Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Kartini L. Makmur, Andin Aditya Rahman
Raising the value added to domestic mining products, as mandated by Law No. 4 of 2009 on Minerals and Coal Mining, is currently an issue of national importance.
Accordingly, the Government is to restrict the export of mining raw materials starting next year in an effort to improve the added value of Indonesian mining products. This prohibition, the Government hopes, will give impetus to the development of Indonesia’s smelting industry.
The Government is currently drafting the details of this plan into a regulation on so called domestic market obligations (DMO). Dede Inda Suhendra, Director of Development of Mineral Exploitation at the Ministry of Energy and Mineral Resources, explained that this regulation will be similar to the regulation that requires coal to be distributed to electric power plants.
However, the specific mechanisms for this new DMO regulation, as Dede explained, are still being considered. “The mechanism will involve a calculation based on the processing demands for industry and trade,” Dede said.
The Government, continued Dede, hopes that the export of raw materials will cease subsequent to the issuance of this DMO regulation.
However, the Government will still permit mineral and coal companies to export raw materials, provided that they commit to constructing a smelter. When construction of the smelter is complete, the company must cease all exports of raw materials.
Other than regulating the domestic supply of raw materials, the new DMO regulation will also regulate the by-products of minerals and coal processing.
Azis Subekti, Deputy Secretary General of the National Mandate Party, emphasized that the drafting of the new DMO regulation for the smelter industry should be considered as a time for the Government to think about the management of adding value to Indonesia’s natural resources, especially mining products.
“The mandate of the Mineral and Coal Mining Law must be carried out in accordance with the spirit of the Constitution,” asserted Azis.
(hot/kc)
Kartini L. Makmur, Andin Aditya Rahman
Raising the value added to domestic mining products, as mandated by Law No. 4 of 2009 on Minerals and Coal Mining, is currently an issue of national importance.
Accordingly, the Government is to restrict the export of mining raw materials starting next year in an effort to improve the added value of Indonesian mining products. This prohibition, the Government hopes, will give impetus to the development of Indonesia’s smelting industry.
The Government is currently drafting the details of this plan into a regulation on so called domestic market obligations (DMO). Dede Inda Suhendra, Director of Development of Mineral Exploitation at the Ministry of Energy and Mineral Resources, explained that this regulation will be similar to the regulation that requires coal to be distributed to electric power plants.
However, the specific mechanisms for this new DMO regulation, as Dede explained, are still being considered. “The mechanism will involve a calculation based on the processing demands for industry and trade,” Dede said.
The Government, continued Dede, hopes that the export of raw materials will cease subsequent to the issuance of this DMO regulation.
However, the Government will still permit mineral and coal companies to export raw materials, provided that they commit to constructing a smelter. When construction of the smelter is complete, the company must cease all exports of raw materials.
Other than regulating the domestic supply of raw materials, the new DMO regulation will also regulate the by-products of minerals and coal processing.
Azis Subekti, Deputy Secretary General of the National Mandate Party, emphasized that the drafting of the new DMO regulation for the smelter industry should be considered as a time for the Government to think about the management of adding value to Indonesia’s natural resources, especially mining products.
“The mandate of the Mineral and Coal Mining Law must be carried out in accordance with the spirit of the Constitution,” asserted Azis.
(hot/kc)