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Ada Pertanyaan? Hubungi Kami Christina Desy, Kartini Laras Makmur
Due to a lack of comprehensive and functional laws and regulations, Indonesia’s natural resources sector is generally under-managed and as a result creating opportunities for certain parties to take unfair advantage of this situation. The results is gross social injustice, with the benefit of Indonesia’s natural resources being enjoyed by a select few, while the majority of Indonesians suffer from the consequent financial and environmental losses.
Marwan Batubara, Executive Director of Indonesia Resource Studies, has highlighted the government’s ignorance and general ambivalence towards this situation. In particular, the Mr. Batubara singles out Indonesia’s tin sector and its management as problematic.
As an example, lackluster supervision has caused the country tremendous losses with tin being rampantly smuggled to other countries, instead of being exported legally and generating revenue for Indonesia.
“Even worse, the related laws and regulations do not support a resolution of this problem,” said Mr. Batubara.
Mr. Batubara further explained that Minister of Trade Regulation No. 44 of 2014 on Tin Export Provisions, for example, includes some provisions that may implicitly lead to illegal export practices. Mr. Batubara did not, however, provide further specific details of which provisions he was referring to.
Mr. Batubara further added that current regulations burdes small-scale tin exporters by imposing a requirement to secure a Registered Tin Exporter License (Izin Eksportir Terdaftar Timah), without specifying clear and precise provisions on how to obtain this license.
On the other hand, large-scale tin bar exporters have an unfair advantage by being exempted from the obligation to pay 10 percent Value-Added Tax and are only subject to with a 3 percent royalty fee. Given this imbalance, there is a high urgency for this regulation to be revised before it comes into force in next month.
Sharing Mr. Batubara’s View, R. Sukhyar, Director General of Minerals and Coal at the Ministry of Minerals and Natural Resources (Ministry), also believes that high tin production must be supported with proper management. To do so, Mr. Sukhyar believes it is necessary to put some limits on tin production.
Given that Indonesia supplies between 70 to 80 percent of the world’s tin, Mr. Sukhyar’s believes that by limiting the production, Indonesia can better control tin prices in national and international markets and generate higher profits. On this basis, the Ministry aims to reduce Indonesia’s tin production from 90 thousand tons in 2014, to 35 or 40 thousand tons in 2015.
According to Mr. Sukhyar, these tin trade management problems also arise due to issues related to decentralization. The administration of registered tin exporter licenses, for example, is in the hands of regional governments meaning the central government is limited in its ability to supervise the tin sector.
In response, the Ministry plans to re-regulate the procedure to obtain the license and mandate that registered-exporter recommendations must be issued by the provincial government and legalized by the central government.
In addition, Budi Santoso, Chairman of the Committee for National Polices on Minerals and Coal, also suggested the government maintain the single-window policy to deal with the issues associated with the tin trade management.
(hot/kc)
Christina Desy, Kartini Laras Makmur
Due to a lack of comprehensive and functional laws and regulations, Indonesia’s natural resources sector is generally under-managed and as a result creating opportunities for certain parties to take unfair advantage of this situation. The results is gross social injustice, with the benefit of Indonesia’s natural resources being enjoyed by a select few, while the majority of Indonesians suffer from the consequent financial and environmental losses.
Marwan Batubara, Executive Director of Indonesia Resource Studies, has highlighted the government’s ignorance and general ambivalence towards this situation. In particular, the Mr. Batubara singles out Indonesia’s tin sector and its management as problematic.
As an example, lackluster supervision has caused the country tremendous losses with tin being rampantly smuggled to other countries, instead of being exported legally and generating revenue for Indonesia.
“Even worse, the related laws and regulations do not support a resolution of this problem,” said Mr. Batubara.
Mr. Batubara further explained that Minister of Trade Regulation No. 44 of 2014 on Tin Export Provisions, for example, includes some provisions that may implicitly lead to illegal export practices. Mr. Batubara did not, however, provide further specific details of which provisions he was referring to.
Mr. Batubara further added that current regulations burdes small-scale tin exporters by imposing a requirement to secure a Registered Tin Exporter License (Izin Eksportir Terdaftar Timah), without specifying clear and precise provisions on how to obtain this license.
On the other hand, large-scale tin bar exporters have an unfair advantage by being exempted from the obligation to pay 10 percent Value-Added Tax and are only subject to with a 3 percent royalty fee. Given this imbalance, there is a high urgency for this regulation to be revised before it comes into force in next month.
Sharing Mr. Batubara’s View, R. Sukhyar, Director General of Minerals and Coal at the Ministry of Minerals and Natural Resources (Ministry), also believes that high tin production must be supported with proper management. To do so, Mr. Sukhyar believes it is necessary to put some limits on tin production.
Given that Indonesia supplies between 70 to 80 percent of the world’s tin, Mr. Sukhyar’s believes that by limiting the production, Indonesia can better control tin prices in national and international markets and generate higher profits. On this basis, the Ministry aims to reduce Indonesia’s tin production from 90 thousand tons in 2014, to 35 or 40 thousand tons in 2015.
According to Mr. Sukhyar, these tin trade management problems also arise due to issues related to decentralization. The administration of registered tin exporter licenses, for example, is in the hands of regional governments meaning the central government is limited in its ability to supervise the tin sector.
In response, the Ministry plans to re-regulate the procedure to obtain the license and mandate that registered-exporter recommendations must be issued by the provincial government and legalized by the central government.
In addition, Budi Santoso, Chairman of the Committee for National Polices on Minerals and Coal, also suggested the government maintain the single-window policy to deal with the issues associated with the tin trade management.
(hot/kc)