REPUBLIKA.CO.ID, JAKARTA - Government keeps tax on ore export. Director of Mineral Development and Exploitation in Ministry of Energy and Mineral resources, Dede Suhendra said that government would provide concessions for mining companies exporting ores.

"This export duty is imposed to companies with 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 other minerals, namely bauxite, nickel, iron, 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 be consistent to implement regulation from January 12, 2014 based on Law No. 4/2009 on Mineral and Coal Regulation.

This regulation rules mining companies to build processing and refining plant. This measure will boost business improvement and provide added values to Indonesian mineral.

Strong mineral industry will be the back bone for manufacturing industries, such as aluminium and steel. The regulation is expected to improve downstream investment in Indonesia. 

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