KADIN asks govt to issue mine business guideline

The Idonesian Chamber of Commerce and Industry (KADIN) has asked the government to quickly issue a guideline of minerals trading as a follow-up to the issuance of the energy and mineral resources ministry?s decree No. 7/2012.

The ministerial decree, locally known as Permen ESDM No.7/2012, stipulates about raising added value of minerals through the development of downstream mining industry, and on banning the exports of minerals without being processed further to increase their value added. The regulation is considered as having hindered the performance of mineral exports and had incurred losses to the mining businessmen.

?The positive side of the ministerial regulation is that it will encourage the development of downstream industry. But it should be designed much better so that it won?t cause the performance of our mineral exports stagnant,? said KADIN Deputy Chairman on Trading, Distribtion and Logistics, Natsir Mansyur, in Jakarta on Monday.

According to him, Indonesia?s mineral exports have been stagnant since May this year until now. ?If the declining trend continues then our export target of US$230 billion this year cannot be realized,? he said.

?What we want, actually, is that the development of mining downstream industry continues while exports will not be affected,? he added.

Meanwhile, the Indonesian Nickel Association (ANI)) Chairman Shelby Ihsan Saleh said that after the nickel exports were banned all businessmen suffered losses up to Rp 6 and 7 trillions. ?The policy of banning exports of unprocessed minerals has stalled the mining industry. It is due to the fact that we?re not ready yet for such development. Our infrastructure, especially electricity, is still poor. We also hope that the government will further facilitate the process of licensing the smelters,? he said.

Editing by Benget Besalicto Tnb