Implications of the Downstream Policy of Nickel Export Activities to the European Union on the Fluctuations in the Stock Price of the Mining Sector on the Indonesia Stock Exchange

Abstract

This study evaluates the impact of Indonesia's nickel export downstream policy on fluctuations in the stock price of the mining sector on the Indonesia Stock Exchange (IDX), especially in the context of trade with the European Union. By banning the export of raw nickel ore and encouraging domestic processing, the government aims to increase the added value of commodities and strengthen the national economy. This policy provides challenges and opportunities, affects the dynamics of the capital market, and triggers a trade dispute with the European Union that opposes the ban. This study uses a normative juridical method to analyze the impact of the policy on the performance of mining sector issuers and capital market response. The results show that the downstream policy has the potential to increase stock price volatility in related sectors and create uncertainty in the market, although it can support long-term price stability and attract investment.