REPUBLIKA.CO.ID, JAKARTA – Indonesian state’s income would not only rise if government implemented the regulation for export duty set at 20 percent for 14 mining commodities but also to boost downstream industry development, the Coordinating Minister of Economy, Hatta Rajasa said.
“It prevents overexploitation and overproduction and also to develop downstream industry,” Rajasa said on Tuesday in Jakarta.
The implementation of the regulation cited on Ministerial Regulation of Energy and Mineral Resources Number 7/2012. The regulation is implemented from Mineral and Coal Mining Law. On the next 2014, every mining company must process its mining products locally.
Yet, the regulation will raise the state’s income in about 8 to 10 billion USD. Rajasa also believes the export volume will not decrease due to the implementation. So far, the export on mining products contributes in about 16.82 percent for total export in Indonesia.
The Chief of Fiscal Policy, Bambang SP Brodjonegoro, said the regulation was still being discussed in tariff team. He is optimistic the regulation will be released soon.
The 14 commodities are copper, gold, silver, tin, lead, chromium, platinum, bauxite, iron ore, nickel, molybdenum, manganese, and antimony. But the regulation is not valid for the owner of Contract of Work (KK).
“It is difficult to distinguish one ore and another because it is still on the form of earth. In order not to waste time and cause complications at ports, we will impose the same tariff for all materials,” Brodjonegoro explained.
The regulation is also imposed as the Ministry of Energy and Mineral Resources perceives frivolous response from the mining companies over the regulation. Some of them have not yet built their own smelter or cooperated with other smelter owner whereas they only have two years before the regulation is imposed.
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