REPUBLIKA.CO.ID, JAKARTA -- The government has assured it will implement Law No.4 / 2009 on Mineral and Coal Resources as of January 12, 2014.

"Based on the law, we are no longer allowed to export (raw minerals) as of January 12, 2014. We should consistently abide by it," Coordinating Minister for Economic Affairs Hatta Rajasa said on Thursday.

He said that with the coming into effect of the law, mining companies were expected to accelerate the development of their smelters to process raw minerals before they exported their products.

The minister acknowledged that the banning of raw mineral exports would reduce state revenues by about US$4 billion and had the potential to increase the country's trade deficit.

However, the deficit is expected to not widen too much because the government has been trying to reduce its oil and gas imports, particularly after it has issued a policy on the use of bio-diesel to off set diesel oil consumption.

"We can still have its positive aspects because we can do industrial reforms at home. After processing through smelters, we can earn US$5 billion in exports," Hatta said.

He predicted that if regulations with regard to minerals were consistently be implemented, Indonesia's trade would begin to become balanced in 2016. Possibly, it could gain a surplus of about US$1.8 billion.

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