count on growing demand for its higher-value processed products domestically as well as overseas.
Attracting the long-term investment needed to build more smelters will hinge on maintaining political stability.
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2022
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