Minister claims miners OK with 20 % export tax
Thursday, May 10 2012 - 01:45 AM WIB
Energy Minister Jero Wacik claimed that the country?s miners agreed with the government policy imposing 20 percent export duty on 14 mineral ores starting May 6.
?I have got many inputs from miners that they are OK with the 20 percent export duty. They remain profitable though the profit slightly decrease,? Minister Jero told Petromindo.com.
The government started banning the shipping of the unprocessed mining products to overseas starting May 6 unless miners commit to build smelters in the country, and they should pay 20 percent export tax.
Jero made the statement following some complaints from Indonesian employers association that the new rule could decrease profit that could lead to layoffs.
Jero said that the government had discussed the percentage of export duty with miners and include their opinion on the decision making process.
?It is not true that the policy (ministerial decree number 7/2012) did not heed the aspiration of miners in the making process of the policy. I have met with officials from Kadin (Indonesian Chambers of Commerce and industry) and discussed it with them,? Jero said.
Minister Jero said that the miners understood the government decision after being explained the real goal of the export restriction.
Editing by Adianto P. Simamora