Legal Certainty Downstream Policy of Nickel Mining and the Prohibition of Exporting Raw Nickel Ore in Indonesia

Abstract

The primary aim of the Indonesian government's policy pertaining to the downstreaming process and the prohibition of exporting unprocessed nickel mining materials is to enhance the nation's value-added and economic advantages. Nevertheless, the implementation of this policy has given rise to numerous legal concerns. These concerns primarily revolve around the inconsistencies between overarching legal statutes, such as the Mineral and Coal Law, and the more specific regulations at the governmental and ministerial levels. These discrepancies primarily pertain to the downstreaming process and the prohibition on exporting raw materials from nickel mining. This study utilises a normative legal methodology, specifically the statute approach, to examine the coherence of legal rules and detect any discrepancies or contradictions among legal norms. Based on the research findings, it is observed that the government regulations and directives issued by the Minister of Energy and Mineral Resources pertaining to the relaxation of imports of nickel mining raw materials are in conflict with the provisions outlined in the Mineral and Coal Law. This law explicitly governs downstream processing and imposes a ban on the export of mineral mining raw materials. The presence of this contradiction gives rise to legal ambiguity, which has implications for the government's investment restrictions and efforts to improve value-added activities. Additionally, the country experiences a loss of revenue from taxes and royalties associated with the export of minerals.