Indonesia Struggles with an Export Ban

Twenty bulk carriers, most apparently under Chinese charter and at least one of which was loaded with nickel ore, were detained at Indonesian ports in the state of Sulawesi and perhaps elsewhere Jan. 9, according to the SinoShip News, the Shanghai International Shipping Community Network and other media. The latest reports of Chinese-chartered carriers' detention at Indonesian ports come just three days before Indonesia's ban on the export of raw metals and minerals is set to go into effect.

It is too early to tell what the ships' detention signals. While Chinese ships previously have encountered delays of several months at Indonesian ports, these delays could indicate that local authorities in some parts of Indonesia have been preparing for the ban's implementation, despite central leaders' vacillation over whether to ease or delay the ban. However, the detention could simply be the result of poor weather conditions at Sulawesi ports. Regardless of the cause, the detention will likely draw greater Chinese and international attention to the exports ban and to the Indonesian central government's ongoing struggle to carry out long-term strategic goals in the face of internal political constraints.