The apology was conveyed directly by the Managing Director of the IMF, Kristalina Georgieva, to the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, during a meeting on August 9, 2023.

Personal friendship and appreciation

Septian Hario Seto, Deputy for Investment and Mining at the Coordinating Ministry of Maritime Affairs and Investment, stated that a strong friendship bond between Luhut and Kristalina had been established since 2018, and both were open to discussing various matters, including this issue.

"In addition, she [Kristalina] also conveyed her apology to the Indonesian government through Mr. Luhut if the recent IMF report has caused controversy in Indonesia," Seto said in a written statement quoted on Sunday, August 13, 2023.

Furthermore, Seto mentioned that Kristalina expressed her appreciation for Indonesia's nickel downstreaming program, which has significantly contributed to the country's economy and macroeconomic stability.

Previously, in the IMF Staff Report (IMF Executive Board Concludes 2023 Article IV Consultation with Indonesia), the IMF had provided several recommendations for consideration by the Indonesian government regarding the gradual removal of export restrictions on mineral commodities.

In that document, the IMF also urged the Indonesian government not to extend the policy of banning nickel ore exports to other commodities.

Double standards

Previously, the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, expressed Indonesia's firm stance on the IMF's perspective regarding the export ban on Indonesian minerals.

Bahlil accused the IMF of applying double standards concerning the export ban policy implemented by President Jokowi's administration.

He noted that Indonesia appreciates the IMF's insights and recommendations regarding domestic macroeconomic growth. However, Bahlil believes that the IMF should not interfere with the government's policies, particularly regarding downstreaming.

"The IMF is using double standards. The IMF supports the goal of downstreaming to drive structural transformation and job creation. However, the IMF opposes the export ban policy, citing analyses of its pros and cons, which allegedly results in losses for the country's revenue and negatively impacts other countries," Bahlil stated in a press conference on Friday, June 30, 2023.

Furthermore, Bahlil criticized the IMF's perception of losses experienced by the Indonesian government following the implementation of downstreaming. Moreover, the IMF projected that foreign direct investment (FDI) flowing into Indonesia would grow by up to 19 percent in 2023.