APB3I reiterates calls on government to relax export ban policy

The Indonesian Bauxite and Iron Ores Entrepreneurs Association (also known as APB3I) reiterated calls on the government to lift the current export ban on the commodities. The demand was made as the government reportedly plans to soon relax the export ban policy on mineral products.

APB3I said in a statement obtained Thursday that allowing miners to export bauxite ores would help revive the bauxite mining sector, which it describes as currently in a dormant state, providing income for the miners to help finance the development of domestic smelter as mandated by the mining law.

It would also be beneficial for the country as the export of bauxite ores could potentially generate about Rp 18 trillion per year of export revenue in addition to income for the state from taxes and export duty estimated at Rp 6.7 trillion.

APB3I said that those opposing plan to lift the export ban on bauxite ores are not from the domestic smelter industry, but those serving the interest of foreign investors having long-term plan of gradually controlling the Indonesian mineral sector. The association said that not all bauxite ores output can be absorbed by the local alumina smelters.

The previous government introduced in early 2014 an export ban policy on mineral products in a bid to push for the development of domestic smelters as mandated by the 2009 Mining Law. The government at the time, however, allowed the export of mineral concentrates for a limited period until January 12, 2017 to give extra time for the miners to complete the required domestic smelters.

But as companies such as the giant PT Freeport Indonesia have yet to complete the smelters, the government is now planning to ease the export ban policy. It remains unclear whether the planned relaxation of the export ban policy would only affect mineral concentrates or also include ores such as bauxite.

Editing by Reiner Simanjuntak