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Ada Pertanyaan? Hubungi Kami Kartini L Makmur, Jazmi Adlan Bohari
As part of the plan to accelerate the establishment of mineral purification facilities in Indonesia, the Ministry of Energy and Mineral Resources (ESDM) is now planning to reduce export duties imposed on mining companies. While some may take the view that this will only benefit some foreign mining companies, Jero Wacik, the Minister of ESDM, refutes that accusation.
“It is merely to accelerate the development of mineral purification facilities, and it is in accordance with the Mining Law,” said Mr. Wacik in Jakarta on Monday.
Mr. Wacik further explained that the current export duty, which is set at 25 percent, is too high. This policy on export duty, set out in Ministry of Finance Regulation No. 6 of 2014, provides for the tariff to progressively increase every six months with the export duty potentially reaching 60 percent in 2016.
“This action is not solely to accommodate the interests of PT Freeport Indonesia. It is only logical that if a smelter is built under a guarantee and roadmap, then the export duty will decrease,” stressed Mr. Wacik.
Furthermore, Mr. Wacik added that the Government is currently formulating criteria for mining companies that may be granted an export duty reduction. This criteria includes an integrity pact, security deposit, and a precise schedule for the establishment of a smelter.
“The Ministry of Finance will regulate the criteria to determine mineral export duty. Each mineral will be calculated differently,” he said.
On the other hand, Erwin Usman, Director of Indonesia Mining and Industry Studies (IMES), said that the Government has bent to pressure from foreign companies. According to Mr. Usman, export permits have been given to PT Freeport Indonesia and PT Newmont Nusa Tenggara despite those companies not having fulfilled the necessary requirements.
“Both Freeport and Newmont have not built a smelter. In fact, they have declared that they won’t build one. This proves the Government has acquiesced to the foreign companies,” stressed Mr. Usman.
(hot/kc)
Kartini L Makmur, Jazmi Adlan Bohari
As part of the plan to accelerate the establishment of mineral purification facilities in Indonesia, the Ministry of Energy and Mineral Resources (ESDM) is now planning to reduce export duties imposed on mining companies. While some may take the view that this will only benefit some foreign mining companies, Jero Wacik, the Minister of ESDM, refutes that accusation.
“It is merely to accelerate the development of mineral purification facilities, and it is in accordance with the Mining Law,” said Mr. Wacik in Jakarta on Monday.
Mr. Wacik further explained that the current export duty, which is set at 25 percent, is too high. This policy on export duty, set out in Ministry of Finance Regulation No. 6 of 2014, provides for the tariff to progressively increase every six months with the export duty potentially reaching 60 percent in 2016.
“This action is not solely to accommodate the interests of PT Freeport Indonesia. It is only logical that if a smelter is built under a guarantee and roadmap, then the export duty will decrease,” stressed Mr. Wacik.
Furthermore, Mr. Wacik added that the Government is currently formulating criteria for mining companies that may be granted an export duty reduction. This criteria includes an integrity pact, security deposit, and a precise schedule for the establishment of a smelter.
“The Ministry of Finance will regulate the criteria to determine mineral export duty. Each mineral will be calculated differently,” he said.
On the other hand, Erwin Usman, Director of Indonesia Mining and Industry Studies (IMES), said that the Government has bent to pressure from foreign companies. According to Mr. Usman, export permits have been given to PT Freeport Indonesia and PT Newmont Nusa Tenggara despite those companies not having fulfilled the necessary requirements.
“Both Freeport and Newmont have not built a smelter. In fact, they have declared that they won’t build one. This proves the Government has acquiesced to the foreign companies,” stressed Mr. Usman.
(hot/kc)