Jakarta. President Joko "Jokowi" Widodo remains committed to Indonesia's resource nationalism strategy despite facing international opposition, including a lawsuit from the European Union. The policy, which bans the export of unprocessed mineral ores and focuses on domestic processing, is central to Jokowi’s economic vision, aimed at boosting the country’s downstream industries.

Since 2020, Indonesia has enforced a nickel export ban to boost domestic smelting and processing industries. Despite international resistance, President Jokowi has emphasized that foreign investors are welcome to participate in these sectors. The ban compels companies to build factories in Indonesia, ensuring that the country captures more value from its resources.  The EU sued Indonesia at the World Trade Organization (WTO), saying that the ban could affect Europe’s stainless steel production.

“Although many countries have sued, opposed, and even attempted to thwart us, as a sovereign and great nation, we remain steadfast and continue to move forward,” Jokowi said during his final State of the Nation address in August.

He reiterated his commitment at a recent Indonesian Economic Scholars Association (ISEI) forum in his hometown of Solo recently, saying, “In normal global conditions, we wouldn’t be able to do this. Developed countries would certainly obstruct us.”

In addition to nickel, a ban on copper concentrate exports is in the works. However, the government has decided to delay the ban, originally set to begin in early June, until Dec. 31. This temporary waiver allows companies to continue exporting copper concentrates through the end of the year before the ban takes effect. The extension provides additional time for completing domestic smelting facilities and allows industries to adjust to the impending restrictions.

Jokowi recalled the challenges in convincing mining giant Freeport McMoRan to stop exporting copper concentrate and build a smelter in Indonesia. “People warned me, ‘Be careful, Freeport might refuse, Papua could separate, or you might be overthrown.’ Even after 55 years of operation, Freeport had never built a smelter. It wasn’t easy,” he explained.

After lengthy negotiations, Freeport Indonesia launched its Rp 56 trillion ($3.68 billion) smelter at the Java Integrated Industrial and Ports Estate (JIIPE) in Gresik on Sept. 23. The facility, which started operations in June, has an input capacity of 1.7 million tons of copper concentrate and is expected to reach full capacity by December 2024. Jokowi estimated that the state could earn around Rp 80 trillion from Freeport through dividends, royalties, and various taxes.

Jokowi emphasized that downstream industrialization is a cornerstone of Indonesia’s future, highlighting the importance of strategic plans to overcome potential obstacles from other nations. Beyond minerals, he noted Indonesia’s plans to develop other downstream sectors, such as seaweed, leveraging the country’s extensive coastline.

His successor, Prabowo Subianto, has pledged to continue Jokowi’s resource nationalism and industrialization efforts. As Jokowi nears the end of his presidency, the program is set to become one of his administration’s lasting legacies.

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