Worry over possible layoff hits RI mining sector

By Bambang Atmaja

Indonesian Labor and Transmigration Minister Muhaimin Iskandar admitted that the possibility of big layoffs are worrying workers in the country's mining sector as the export restriction policy for 65 raw mining products has hampered operations of many mines. ?There are worries on possible big layoffs,? Muhaimin told Petromindo.com at the State Palace on Wednesday.

Many miners have complained about costs of operation as they could not ship their unprocessed mining product overseas.

Indonesian Energy and Mineral Resources has warned miners about the prohibition of laying off workers unilaterally. ?As of today there is no significant risk, of layoff for instance,? he assured.

In May this year, the government issued a controversial ban on the export of unprocessed mining products, leaving no other options for miners but to upgrade their ores. However, the government has since opened its doors to accept miners' proposal to be allowed to export their products before the total ban implementation in 2014. Contents of the proposal revolve around their willingness to invest in smelters and pay a-20 percent export tax ahead of the 2014 total ban.

Editing by Er Audy Zandri