Indonesia presidential election: Anies’ running mate, Iskandar slams Jokowi’s ‘reckless’ nickel investment policy

One of three front-runners to become Indonesia’s vice-president attacked Joko Widodo’s policy of forcing foreign companies to invest in mineral processing through export bans, stepping up criticism of the outgoing head of state’s economic record.

Muhaimin Iskandar, the running mate of presidential candidate Anies Baswedan, said the government's so called “downstreaming” policy had caused major environmental damage without significantly benefiting local people.

While the measures helped create much needed jobs in outlying islands, in particular on Sulawesi, foreign workers have dominated the new roles, Iskandar said.

“We saw in our mining business downstreaming is done recklessly,” Iskandar said at a debate with other vice presidential candidates on Sunday, ahead of the country’s election next month. “Downstreaming development is not significantly affecting people’s welfare.”

The comments are the fiercest criticism yet of the flagship industrial policy of Widodo – better known as Jokowi – which all three leading presidential candidates had until recently said they would uphold.

The outgoing head of state banned the export of raw nickel ore in 2020, drawing in billions of dollars worth of investment in plants to process it into more valuable products, spearheaded by Chinese firms including Tsingshan Holding Group.

The move fuelled a nickel mining and processing boom which upended the global market, causing the metal’s price to plunge and forcing miners in other countries to cut their output. The sector’s explosive growth has also driven large-scale deforestation, while predominantly coal-fuelled smelters have led to massive carbon emissions. Nickel is needed to create high-performing batteries for electric vehicles.

Iskandar also