MEMR proposes mineral export duties to be lower than 10%
Tuesday, April 29 2014 - 01:17 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) will propose to the Ministry of Finance to cut down the export duties on mineral concentrates to below 10 percent.
Dede I. Suhendra, Director of Mineral Business Development and Management at MEMR, said that under the proposed export tax revision, the export duties would be cut down to 7.5 percent this year, 5 percent next year, and zero percent in the following year.
He quickly added, however, that only companies showing serious progress with the requirement to build domestic smelters will be eligible to get the export tax reduction.
The Ministry of Finance imposed a punitive export tax of between 20-60 percent for mineral concentrates earlier this year as part of efforts to force miners to build domestic smelters by 2017, when the concentrates will be banned from export. Miners including copper giants PT Freeport Indonesia and PT Newmont Nusa Tenggara have protested the punitive export tax rate.
The two companies have yet to resume export since the introduction of the export tax policy and tighter export restrictions.
Editing by Reiner Simanjuntak