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Kartini L Makmur, Yanuar Pribadhie
Despite it being less than two weeks away with the Government required to implement its policy to ban the export of minerals under Law No.4 of 2009 (“Mining Law”) from January 12, the Government continues to vacillate in a dilemma between implementing the export ban versus saving thousands of mining workers’ jobs that will be lost due to the policy.
These difficult circumstances are putting pressure on many mining companies, including giants such as Newmont and Freeport, which believe the policy will negatively impact on their revenue from the export of raw materials. Many mineral mining businesses could cease operations and consequently layoff workers in order to continue financially viable operations.
Natsir Mansyur, the Deputy General Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Sector Empowerment, believes that approximately 800 thousand workers will be laid off if the policy is implemented.
According to Nastir, Freeport could possibly layoff around 40 thousand workers with the number for Newmont lower at around 25 thousand workers. “These figures exclude workers that indirectly work in the mining sector such as contractors, people’s mining concession holders (Industri Pertambangan Rakyat), and holders of mining business licenses, which total around 600,” he explained.
In support of Natsir’s statement, Jero Wacik – the Minister of Energy and Mineral Resources - commented that “Implementing the Mining Law and saving many jobs are equally important”. Jero also added that many parties have informed him that the minerals mining industry will collapse if the policy is enforced.
Article 170 of the Mining Law provides that the Government has 5 years to implement the domestic processing and purification of locally mined minerals from its enactment in 2009, the basis for the fast approaching export ban.
Article 170 is further legislated under Minister of Energy and Mineral Resources Regulation No. 7 of 2012, as amended by Ministerial Regulation No. 11 of 2012 and Ministerial Regulation No. 20 of 2013 (Amendment). The 12 January 2014 deadline for the ban on the export of minerals was introduced by the Amendment.
(ds/kc)
Despite it being less than two weeks away with the Government required to implement its policy to ban the export of minerals under Law No.4 of 2009 (“Mining Law”) from January 12, the Government continues to vacillate in a dilemma between implementing the export ban versus saving thousands of mining workers’ jobs that will be lost due to the policy.
These difficult circumstances are putting pressure on many mining companies, including giants such as Newmont and Freeport, which believe the policy will negatively impact on their revenue from the export of raw materials. Many mineral mining businesses could cease operations and consequently layoff workers in order to continue financially viable operations.
Natsir Mansyur, the Deputy General Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Sector Empowerment, believes that approximately 800 thousand workers will be laid off if the policy is implemented.
According to Nastir, Freeport could possibly layoff around 40 thousand workers with the number for Newmont lower at around 25 thousand workers. “These figures exclude workers that indirectly work in the mining sector such as contractors, people’s mining concession holders (Industri Pertambangan Rakyat), and holders of mining business licenses, which total around 600,” he explained.
In support of Natsir’s statement, Jero Wacik – the Minister of Energy and Mineral Resources - commented that “Implementing the Mining Law and saving many jobs are equally important”. Jero also added that many parties have informed him that the minerals mining industry will collapse if the policy is enforced.
Article 170 of the Mining Law provides that the Government has 5 years to implement the domestic processing and purification of locally mined minerals from its enactment in 2009, the basis for the fast approaching export ban.
Article 170 is further legislated under Minister of Energy and Mineral Resources Regulation No. 7 of 2012, as amended by Ministerial Regulation No. 11 of 2012 and Ministerial Regulation No. 20 of 2013 (Amendment). The 12 January 2014 deadline for the ban on the export of minerals was introduced by the Amendment.
(ds/kc)
Kartini L Makmur, Yanuar Pribadhie
Despite it being less than two weeks away with the Government required to implement its policy to ban the export of minerals under Law No.4 of 2009 (“Mining Law”) from January 12, the Government continues to vacillate in a dilemma between implementing the export ban versus saving thousands of mining workers’ jobs that will be lost due to the policy.
These difficult circumstances are putting pressure on many mining companies, including giants such as Newmont and Freeport, which believe the policy will negatively impact on their revenue from the export of raw materials. Many mineral mining businesses could cease operations and consequently layoff workers in order to continue financially viable operations.
Natsir Mansyur, the Deputy General Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Sector Empowerment, believes that approximately 800 thousand workers will be laid off if the policy is implemented.
According to Nastir, Freeport could possibly layoff around 40 thousand workers with the number for Newmont lower at around 25 thousand workers. “These figures exclude workers that indirectly work in the mining sector such as contractors, people’s mining concession holders (Industri Pertambangan Rakyat), and holders of mining business licenses, which total around 600,” he explained.
In support of Natsir’s statement, Jero Wacik – the Minister of Energy and Mineral Resources - commented that “Implementing the Mining Law and saving many jobs are equally important”. Jero also added that many parties have informed him that the minerals mining industry will collapse if the policy is enforced.
Article 170 of the Mining Law provides that the Government has 5 years to implement the domestic processing and purification of locally mined minerals from its enactment in 2009, the basis for the fast approaching export ban.
Article 170 is further legislated under Minister of Energy and Mineral Resources Regulation No. 7 of 2012, as amended by Ministerial Regulation No. 11 of 2012 and Ministerial Regulation No. 20 of 2013 (Amendment). The 12 January 2014 deadline for the ban on the export of minerals was introduced by the Amendment.
(ds/kc)
Despite it being less than two weeks away with the Government required to implement its policy to ban the export of minerals under Law No.4 of 2009 (“Mining Law”) from January 12, the Government continues to vacillate in a dilemma between implementing the export ban versus saving thousands of mining workers’ jobs that will be lost due to the policy.
These difficult circumstances are putting pressure on many mining companies, including giants such as Newmont and Freeport, which believe the policy will negatively impact on their revenue from the export of raw materials. Many mineral mining businesses could cease operations and consequently layoff workers in order to continue financially viable operations.
Natsir Mansyur, the Deputy General Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Regional Sector Empowerment, believes that approximately 800 thousand workers will be laid off if the policy is implemented.
According to Nastir, Freeport could possibly layoff around 40 thousand workers with the number for Newmont lower at around 25 thousand workers. “These figures exclude workers that indirectly work in the mining sector such as contractors, people’s mining concession holders (Industri Pertambangan Rakyat), and holders of mining business licenses, which total around 600,” he explained.
In support of Natsir’s statement, Jero Wacik – the Minister of Energy and Mineral Resources - commented that “Implementing the Mining Law and saving many jobs are equally important”. Jero also added that many parties have informed him that the minerals mining industry will collapse if the policy is enforced.
Article 170 of the Mining Law provides that the Government has 5 years to implement the domestic processing and purification of locally mined minerals from its enactment in 2009, the basis for the fast approaching export ban.
Article 170 is further legislated under Minister of Energy and Mineral Resources Regulation No. 7 of 2012, as amended by Ministerial Regulation No. 11 of 2012 and Ministerial Regulation No. 20 of 2013 (Amendment). The 12 January 2014 deadline for the ban on the export of minerals was introduced by the Amendment.
(ds/kc)