Kadin appeals for transition period before mineral export ban is implemented

By Hiski Darmayana

The Indonesian Chamber of Commerce and Industry, or Kadin, a powerful business lobby, appealed to the government to provide a four-year transition period for miners before the planned export ban on mineral ores is fully implemented.

Kadin Vice Chairman for Mineral Resources, Boy Garibaldi Tohir said that during the transition period, miners showing commitment to develop domestic smelters, must be allowed to continue export mineral ores next year until their planned smelters have been completed.

?We appeal to the government to provide a four-year transition period,? he told Petromindo.com Tuesday.

Boy, who is also President Director of IDX-listed coal giant PT Adaro Energy Tbk, said that there a number of problems which have hampered the development of the planned domestic smelters including the lack of electricity supply in the country and other related infrastructure facilities.

He added that if the planned export ban is fully implemented next year, while the smelters are not yet ready, it is feared to caused serious economic consequences to the country.

The government, as mandated by the 2009 mining law, plans to ban the export of mineral ores starting 2014, requiring miners to process and refine the ores first at domestic smelters in a bid to generate greater added value from the mining commodities.

Editing by Reiner Simanjuntak