- The Government is currently deliberating a number of policies aimed at increasing the value of minerals. At least three main policy areas are being deliberated: 1) The construction of smelters and the resilience of mineral reserves; 2) The readiness of domestic industry to utilize products produced by smelters; and 3) The potential future market prospects for downstream mineral products.
- However, according to Deputy Assistant for Extractive Industries at the Coordinating Ministry of Economic Affairs, Bastian Halim, businesses are facing a number of difficulties in terms of the construction of smelters, including difficulties which involve land conversions and overlapping permits in relation to Mining Permits (“IUP”) and Industry Permits (“IUI”). As a result, the government is being urged to provide more fiscal and/or non-fiscal incentives in order to encourage the construction of smelters.
- The government is also being advised to take the mandatory construction of smelters more seriously as a whole decade has now passed since the issuance of the Law on Minerals and Coal while the obligation to build smelters still remains vague. The government is thus being encouraged to take a firmer hand and to levy sanctions upon relevant parties who do not construct smelters as mandated.
- For more on this story, see Hukumonline: “3 Isu Terkait Arah Kebijakan Peningkatan Nilai Tambah Mineral”.
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