Govt to receive Rp 18 trillion from export tax on mineral ores

Finance Minister Agus Martowardojo predicted that imposing 20 percent export tax on 14 mineral ores would give an extra income of about US$2 billion (Rp 18 trillion) to the government.

Agus made the assumption based on the performance of mineral exports of between $8 and $10 billion a year in the last two years.

The government finally imposed export tax on average of 20 percent rather than totally ban the export of mineral ores starting May 6. The mining companies are required to first get permit from Trade Ministry to allow them exporting the mineral ores. Such permit could be awarded after the miners receive recommendation letter from the energy and mineral resources ministry.

The miners should present concrete plan to build the processing and refinery in order to fulfill the 2009 Mining Law obliging the miners to process mineral ores before being exported by 2014.

Agus as quoted by Koran Tempo said that a special team at the finance ministry was still formulating the regulation on export tariff.(*)