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Finance Ministry to Issue Bill on Concentrate Export Duty

TEMPO.COJakarta - Finance Minister Sri Mulyani Indrawati said that she would review the Energy and Mineral Resources Minister’s Regulation requiring concentrate exporters to pay a 10-percent export duty as a compensation of smelter development commitment.

“We will study about the move made by the Energy and Mineral Resources Minister. And then we will issue a Finance Minister’s Regulation, since the Custom and Excise Directorate General will handle it,” Sri Mulyani said at the Coordinating Economic Ministry in Jakarta on Friday, January 13, 2017.

Earlier, the government issued Government Regulation No. 1/2017, and its derivative bill Energy and Mineral Resources Minister’s Regulation No. 5/2017 was signed. The regulation issued on Thursday, January 12, 2017, was the fourth revision to the regulation on mineral and coal mining businesses.

The regulation contains a provision related to the extension of the export period for work contract holders for the next five years. However, the contract holders must obtain a special mining business license or IUPK and build a smelter in order to be able to export concentrates.

In addition, concentrate exporters are required to pay a 10-percent export duty based on the progress of their smelter developments. However, Energy and Mineral Resources Minister Ignasius Jonan said that provisions on the export duty would be set forth in a Finance Minister Regulation.

ANGELINA ANJAR SAWITRI