"Can anyone tell me the reasoning behind Indonesia putting aban...

"Can anyone tell me the reasoning behind Indonesia putting aban on the export of their bauxite."


It is for all minerals and it is to encourage investments into vertical processing for refined product.

This article sums up where I think I am reading it.

http://www.bloomberg.com/news/2014-...o-remain-should-widodo-win-poll-anz-says.html

A clued in expat who writes on this site thinks there is a chance Jakowi might lift the bans to get more cash flowing in. The Indos have a lot of bills to pay and in particular the fuel subsidy is costly. So at that very simplistic level there is a double edged sword. A choice to scrap subsidies or quickly generate regular income, including with mineral exports, to help pay for the subsidy. Neither of which are popular.

The other catch is that there is already massive investment being undertaken and planned because of the ban. Including expansion of capacity to produce refined aluminium. For aluminium read here: http://www.thejakartapost.com/news/2014/02/28/inalum-build-new-smelter-boost-output.html

So I tend to think that either of the potential presidents will bear with the short term pain while these new metal smelters and refineries are built. A bit of a wait and see proposition.