REPUBLIKA.CO.ID, PONTIANAK - Minister of Trade, Gitwa Wiryawan sad that the implementation of Law No. 4/2009 on mineral and coal mining would affect trade. The regulation bans the export of raw minerals beginning 12 January 2014. 

"The countrys exports will drop, since about 62 percent of Indonesias exports are raw minerals," Trade Minister Gita Wiryawan said over the weekend.

The ban on exports will also have adverse impacts on social aspects such as in the employment sector. Yet, Wiryawan reminded that in essence the implementation of the law would provide added values to Indonesia's natural resources. He said that younger generation in the future must not depend on selling raw mineral only. The raw material must be processed to increase it value before being exported.

The absorption of workers would increase if downstream industries on mineral resources were developing and increasing in number, the minister said.

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for West Kalimantan Santyoso Tio said processing industry at home would also improve the quality of products. He said that at present there were 11 thousands mining license holders across the country.

"The average length of operation time the mining license holders have passed so far is about 15 years," he said.

In the meantime, Finance Minister Chatib Basri has recently said that Indonesias processed mineral exports could increase significantly in 2015 if the mineral and coal mining law is implemented.

"Our processed mineral exports, which currently stand at 4.9 billion USD, could increase to 9 billion USD by 2015," he stated.

The new law, which will come into effect early next year, bans unprocessed mineral exports. Minerals can be exported only after being purified and processed at smelters. "The new law will lead to a decline in unprocessed mineral exports in 2014, which could lead to a decline in overall exports," Basri added.

The decline in unprocessed mineral exports could also affect the country's trade balance. However, the deficit might not grow too wide because the government was also been reducing its oil and gas imports because of a new biodiesel policy, he noted.

"The biodiesel policy will be fully implemented in 2014. Indonesia is expected to save 200 million USD  in foreign exchange in 2013 because of the biodiesel policy. We hope our savings increase to US$4 billion in 2014 because of a decline in oil and gas imports," he said.

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