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Wednesday, 18 April 12
INDONESIA TO INTRODUCE EXPORT DUTY ON MINERAL ORES BY 6 MAY 2012


The Indonesian government is scheduled to issue regulation on export duty for minerals before May 6, 2012.

According to Bisnis Indonesia, as quoted by Thamrin Sihite, director general for mineral and coal, saying the policy is being finalized by various government agencies. Finance ministry, Trade ministry along with the Energy ministry is finalizing the new regulation.

"It is not an export tax, but export duty. The level of export duty, however, has yet to be decided," Thamrin said, according to Bisnis Indonesia. Some suggested 15%, others 25% and 50% export duty for minerals like nickel ore, bauxite ore, copper concentrate, etc.

The policy, will help to curb export of mineral ores. Fiscal Policy Board of Ministry of Finance also planning to  utilize  the funds collected from the export duty to use to build smelters.

Miners could still export unprocessed mineral ores until 12 January 2014,  but they will be charged with export duty until a full-fledge ban on unprocessed mineral ore export.

"There were indications that the government is considering applying an export duty for coal only to low-calorie fuel, with a heating value of under 5,700 kcal/kg", industry players said. Coal export duty or tax also expecting to be introduced any time this year.

However the export duty or tax,  which the government is planning to introduce to mineral and coal may applicable only for non CoW and CCoW holders as those contract holders were protected from any new rule changes in the sector.



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