Kadin: Mineral Export Ban Will Impair Economic Growth

Fitri Novia Heriani, Yanuar Pribadhie
 
As mandated by Law No. 4 of 2009on Mineral and Coal Mining, from January 14 next year Indonesia will limit exports of raw minerals and ore.
 
In addition, there is also a requirement for mining companies to build smelters to process their mining products.
 
These requirements, says the Indonesia Chamber of Commerce (Kadin), will cause sluggish growth in regional economies.
 
“Regional economies are affected by mining business operations, such as Contracts of Work, Mining Permits, and Communal Mining Permit holders,” said Natsir Mansyur, Deputy General Chairman of Kadin for the Empowerment of Regional Sectors.
 
Natsir notes that one crucial issue related to the implementation of the Mining Law is the fate of 800,000 workers who could lose their jobs.
 
“We are even afraid that there is possibility that businesses will not be able to make their debt payments that will lead to a number of bankruptcies,” said Natsir.
 
Natsir says he supports the downstream policy on minerals for reasons of national interest. However, this policy needs to be accompanied by appropriate preparation so as not to cause harm to the many stakeholders affected by that policy.
 
Nastir added  that much infrastructure built by businesses without government support has in fact been abandoned.
 
“With regard to the policy, we must entrust it to the House of Representatives and the Government. However, it should follow that businesses show good faith and build smelters what will not be abandoned,” stated Natsir.
 
Natsir believes that it would be better if the Government and the House of Representatives grant some conditional exceptions for ore export as the Mining Law does not include prohibitions on ore export.
 
In response, Hersono Wibowo, Head of the Sub-directorate of Mineral Trade and Production at the Ministry of Energy and Mineral Resources, stated that his institution has been in discussions about the  mineral export ban.
 
“It is possible that everything can change. Let’s just wait for the discussions,” concludes Hersono.
 
(hot/kc)
Fitri Novia Heriani, Yanuar Pribadhie
 
As mandated by Law No. 4 of 2009on Mineral and Coal Mining, from January 14 next year Indonesia will limit exports of raw minerals and ore.
 
In addition, there is also a requirement for mining companies to build smelters to process their mining products.
 
These requirements, says the Indonesia Chamber of Commerce (Kadin), will cause sluggish growth in regional economies.
 
“Regional economies are affected by mining business operations, such as Contracts of Work, Mining Permits, and Communal Mining Permit holders,” said Natsir Mansyur, Deputy General Chairman of Kadin for the Empowerment of Regional Sectors.
 
Natsir notes that one crucial issue related to the implementation of the Mining Law is the fate of 800,000 workers who could lose their jobs.
 
“We are even afraid that there is possibility that businesses will not be able to make their debt payments that will lead to a number of bankruptcies,” said Natsir.
 
Natsir says he supports the downstream policy on minerals for reasons of national interest. However, this policy needs to be accompanied by appropriate preparation so as not to cause harm to the many stakeholders affected by that policy.
 
Nastir added  that much infrastructure built by businesses without government support has in fact been abandoned.
 
“With regard to the policy, we must entrust it to the House of Representatives and the Government. However, it should follow that businesses show good faith and build smelters what will not be abandoned,” stated Natsir.
 
Natsir believes that it would be better if the Government and the House of Representatives grant some conditional exceptions for ore export as the Mining Law does not include prohibitions on ore export.
 
In response, Hersono Wibowo, Head of the Sub-directorate of Mineral Trade and Production at the Ministry of Energy and Mineral Resources, stated that his institution has been in discussions about the  mineral export ban.
 
“It is possible that everything can change. Let’s just wait for the discussions,” concludes Hersono.
 
(hot/kc)
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