Tax on mining exports aim to encourage downstream industry: Hatta

Kamis, 19 April 2012 | 11:14


Coordinating Minister for Economic Affairs Hatta Rajasa said the government`s plan to raise taxes on raw mining exports is aimed at developing the downstream mining industry."The policy will encourage companies not to export raw materials so they will process them at home," he said here on Wednesday.

The plan is designed to ensure that the management of natural resources in the country could be handled in a responsible way and find a just amount of royalties for mining materials, he said.

"There are many reasons--we must be more responsible for the management of our natural resources. By doing so, they will feel encouraged to develop downstream industries soon and the principles of justice can be ensured," he said.

Hatta said the policy will not apply to mining companies which have signed work contracts and are under the government`s ownership, such as PT Newmont, because the company has built a smelter to process mining materials in Indonesia.

He added, however, that the government was still undecided about the proposal to impose an export tax on mining products.

"It is still being discussed. Nobody has said whether it will reach 15 percent or 50 percent," he added.(*)

Source http://www.antaranews.com