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.
The government should be consistent in its policies to develop mining industries in the downstream areas, so that mineral raw materials, such iron and copper ores could be processed into finished goods before being exported.
According to Jonatan Handojo, deputy chairman of the Indonesian Processing and Smelting Companies Association (AP3I), the revision of the law should not change the policy on the export ban and development of mineral resources in downstream industries.
"We hope that there would be no relaxation on the export ban as we have invested in the construction of smelters. There are now at least nine smelters that are ready to operate. If the export ban is lifted, of what use will be our investment?" Jonatan was quoted as saying on the website of the Ministry of Industry.
It was reported that the government and DPR are now making preparations to process the revision of Law No. 4 of 2009 wherein several issues are being discussed, including re-allowing the export of raw minerals.
The law has, so far, banned the export of raw mineral resources. According to Minister of Energy and Mineral Resources Sudirman Said, several issues are to be discussed in the draft revision of the law.
"We are reviewing the law on mineral and coal mining. There are various issues. It covers not only mineral export but also issues concerning contract extension, downstream development, environment, and the government's permits. Mineral export is only one of those issues," the minister was quoted as saying on Monday (Feb. 22) by detikFinance online Media.
However, Chief Economic Minister Darmin Nasution was not yet available to make a statement on it.
"We have not yet spoken about it. Just wait it for later," he said.
According to lawmaker Dito Ganinduto, the reopening of raw mineral exports would create investment uncertainties and cause losses to companies, which had been developing smelters.
"The downstream industry development program is an effort to end the export of mineral ores. After all, other countries are also developing their downstream industries," he noted.
Dito, who is a senior Golkar Party politician, stated that the export of mineral ores will only benefit the importer countries, which will enjoy the benefits of their added value.
"The decline in the prices of mineral commodities should not be the reason for amending the law on coal and mineral mining, which clearly bans the export of mineral ores," he noted.
Dito regretted the government's statement that Commission VII had given its approval for the export of raw mineral resources.
"If there is a member of Commission VII who individually stated the need for reopening the export for raw minerals, the government should not take it as a reason that we, Commission VII, have institutionally agreed to the matter. A government official must be careful while giving such a statement," he remarked.
Dito was also convinced that Commission VII of the House will not urge the government to lift the ban on the export of mineral ores.
"The law can just be revised, yet it would not change the ban on the export of raw minerals," he added.
Earlier, the government had raised a discourse on the reopening of raw mineral exports on grounds that it would safeguard the mining companies and increase the state's revenues.
According to the government, the plan to reopen the exports of goods would be implemented by revising the law on mineral and coal mining during a deliberation with the DPR.
In the meantime, the Ministry of Energy and Mineral Resources has provided gold and copper mining company Freeport Indonesia PT Freeport Indonesia with a recommendation for a copper concentrate export license.
"Freeport has obtained a permit for the export of copper concentrate for a period of six months as proposed," Director General of Mineral and Coal, Ministry of Energy and Mineral Resources Bambang Gatot Ariyono stated here on Tuesday.
The ministry has granted extension for copper concentrate export permits for one million tons for the next six months in accordance with the regulations.
"The permission granted today is for one million tons in accordance with the regulation issued by the Coordinating Minister for Economic Affairs and the Ministry," he revealed.
According to Bambang, the recommendation was made as the company had responded to the requirement and was ready to pay an export duty of five percent.
"Freeport has responded to the requirement and is willing to meet the five percent export duty condition. Meanwhile, the issue of US$530 million worth of cost will be discussed later," Bambang noted.
Meanwhile, the Indonesian Young Entrepreneurs Association (HIPMI) questioned the government's policy to allow PT Freeport Indonesia to export concentrate for a period of six months.
General Chairman of HIPMI Bahlil Lahadalia said in a press statement on Thursday (Feb. 11) that the government's decision to allow PT Freeport to export concentrates could be unfair for other industries.
The HIPMI chairman further remarked that if the government has granted the license to export concentrate to Freeport since the company was facing financial difficulties, then it must also be fair to other national mining companies as they too are facing financial problems.
Several national companies are now developing smelters as stipulated in Law No. 4 of 2009 on Mineral and Coal Mining, he noted.
"If liquidity problems are the reason behind issuing the permit for concentrate export, then the government should also look at us since we are also suffering from liquidity problems. We question why Freeport should always receive preferential treatment from the energy and mineral resources minister. We really do not understand it. The government should explain it," Bahlil emphasized.***3***(A014/INE)EDITED BY INE
(T.A014/A/BESSR/A. Abdussalam) 23-02-2016 19:00:3 |
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