Indonesia’s planned ban on mineral ore shipments this month may create hundreds of thousands of job losses in Southeast Asia’s largest economy, an industry group said amid pleas to lawmakers.
“The most important thing is how to prevent 800,000 workers, who may be unemployed,” Natsir Mansyur, a deputy chairman at the Indonesian Chamber of Commerce and Industry, said in a statement. Bankruptcy, loan defaults could be among the outcomes, he said, according to Bloomberg News.
Jakarta wants to increase commodity shipments by promoting local processing and plans to prohibit ore from the world’s largest mined nickel producer effective January 12. A clear transition plan, added Mansyur, is needed to avoid economic stress, he said, citing a new International Monetary Fund (IMF).
Indonesia is one of the most mineralized places on the planet with the world’s top supplies of thermal coal. It is also a leading exporter of tin, zinc, copper, and other base and precious metals.