2016 OECD Economic Surveys: Indonesia 2016

image of OECD Economic Surveys: Indonesia 2016

This 2016 OECD Economic Survey of Indonesia examines recent economic developments, policies and prospects. The special chapters cover: Regional Development and Public Spending.


The ore export ban and mining sector divestment rules

In January 2014 the Indonesian government imposed a ban on the export of unprocessed minerals, including nickel, bauxite, copper and iron. As discussed in the previous Survey, the intention was to force companies to add value domestically before exporting, thereby stimulating activity and employment in the ore processing and smelting sector. The ban was legislated in 2009, but, in the face of strong resistance from industry, the government hesitated to pull the trigger until the end of the term of the previous president. The timing was particularly unfortunate, coinciding with a substantial decline in global demand and the end of the commodity super cycle.


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