Government Starts Export Ban Threshold Discussion

Senin, 12 Agustus 2013 | 14:14

The government is preparing a revision of the amount of mineral level that cannot be exported in the appendix of Ministerial Regulation No.7/2012.Thamrin Sihite, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, said the level revision is an export requirement but not for unprocessed raw materials. Such threshold is closely related to the procurement of smelters.

"For instance, the mineral level threshold stated n the appendix [Ministerial Regulation No.7] is at 99%. That means it can be exported after it’s processed in the country," he said in Jakarta last weekend.

Domestically, the mining company could sell the raw material regardless of its levels and does not need to be purified again. The government’s revised level will depend on mining commodities. Sihite added that the revision will organize the components of the mineral to be processed in the country.

Meanwhile, the Ministry of Energy and Mineral Resources (EMR) will not revise the Regulation No.4/2009 in the export settings. The export ban is not negotiable. In the appendix is written that 14 metal mineral commodities were revised. Then, there are 8 non-metal minerals that are also being revised. Changes in the levels also consider the components and byproducts that can be processed in the country.

Examples of commodities that will be revised are zirconium and zeolite. As was reported earlier, the government would reduce 20% from ongoing exports. Currently, the government is awaiting the decision from the Ministry of Finance.

According to the Director of the Mineral Development and Concession for EMR Ministry Dede Ida Suhendra, if anyone is selling 100% of zeolite level, it might as well selling the country.

Responding to the revision on level, the Secretary General of the Indonesian Zirconium Mining Association Sihol Manullang said the revision reverts the zirconium level restriction back before Regulation No.7/2012 or No.12/2012 is enacted. As it will revert the duty-free regulation for zirconium oxide 65.5% with 60 mess fineness.

In fact, before the regulation enacted, the mining companies have exported the commodities with such high level.

Related with the export ban, the government is still evaluating the 23 smelters which are likely to be built next year. They formed a team of stakeholders, universities, including the bureaucracy. The evaluation includes a feasibility study and environmental impact assessment (EIA) clearance.

The company building a smelter or a consortium with other companies to build processing plants can export raw materials or concentrates as long as the economic security exists. Sihite said the consideration depends on the investment and the smelter construction time span.

The government scheduled a field review after a long holiday of Eid and is expected to be completed within 1.5 months. (T07/aph/tw)

by Inda Marlina, Aprianto Cahyo Nugroho