Indonesia’s mineral ore export ban, imposed on Sunday, shouldn’t worsen the nation’s already worryingly high current account deficit, analysts told CNBC.
The long-awaited ban, which policymakers hope will boost profits from its mineral sector by forcing miners to process their ore at home before export, was announced by President Susilo Babang Yudhoyono on Sunday.
The ban specifically targeted the nickel and bauxite industries – worth more than $2 billion in annual shipments – as last minute changes excluded exports of copper, iron ore, lead and zinc concentrates, providing reprieve for U.S. mining giants Freeport and Newmont which produce 97 percent of Indonesia’s copper.
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Mingze Wu
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