Indonesian Customs Intensifies Rare Earth Inspections, Hinderings Nickel Product Exports

Multiple metal product exports from Indonesia face disruptions due to new customs inspection rules requiring mandatory testing for rare earth elements and radioactive substances like uranium. This new regulation has impacted the flow of key domestic commodities.

According to sources, several cargo shipments have been delayed this month. Indonesian customs now demand additional composition testing reports for certain critical mineral products. The main export categories affected are alumina (aluminum raw material) and nickel pig iron. So far, no specific data is available on the duration of the disruptions or the total volume of affected exports.

A spokesperson for the Indonesian Customs Office explained that the government is working with independent third-party testing agencies to verify the composition of exported mineral products, including screening for rare earth elements. The customs office emphasized that the government is not arbitrarily suspending or halting exports of commodities like alumina and nickel. As long as products are fully compliant and meet all regulatory requirements, export clearance will be smooth.

From a policy perspective, Indonesia has long used trade restrictions to promote the development of downstream mineral processing industries. A notable example was the ban on direct exports of raw nickel ore and bauxite a few years ago. Now, the government's regulatory focus has shifted to rare earth resources, based on regulations enacted last year that mandate these resources be prioritized for domestic processing and utilization.

Earlier this month, Indonesia's Attorney General's Office identified multiple suspects in a case involving the alleged illegal export of rare earth-containing materials. The suspects are accused of falsifying laboratory test reports to conceal rare earth content in shipments, thereby obtaining illegal export permits.

Although Indonesia is not a major global supplier of rare earths or uranium, these substances often appear as by-products in the smelting and processing of major metals. For example, tin mining produces significant amounts of monazite, a mineral that can be processed to extract various rare earth elements.

According to industry sources, the nickel products affected by these customs inspections are primarily nickel intermediate products from hydrometallurgical processing.