AP3I urges government to stop raw mineral export policy

Thursday, July 13 2017 - 03:34 AM WIB

The Indonesia Mineral Processing and Refinery Companies Association (AP3I) urged the government to drop its policy of allowing export of low grade nickel ores and washed bauxite as it has led to the current drop in the price of the commodities, prompting some domestic smelters to stop operation.

AP3I Deputy Chairman Jonatan Handojo met on Wednesday with Chairman of the Investment Coordinating Board (BKPM) Thomas Lembong to report about the negative impact of the policy to the domestic smelter industry and how it has discouraged investors in the sector from making fresh investment.

He said that the association will draft a joint letter with BKPM to be submitted to President Joko Widodo, calling for ending the mineral ore export policy. He did not say when the letter will be sent to the president.

Jonathan said that 17 domestic nickel smelters have stopped operation, undermining the efforts of BKPM in wooing investment including in the smelter industry.

The government introduced in January of this year a new regulation allowing for the export low grade nickel ores with purity of less than 1.7 percent and washed bauxite with purity of less than 42 percent under certain conditions including requirement to build domestic smelters.

Four mining firms have obtained permit to export the commodities including IDX-listed PT Aneka Tambang Tbk, PT Fajar Bhakti Lintas Nusantara, PT Ceria Nugraha Indotama, and PT Dinamika Sejahtera Mandiri. (*)

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