Mineral export ban cuts govt revenue by $3-5b annually: Minister

By Bambang Atamaja

The mineral ores export ban implemented by the government on Jan. 12 would cut down government revenue by US$3 to US$5 billion per year through to 2017, a minister said.

Coordinating Minister for the Economy Hatta Rajasa said that the revenue reduction would significantly ease in 2017, when construction of domestic smelters is expected to be completed.

The government introduced the export ban to push miners to process and refine them at domestic smelters in a bid to generate greater value added from the country?s mineral commodities. But the government still allows the export of six mineral concentrates until 2017.

?We push miners to build smelters at the same time with push to boost exports,? said Hatta, referring to effort to counter the risks of the decline on trade balance.

Editing by Reiner Simanjuntak