REPUBLIKA.CO.ID, JAKARTA -- Government is still commitment to impose tax on ore export. Director of Mineral Development and Exploitation in Ministry of Energy and Mineral resources, Dede Suhendra said that government would give a concession for mining companies that exporting its ores.

"This export duty is imposed to companies that own mining contracts (KK) and mining business licences (IUP)," Suhendra said recently.

The value of ore export tax reached 20 percent of sales price. However, its detail information is still discussed with Ministry of Finance. The duty is not implemented for some minerals, namely bauxite, nickel, iron, ore, manganese, tin and zinc.

Export ban on raw materials is a positive policy for national economy. Economist of University of Indonesia, Muslim Anwar asked government to remain consistent with its efforts to implement this rule from January 12, 2014 based on Law No. 4/2009 on Mineral and Coal Regulation.

This regulation asked mining companies to build processing and refining plant. It will encourage business improvement and added value of mineral.

A strong mineral industry will be the back bone for manufacturing industries, such as aluminum and steel. This regulation will also improve downstream investment in Indonesia.

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