Association calls for elimination of ore export tax

The Association of Indonesian Mineral Entrepreneurs (Apemindo) and several local think tanks called for the abolishment of the minister of finance regulation that imposes export taxes on mineral ores.

?In order to boost ore exports, the government should eliminate export taxes on ores by removing Minister of Finance Regulation (PMK) No. 75/2012. Such a move must effectively boost ore exports which will contribute to the country?s foreign exchange earnings,? Apemindo said in a statement.

The statement was signed by Apemindo?s Chairman Poltak Sitanggang, Indonesia Mineral Resources Institute Director Agus Suhartono, Indonesia Mining and Energy Resources Director Ruddy Tjanaka, Indonesia Economic Development Studies Director Erwin Usman; Indonesia Economic Development Studies Director Tjandra Irawan, and Indonesia Mining Resources Studies Director Mahmudi Widodo.

They noted that Indonesia now urgently needs foreign exchange earnings in order to cut the current account deficit.

?The application of export tax for ores through PMK No. 75/2012 is basically in conflict with the principles in Customs Law No. 17/2006 which states the application of export tax aims to meet the domestic needs. At present, there isn?t yet any smelter (in Indonesia) which is ready for operation. As such, the ores can?t be sold on the domestic market,? the statement said.

Editing by Johannes Simbolon