Realized investment in domestic smelter reaches $6b
Saturday, January 4 2014 - 02:24 AM WIB
Director General of Coal and Mineral R. Sukhyar said that of the total US$17.4 billion investment plans in domestic smelters to process mineral ores, only about $6 billion has been realized so far.
?Of the $17.4 billion investment commitment, the realization is $6 billion at present,? Sukhyar said Friday.
The government plans to ban the export of mineral ores starting January 12 as mandated by the 2009 Mining Law, pushing miners or investors to build domestic smelters in a bid to generate greater value added for the country.
Elsewhere, Sukhyar acknowledged that the export ban would cut down the government?s revenue from the mining sector this year, but would bode well for the state coffer in the long term.
?There will be a decline in revenue and production (of ores). The revenue this year is expected to be down to about $6 billion from $11 billion last year, with the assumption there is no export of ores and concentrate. In 2015 the revenue may rise to $9 billion and $25 billion in 2016,? he said.
The official said that the country?s non-tax revenue (PNBP) in 2013 grew by 38 percent to Rp33.1 trillion and for this year it was expected to jump to Rp39.6 trillion.
Editing by Reiner Simanjuntak