Miners urged to apply for export recommendation from MEMR

By Bambang Amaja

Vice Minister of Energy and Mineral Resources, Susilo Siswoutomo, urged miners in the country to seek for export recommendation from the ministry (MEMR) as many which are eligible to carry out export have yet to do so as required by the existing regulation.

He said that mining firms PT Antam Tbk and PT Vale Indonesia Tbk have obtained the necessary export recommendation from the ministry, which will be used to obtain the export permit from the Ministry of Trade.

?There is no problem with Antam and Vale. But the other miners (have not apply for the recommendation from the ministry). That?s why I urged the other miners to quickly apply for the recommendation,? Susilo said.

The Ministry of Trade has recently issued a new regulation requiring miners to obtain export permit, which must be among other things equipped with a letter of export recommendation from the MEMR. The new regulation came after the government introduced the long-planned export ban for unprocessed mineral ores such as nickel and bauxite, but giving a grace period for six mineral concentrates including copper, allowing them to be sold overseas until 2017. The mineral concentrates, however are subject to punitive progressive export tax.

Giants PT Freeport Indonesia and PT Newmont Nusa Tenggara, which account for 97 percent of the country?s copper concentrate output, have recently expressed objection to the new regulations including tax as it moves against their contract of work. The two firms said that they would continue to discuss with the government to settle the issue, with Newmont considering legal action among of planned remedies.

The mining industry association has also protested the new export permit requirement as the process is tantamount to lengthier bureaucracy line.

Susilo said that he has no information on whether Freeport and Newmont have applied for the export recommendation with the ministry.

Editing by Reiner Simanjuntak