Association opposes export tax on mineral products

The Indonesian Gold and Copper Association (ATEI) opposed the government?s decision to impose export taxes on mineral products as it would harm the mining industry.

ATEI Head Natsir Mansyur said in a statement received late Wednesday that the Ministry of Finance?s latest policy of imposing the export duties on mineral products had not been consulted with the industry, and would harm the industry, which in turn could cause layoff, and other problems.

The Minister of Finance has recently issued a new regulation imposing a progressive export on certain mineral products until 2016. The export duty on copper concentrate, for example, is set at 25 percent for this year, which will increase to 35-40 percent next year, and 50-60 percent in 2016.

The new policy comes after the government started on July 12 the ban on mineral ore exports, but allowed certain concentrates such as copper, lead, zinc, iron ore, manganese, and ilminite to continue export until 2017. The new ministry of finance regulation, however, imposes export taxes on these minerals.

Editing By Reiner Simanjuntak