Update: Govt decides 20% export tax on mineral ores

By Adianto P. Simamora

Minister of Energy and Mineral Resources Jero Wacik announced on Wednesday that the government has decided to impose an average 20 percent export tax on mineral ores starting May 6.

The announcement was made in a press conference at Presidential Palace after a cabinet meeting chaired by President Susilo Bambang Yudhoyono.

Coordinating Minister for Economy Hatta Radjasa accompanied Jero for the press conference.

Minister Jero said that the policy actually bans the export of 14 metal ores, but the miners may still ship the unprocessed mining products with an export tax of about 20 percent on condition that they are committed to build smelters in Indonesia, and fully meet their other obligations, such as on taxes and environment preservation.

?Under the ministerial decree number 7, starting on May 6, it is not allowed to export metal ores, unless the exporter propose a plan to build a smelter. An average of 20 percent export tax will be imposed on the 14 metal ores,? said Jero.

For a small firm which is unable to build a smelter by itself, the minister said that it could join forces with one or more other firms to construct the required smelter / processing facility

?Miner should stay calm. They may export but please propose a plan to set up a smelter immediately. The government will not simply stop operation of a firm,? said Jero.

On environment obligation, minister Jero said that a government team would check the firm action plan on the sector.

Editing by David Mustakim