Mining associations back down from Kadin task force

Three mining associations have backed down from a special task force set up by the Indonesian Chamber of Commerce and Industry (Kadin) to lobby the government over the controversial export ban policy and its related regulations, reports said Friday.

The three associations include the Indonesia Mining Association (IMA), the Indonesian Mineral Entrepreneurs Association (Apemindo), and the Indonesian Bauxite and Iron Ore Association (APB3I).

IMA Executive Director Syahrir AB said the associations have been disappointed with the Kadin task force for failing to lobby and submit the suggestions proposed by the associations to the government and the House of Representatives Commission VII overseeing the energy and mining sector, leading to the export ban of bauxite and nickel ores, and the punitive progressive export on mineral concentrates.

The government introduced on January 12 the long planned export ban on mineral ores, forcing miners to develop domestic smelters to process and refine the ores before export in a bid to generate greater value added from the commodities. But the government still allows six so-called mineral concentrates including copper to be exported until 2017 by paying the export tax, which has been protested by the concentrate producers. (*)