WHEN WILL MINERAL ORE EXPORTS BE TOTALLY BANNED?

by Andi Abdussalam

Jakarta, Jan 19 (Antara) - Indonesia has, for years, borne witness to the disadvantageous exploitation of its rich mineral resources, losing added values as mining companies simply tapped them and exported mineral ores in raw material form.          Virtually, the government had contemplated on stopping the export of raw minerals about a decade ago, but it could not do it all at once, as mining companies need time to build smelters to process and extract minerals before exporting it.          Hence, the government gave mining companies a deadline until January 2014 to prepare smelters after which raw mineral exports would be banned. However, by January 2014, the government again pushed back the export ban to January 2017.          This time around, mining companies are yet not ready with their smelters. It seems the government has once again relaxed the country's mineral ore exports as it had done in January 2014.          Through the newly introduced Government Regulation (PP) No. 1 of 2017, mining companies were urged to change their contract of work status to a special mining license (IUPK) to allow them to export raw minerals.          Moreover, the government is in the process of issuing a regulation on the exit tax rate for the exportation of raw minerals. These two steps, the IUPK and plan to issue a regulation on export tax, indicated the government's decision to grant more time for the export of raw minerals.

GOVERNMENT THREATENS TO REVOKE PERMITS OF MINING COMPANIES

By Andi Abdussalam

Jakarta, Jan 14 (Antara) - Mining companies have, so far, benefited from exploiting and exporting Indonesia's mineral ores without processing it at home, thereby causing losses to the nation.          Hence, in 2009, the government had taken a decision to ban the export of raw minerals and made it mandatory for mining companies to build smelters. It decided to ban the export of unprocessed mineral ores as of January 2014 in a bid to encourage miners to process ore domestically.          However, after protest from the industry, the implementation of the ban was pushed back to January 11, 2017, to give an opportunity to mining companies to build smelters.          The government has currently issued an ultimatum to miners who have yet to build smelters. Energy and Mineral Resources (ESDM) Minister Ignasius Jonan affirmed that he will revoke the concentrate export permits of companies that delayed the construction of their smelters.          "They have to build smelters if they want to export concentrates. They have to at least promise to build the smelters in five years, with a stamped statement, or else I will revoke their permits," Jonan stated at the ESDM ministry building in Jakarta on Thursday (January 12).

GOVT LIKELY TO STOP EXPORTS OF UNPROCESSED NICKEL ORES

By Andi Abdussalam

Jakarta, Oct 13 (Antara) - The government is unlikely to resume its export relaxation policy for unprocessed bauxite and nickel ores after revising regulations governing mineral and coal mining activities.          "This has not yet been decided, but it is almost certain that we will not give export relaxation for nickel and bauxite ores. I want a further study," acting Minister of Energy and Mineral Resources Luhut Binsar Pandjaitan said in Jakarta on Wednesday.          Based on Law No. 4 of 2009 on Mining, the government banned the export of unprocessed mineral ores as of January 2004. However, the implementation of the ban was pushed back to January 11, 2017, to give a chance to mining companies to build smelters at home.          The export relaxation on mineral ores was contained in Government Regulation (PP) No. 1 of 2014. Now the government is drafting a revision of PP No. 1 of 2014. Many parties have expressed concern about the government's intention of resuming its export relaxation for all mineral ores.          Mines Advocate Network (Jatam) argued that export relaxation of mineral ores will deplete the country's mineral ore reserves in various regions. "Export relaxation of mineral ores will cause the state and people to lose a chance to get added value from the development of smelters," Jatam Coordinator Merah Johansyah Ismail said on Wednesday.

GOVERNMENT URGED TO MAINTAIN BAN ON MINERAL ORE EXPORT

by Andi Abdussalam

Jakarta, Feb 23 (Antara) - A legislator and businesses engaged in the development of smelters have urged the government to maintain its ban on mineral ore export, so that the country's raw minerals will have added value.          "It is a setback if the government reopens the opportunity for the export of raw minerals," Dito Ganinduto, a member of Commission VII on energy affairs of the House of Representatives (DPR), stated on Sunday.          Dito said that based on Law No. 4 of 2009 on Mineral and Coal Mining, the ban on the export of raw minerals was a program being carried out to ensure the development of downstream mineral industries in a bid to increase the added value of resources, which will ultimately boost the nation's economy.          Companies that are serious about developing smelters have also called on the government and the DPR to consistently maintain the export ban while revising Law No. 4 of 2009 on Mineral and Coal Mining.

CONTRACTS OF ALL MINING FIRMS TO BE AMENDED

By Andi Abdussalam
Jakarta, March 8 (Antara) - The government has set a target to finish amending all contracts of mining companies before October this year, as part of its efforts to comply with Law No. 4/2009 which bans mineral ore exports.          Law No.4/2009 bans raw mineral exports as of January 12, 2014, resulting in companies in the mining business  --both mineral mining and coal mining and which export raw minerals-- must amend their contracts due to the law.         "All companies holding mineral mining permits (KK) and coal-contract of work licenses (PKP2B) should have signed contract amendment agreements before the end of President Susilo Bambang Yudhoyono's administration term in October," Minister of Energy and Mineral Resources Jero Wacik stated on Friday.          Jero Wacik said all 112 holders of KK and PKP2B permits  are expected to sign contract amendment agreements before October as part of the efforts to implement the law.          Under the law, mining companies are required to process minerals inside the country before exporting them.  "Based on the law, we are no longer allowed to export (raw minerals) as of January 12, 2014. We should consistently abide by it," Coordinating Minister for Economic Affairs Hatta Rajasa noted recently.          According to a director for technical and environment affairs at the Ministry of Energy and Mineral Resources, the government has given mining firms five years to develop factories or smelters to process or refine ore. Yet many mining firms had not begun operating smelters within that period.

RI MUST ACCELERATE MINERAL SMELTERS' DEVELOPMENT

By Andi Abdussalam
Jakarta, Dec 7 (Antara) - Indonesia must quicken the development of its mineral smelters so that reduced revenues from mineral ore exports will not be ongoing following the ban on exports of raw minerals, which begins next month.          "The Indonesian Chamber of Commerce and Industry (Kadin) hopes that the development of smelters in the country will be accelerated for the interest of the nation," Kadin Deputy Chairman for Regional Empowerment Natsir Mansur said.          The Indonesian government will implement Law No.4/2009 on Mineral and Coal Development, which will ban the export of raw minerals beginning January 12, 2014. Under the law, mining companies are required to process minerals inside the country before exporting them.          "Based on the law, we are no longer allowed to export (raw minerals) as of January 12, 2014. We should consistently abide by it," Coordinating Minister for Economic Affairs Hatta Rajasa said on Thursday.

INDONESIA TO BAN MINERAL ORE EXPORTS

By Andi Abdussalam

Jakarta, Nov 28 (Antara) - Indonesia plans to ban exports of raw minerals early next year and develop smelters of its own to increase the production of higher-value products from its minerals and metals industry.          But metal and mining companies have warned the government of potential losses if it bans mineral ore exports while the development of smelters at home is still ongoing.         "In principle, it will be difficult to stop exporting minerals as of January 2014 as the smelters under construction will not be operational until next year," Executive Director of the Indonesian Mining Association (IMA) Syahrir Abubakar said at the 13th ASEAN Senior Official Meeting (ASSOM) in Bali on Tuesday.          He noted that the government should be cautious about issuing a ban on mineral ore exports next year because it could lose billions of US dollars in state revenues. The ban will severely affect several regions across the country, he added.          According to IMA data, the government could lose nearly 45 percent of state revenues arising from taxes and royalties paid by two foreign mining companies, Freeport and Newmont.          Under Law No. 4 /2009 on Mineral and Coal Development, mining companies are required to process minerals in the country before exporting them. The law, which comes into effect next year, bans the export of raw minerals from January.          Producers, therefore, have to either build their own smelters or process the minerals at smelters owned by other companies.