Dramatic fall in mineral exports reported in Indonesia as a result of regulations on export

By Ben Bury

Indonesia’s National Statistics Bureau has announced that total mineral exports fell 27 per cent in the first half of 2014 due to a controversial ban on mineral ore shipments imposed by the government on 11 January 2014.

The Republic of Indonesia is the largest economy in south-east Asia and the second fastest-growing economy in the world. Part of the reason for the accelerated growth of Indonesia’s economy is the abundance of natural resources in the country. Indonesia is the world’s largest producer of tin and one of the world’s largest producers of bauxite, silver and aluminium. Indonesia’s copper, nickel, gold, and coal output is also considerable.

However, the growing nationalist sentiment in the country is having an impact on the mining industry, which is dominated by foreign investors from the US, Canada and the UK, as well as India and China. As international contractors make huge profits out of Indonesia’s mines, the government has come under increasing pressure to take steps to ensure more of the proceeds of the mining industry remain within Indonesia. Such measures, however, come at a cost to the country’s economy…

Click on the link below to read the rest of the Nabarro briefing.

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