Relaxation Policy Not Trigger Increasing Production

Jumat, 11 Oktober 2013 | 10:06


Relaxation policy issued by the government doesn’t trigger mining business license (IUP) holders to increase production as they prefer to wait and see over the regulation in 2014.


Vice Chairman of Indonesian Mineral Entrepreneurs Association (Apemindo) Agus Suhartono said the majority of association members prefer not to boost production as risk of mineral supply hoarding. Despite, there are two influential problems if the production is increased.

“The main problems lately are unpredictable weather and weakening mineral commodity prices,” he said, Thursday (10/10).

Unpredictable weather from January-August this year is affecting mining and shipping industry. He said there’s a time that must be passed by mining industry thus its production fell.

He gave an example of declining commodity price in nickel. The shrinking market cause employers to suspend their production as current nickel market is dominated by high nickel grade 1.9%.

Related to relaxation policy, Director of Energy and Mineral Concession for the Ministry of Energy and Mineral Resources Dede Ida Suhendra said until this month, there were 30 companies submitted revised work plan and budget (WP&B) to boost export. While the government only give recommendation for it.

“We only give recommendation, while the approval from local government,” he said.

The central government will give recommendation with specified conditions. IUP holders must have clean and clear, don’t exceed study capacity and had submitted revised WP&B.

He said of 30 companies yet all checked. The government observed some companies cheated in mineral export shipment. The government suspected there are shipping companies cooperate with IUP that don’t have CnC. It’s a gap for illegal export.

“We will conduct further checks on companies that submitter revised WP&B,” he said.

In response, Agus said producer and buyer now have well educated. They know rules and export regulation. Currently, the buyers always ask to see export license to mining producers.

Therefore, there should be administration clarity between local and central government since the bureaucracy is still complicated now.

“Local and central government should have database network,” he said.

After two months the relaxation policy was issued, the government said there’s no change in mineral production. Last year production to September reached 50 million ton, while in August as many as 30 million ton due to weakening price. He also said only big companies who have long term commitment to boost export. (msw)

by Inda Marlina, Elok Ani Riani
source http://en.bisnis.com