HOW INDONESIA’S NICKEL BAN DESTROY EUROPEAN ECONOMY

HOW INDONESIA’S NICKEL BAN DESTROY EUROPEAN ECONOMY

What does this nickel focus mean actually more broadly according to the United States Geological Survey global nickel production reached 3.3 million metric tons in 2022 with Indonesia being the world’s largest nickel producer its total production is estimated to reach 1.6 million metric tons contributing 48,48% 48,48% to the total global nickel production

Throughout last year but Indonesia recently dropped a bombshell by putting the brakes on exporting raw nickel ore now you might be scratching your head wondering what’s the big deal? well here’s the lowdown nickel is like the MVP of many industries from stainless steel to electric vehicles

It’s the stuff that keeps the gears turning Europe’s booming automotive industry charging full speed ahead into the electric vehicle revolution and nickel is the crucial ingredient in those sleek EV batteries that we all love to rave about without a steady supply production could grind to a screeching halt leaving carmakers in the lurch

And consumers feeling the pinch and that’s just the tip of the iceberg the ripple effects of this nickel ban could send shockwaves across multiple sectors spelling trouble for Europe’s economic stability there is a strong amount for for particularly nickel ore from coming from the EU uh to indonesia and the current ban

is is hurting our firms but hold on to your hats because there’s more to this story beyond the automotive industry nickel plays a pivotal role in everything from aerospace to construction it’s the backbone of so many essential products and processes that we often take for granted

With Indonesia tightening its grip on nickel exports Europe is facing a potential supply crunch that could reverberate far and wide so brace yourselves because we’re about to uncover about the Indonesia’s Nickel ban policy and how it impacted European economy but before we continue please push the subscribe button first

Let’s go to 10,000 subscribers this month and I will make an interesting video about the new Nusantara Capital for you now let’s continue to the deeper discussion for centuries European colonial powers sought to exploit the resources of their colonies for their own gain they established trade relationships that heavily

Favoured the extraction and export of raw materials often at the expense of the indigenous populations this pattern of exploitation laid the groundwork for modern colonialism where economic dominance and resource extraction remain central themes Indonesia with its vast natural wealth has long been a target for resource extraction by European nations

Start with Portuguese from 1509 to 1595 Spain from 1521 to 1692 Dutch from 1602 to 1942 French from 1806 to 1811 British from 1811 to 1816 and Japan from 1942 to 1945 from the colonial era to the present day Indonesia has been pressured to export raw materials like nickel

Coal and timber to satisfy the voracious appetite of European industries this lopsided relationship has perpetuated a cycle of dependency and economic subjugation where Indonesia is relegated to the role of a mere supplier of raw materials take nickel for example Indonesia is the world’s biggest producers of nickel ore

A vital component in the production of stainless steel and electric vehicle batteries European industries rely heavily on Indonesian nickel to fuel their manufacturing processes and maintain their competitive edge in the global market however this reliance comes at a cost to Indonesia which often receives low prices for its raw materials

And sees little benefit from their value added production elsewhere President Joko Widodo at the State Palace in Jakarta on Friday December 2nd, 2022 said, be careful in the past during the VOC era there was something called forced labour and there was also something called forced cultivation in this modern era

Forced exports have emerged a new way of colonialism that we are forced to export the pressure to export raw materials to Europe has had profound implications for Indonesia’s economy and environment while European industries reap the rewards of Indonesian nickel local communities bear the brunt of environmental degradation

And social upheaval caused by mining operations moreover Indonesia’s economy remains vulnerable to fluctuations in global commodity prices leaving it at the mercy of external forces beyond its control Indonesia a gavel or a hammer if you want this was a symbolic gesture of course in view of Indonesia taking over officially

The presidency in 2023 so I know this unequal relationship underscores the persistence of modern colonialism where power imbalances and economic exploitation continue to shape global trade dynamics European countries with their economic might and historical legacy wield significant influence over resource rich nations like Indonesia dictating terms

And extracting wealth to sustain their own prosperity however the tide may be turning with the rise of economic nationalism and calls for greater resource sovereignty countries like Indonesia are beginning to push back against the forces of modern colonialism initiatives like Indonesia’s nickel ban signal a growing desire to assert control over its resources

And demand fair treatment in the global marketplace by what yeah boy price of nickel ore has surged to a five year high and it comes off the world’s largest nickel producer Indonesia announced an export ban of the raw quality from as early as January next year two years earlier than it had planned

Indonesia’s nickel ban policy isn’t just about economics it’s a bold move aimed at reclaiming control over its own natural resources for decades Indonesia has been a major exporter of raw materials including nickel to fuel the industries of developed nations primarily in Europe however this dynamic often perpetuates a power imbalance

Where wealthy nations dictate terms and exploit the resources of less developed countries enter modern colonialism historically colonial powers like European nations wielded immense influence over their colonies extracting resources for their own benefit while leaving the locals with the short end of the stick fast forward to today and we see

Echoes of this exploitative relationship in the global trade of raw materials European countries among others have long relied on cheap imports of raw materials from countries like Indonesia to fuel their industries and maintain their economic dominance but here we ban the export of nickel because we want to create as many job

Opportunities as possible in our country that’s the goal said Jokowi during the annual meeting of Bank Indonesia on Wednesday November 24th, 2021 Indonesia’s nickel ban represents a seismic shift in this narrative by halting the export of raw nickel ore Indonesia is asserting its sovereignty and reclaiming control over its resources

This move challenges the status quo and sends a clear message that the days of being a mere supplier of raw materials are over it’s a bold step towards economic self determination and breaking free from the shackles of modern colonialism now let’s talk about the implications for European countries

With Indonesia closing its doors to nickel exports European industries that rely heavily on this vital resource are feeling the heat suddenly they’re faced with the prospect of having to source nickel from other potentially more expensive markets or invest in domestic extraction and refining capabilities either way the days of easy access to cheap

Raw materials may be coming to an end challenging the economic model that has long sustained European prosperity The European Union has filed a lawsuit against Indonesia to the World Trade Organization or WTO over Indonesia’s nickel export ban which took effect on first in January 2021 so you guys know

Indonesia is doing protectionism and it’s working right so in recent years Indonesia has forbidden the export of nickel a key component in electric cars electrification more generally one of those commodities that’s about to be in a lot of demand and Indonesia said can’t export it without processing it

You can take it out of the country if you invest in processing into its next you know step up the value chain in Indonesia uh Indonesia’s gotten in a lot of trouble for this uh The World Trade Organization has censured them to some degree I’m not sure what stage of penalties that involves

The EU brought a case against them but um Indonesia isn’t blinking they’re just gonna keep going forward and the export ban aims to give added values to nickel meaning that nickel will not be exported in the form of raw ore Indonesia has imposed a ban on nickel export

As stipulated in the law No.3 – 2020 on mineral and coal meaning that nickel must be processed in Indonesia smelters before being sold overseas our policy regarding the downstreaming of nickel will continue even though we are taken to the WTO by the European Union it’s okay this is our nickel

It’s from our own country’s land said President Jokowi in CEO Forum on November 18th, 2021 beyond the economic ramifications Indonesia’s Nickel ban also shines a light on the broader issue of resource sovereignty it prompts us to question the ethics of a global trade system that perpetuates inequalities

And exploits the natural wealth of developing nations by asserting control over its nickel resources Indonesia is asserting its right to determine the terms of engagement and insisting on fair treatment in the global marketplace at the end of the day Indonesia’s Nickel ban policy serves as a wake up call for European countries

And the world at large it challenges the entrenched dynamics of modern colonialism and calls for a more equitable distribution of wealth and resources as we navigate the complexities of a globalised economy it’s essential to recognise the agency and sovereignty of nations like Indonesia and work towards a more just

And sustainable future for all Indonesia’s ban on exporting raw materials heralds a new era where the country takes control of its destiny putting an end to the vestiges of modern colonialism with this bold move Indonesia is reclaiming sovereignty over its rich natural resources ensuring they benefit its own people

Rather than fueling the industries of foreign nations foreign companies faced with the ban on exporting raw materials are compelled to rethink their manufacturing strategies many are now considering moving their manufacturing industries to Indonesia to gain access to the abundant raw materials within the country China for example

Has been more cooperative with Indonesia’s nickel export ban policy compared to the European Union which has taken Indonesia to the WTO it seems that China supports Indonesia’s desire to advance its nation as evidenced by the numerous Chinese companies relocating their factories to Indonesia this shift represents a seismic change in the global

Economic landscape as Indonesia emerges as a prime destination for investment and industrial development as foreign companies establish manufacturing facilities in Indonesia they bring with them capital technology and expertise that can catalyze economic growth and create employment opportunities for the Indonesian people this influx of investment has the potential to transform local communities

Stimulating economic activity and improving living standards across the country during an event President Jokowi stated that by simply stopping the export of raw nickel our export revenue has increased from the initial value of only 17 trillion rupiahs now it can reach 360 trillion rupiahs in a year moreover the

Establishment of manufacturing industries in Indonesia fosters technology transfer and skills development among the local workforce as Indonesian workers gain exposure to advanced manufacturing processes and technologies they acquire valuable skills that enhance their employability and contribute to the nation’s human capital development the benefits of foreign investment in Indonesia

Extend beyond the realm of economics by attracting foreign companies to set up manufacturing operations within its borders Indonesia strengthens its position as a regional economic powerhouse and enhances its geopolitical influence on the world stage this newfound influence empowers Indonesia to shape global trade dynamics and assert its interest in international forums importantly

The localization of manufacturing industries in Indonesia contributes to the diversification of the country’s economy and reduces its reliance on raw material exports by shifting towards value added production and industrialization Indonesia builds a more resilient and sustainable economic foundation that is less susceptible to external shocks and market fluctuations in conclusion

Indonesia’s ban on exporting raw materials marks a turning point in the nation’s history signalling the end of modern colonialism and the dawn of a new era of economic empowerment and self determination by attracting foreign investment and fostering industrial development within its borders Indonesia harnesses its rich natural resources

For the benefit of its own people paving the way for sustainable growth prosperity and inclusive development

HOW INDONESIA’S NICKEL BAN DESTROY EUROPEAN ECONOMY
by Ashley Robertson / @indonesiadocumentary

According to the United States Geological Survey or USGS report, global nickel production reached 3.3 million metric tons in 2022, with Indonesia being the world’s largest nickel producer in 2022. Its total production is estimated to reach 1.6 million metric tons, contributing 48.48% to the total global nickel production throughout last year.

But Indonesia, recently dropped a bombshell by putting the brakes on exporting raw nickel ore. Now, you might be scratching your head, wondering, “What’s the big deal?” Well, here’s the lowdown: Nickel is like the MVP of many industries, from stainless steel to electric vehicles. It’s the stuff that keeps the gears turning.

While Europe’s booming automotive industry, charging full speed ahead into the electric vehicle revolution. And Nickel is the crucial ingredient in those sleek EV batteries that we all love to rave about. Without a steady supply, production could grind to a screeching halt, leaving carmakers in the lurch and consumers feeling the pinch. And that’s just the tip of the iceberg, folks. The ripple effects of this nickel ban could send shockwaves across multiple sectors, spelling trouble for Europe’s economic stability.

Watch the full discussion in the full video.

#indonesia #jokowi #europeanunion

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