Fitri Novia Heriani, IGAP Trisnajaya
Thamrin Sihite, Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources (Ministry), said that the Ministry expects the Government to finance the development of mineral processing and refining plants (smelters) through state budget.
The statement arose in response to the policy on the requirement to develop mineral smelters in Indonesia, which was stipulated under Minister of Energy and Mineral Resources Regulation No. 11 of 2012 on the Amendment to the Minister Regulation No. 7 of 2012 on Increasing the Value-Added Tax for Minerals through Processing and Refining.
Thamrin stated that development of smelters, particularly copper smelters, has not yet met the Ministry’s expectations because private companies are reluctant to invest in them due to high costs.
“It is a big investment, which makes it hard for private companies to come in. However, the plan to develop smelters must be continued,” stated Thamrin, in Jakarta, Wednesday (6/2),
Thamrin proposed that the development of smelters should be financed by the state budget and managed by the state-owned company consortium.
“If private companies are reluctant to deal with the copper smelter development, the Government or state-owned company consortium can take over,” stated Thamrin.
Meanwhile, Andi Timo Pangerang, Deputy of Comission XI of the House of Representatives, commented that the state budget could be used to finance the development of smelters.
“However, state budget capability must be considered because development of smelters requires massive capital,” Andi concluded.
(jt/hot)
Fitri Novia Heriani, IGAP Trisnajaya
Thamrin Sihite, Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources (Ministry), said that the Ministry expects the Government to finance the development of mineral processing and refining plants (smelters) through state budget.
The statement arose in response to the policy on the requirement to develop mineral smelters in Indonesia, which was stipulated under Minister of Energy and Mineral Resources Regulation No. 11 of 2012 on the Amendment to the Minister Regulation No. 7 of 2012 on Increasing the Value-Added Tax for Minerals through Processing and Refining.
Thamrin stated that development of smelters, particularly copper smelters, has not yet met the Ministry’s expectations because private companies are reluctant to invest in them due to high costs.
“It is a big investment, which makes it hard for private companies to come in. However, the plan to develop smelters must be continued,” stated Thamrin, in Jakarta, Wednesday (6/2),
Thamrin proposed that the development of smelters should be financed by the state budget and managed by the state-owned company consortium.
“If private companies are reluctant to deal with the copper smelter development, the Government or state-owned company consortium can take over,” stated Thamrin.
Meanwhile, Andi Timo Pangerang, Deputy of Comission XI of the House of Representatives, commented that the state budget could be used to finance the development of smelters.
“However, state budget capability must be considered because development of smelters requires massive capital,” Andi concluded.
(jt/hot)