Govt tightens mineral export watch

The government has recently stated to tighten the monitoring of mineral ore exports following the release of export tax policy on May 26.

?Mineral export monitoring was previously conducted on administrative basis only. We will now conduct a physical check to do that," said Agung Kuswandono, Director General of Customs at the Ministry of Finance.

As stated within the regulation of the Minister of Finance 75/2012, up to 65 kinds of mineral will be subjected to export tax, comprising of 21 metallic minerals, 10 non-metal minerals and 34 kinds of mineral rocks.

Head of Fiscal Policy of the Ministry of Finance Bambang Brodjonegoro is optimistic that the enforcement of export tax should contribute up to Rp13.2 trillion worth of revenue to the state, comprising of Rp940 billion from mineral ore export tax, Rp285 billion from nickel ore export tax and Rp145 billion from aluminum ore export tax.

The revenue calculation according to Bambang is far below the revenue calculation previously stated by Financial Minister Agus Martowardojo, which reached US$2 billion (Rp18 trillion). He said the calculation is based on the two year mineral ore export performance, amounting to between US$8 billion and US$10 billion.

The government targeted to book up to Rp23.2 trillion worth of revenue from export tax, up from previous target of Rp19.2 trillion.

Director General of Mineral and Coal at ESDM Thamrin Sihite stated that there are 126 companies that have submitted their upgrading proposals, the evaluation of which will take till August. Up to now, around seven companies are known to operate their own smelter in conducting mineral upgrading.(*)