JAKARTA, KOMPAS.com – Non-governmental organization Publish What You Pay (PWYP) has suggested limiting the export volume of concentrates. PWYP Indonesia National Coordinator Maryati Abdullah is concerned that if exports are not restricted, mineral mining companies will export concentrates to the deadline for such activities.

Based on the Minister of Energy and Mineral Resources (ESDM) Regulation No. 1 of 2014, mineral mining companies are permitted to sell concentrates overseas until January 12, 2017. According to Maryati, the volume of concentrate exported should also be used as a basis for the imposition of export duty (BK) tariffs.

At present, in accordance with Regulation of the Minister of Finance (PMK) number 153 of 2014, the imposition of BK is only based on the development of mineral processing and refining facilities (smelters).

“Even if there is progress in building a smelter, the export volume must be regulated. Do not let progress just so much, but the volume of exports added. The Indonesian concentrate is finished, “Maryati said in a discussion in Jakarta, Sunday (9/25/2016).

Maryati said that PMK 153 in 2014 regulates that companies that have placed serious guarantees and achieved progress on the construction of a smelter of 7.5 percent are subject to 7.5 percent BK.

Meanwhile, companies that make progress on the construction of smelters of 7.5 percent – 30 percent are subject to BK 5 percent. While companies that achieve smelter construction above 30 percent, are not subject to BK.

“Our criticism of PMK 153 is that the conditions are only the progress of smelter construction. It should also be in volume, “Maryati said.

“Imagine if a large company is already above 30 percent of the construction of its smelter, it is not subject to BK. Even though what is being exported is millions of tons (concentrate).

For information, based on data from the Ministry of Energy and Mineral Resources as of August 2016 there were 26 smelters that had reached the stage of commissioning or production (81 percent – 100 percent progress). There are six smelters reaching the end of the construction phase (51 percent – 80 percent progress).

In Media, Media Coverage | PWYP Indonesia | September 25th, 2016