Minerals extracted from the earth shall be managed for communities’ benefit and welfare. Indonesia constitution of 1945 has affirmed that mandate. Therefore, exporting mineral ore which has not been processed and refined is acts of betrayal of the ideals of natural resources management.

On the other hand, if the mineral ore are being processed and refined domestically, we could imagine how many labors absorbed by the industry, how many households can be benefited, how much additional income for the labors, how it can generate rapid growth for the industry involved, and also taxes from this growing economic chain? Do we still willingly sacrifice our mother land just to obtain quick money from the ore mineral export?

Study conducted by Data and Information Center, MEMR (2012) showed an increase of 10.23 times if bauxite are processed into alumina, given US$ 29 per ton of bauxite price and US$ 274 per ton of alumina price in 2011. If alumina are processed further into aluminum, the selling price reach US$ 3,822 per ton, 139.23 times higher than bauxite price.

LPEM of University of Indonesia study confirmed that smelter development for processing and refining of bauxite in West Kalimantan can increase employment opportunities for local communities. Without smelter, 10 mining workers can generate employment opportunity for around 14 people in West Kalimantan. While with smelter, 10 mining workers can generate employment opportunities for around 19 people in West Kalimantan.

How the Law Regulate This?

2009 Mining Law, article 102 and 103 stipulated the processing and refining obligation in the domestic. Article 170 in this law requires the Contract of Work holders which have been in the production phase, such as Freeport Indonesia, Newmont Nusa Tenggara, and etc., to refine mineral ore no later than 5 years after the enactment of the law, which is in 2014.

Along with this policy, government issued mineral export ban in 2012 through Minister Regulation (Permen) ESDM No. 7/2012 to encourage development in the downstream sector. However, further policies issued implied government inconsistency. For instance, Permen ESDM No. 20/2013 which allows mineral ore export until January 2014 and Permen ESDM No. 1/2014 which then allows concentrate being exported up to January 2017. Now, the government again may ease the export ban.

In 2014, APEMINDO and other mineral companies proposed law examination for articles 102 and 103 of Mining Law. But Constitutional Court decision number 10/PUU-XII/2014 rejected its request. According to Constitutional Court, excuse about massive work termination will not happen if the companies have strong commitment in processing and refining the minerals with develop smelters or cooperate with other companies who have smelter.

Are we willing to let our mother land being over exploited for momentarily economic interest? Thus, we are calling President Joko Widodo and the Minister of Mineral and Energy Resources to:

Decline every policy that easing mineral ore export!

This is because:
(1) Mineral ore export contradicts with Indonesia constitution that mandates to utilize soil, water, and natural resources that contained therein, for prosperity of the people.

(2) Export triggers massive and irresponsible exploitation of mining. It’s proven with the increase of mining permits from 9,662 IUP to 10,066 IUP during 2011 to 2016. While 3,682 of them are non-clear and clean; 6.3 million hectares of mining are operated in the protection and conservation forest; 24% companies didn’t have tax ID number (2010-2012); 75% of companies didn’t pay reclamation and post mining fund; companies haven’t pay tax and non-tax revenue amounted up to 23 trillion rupiah (2016).

(3) Easing of mineral export has triggered over exploitation that’s impacted to environmental damage. It’s not only due to unlicensed mining activity, also from licensed mining activity that operated outside its permitted area.

(4) Easing of raw mineral export in one hand and smelter development obligation in another hand has generated law uncertainty. Inconsistency of policy and lack of coordination among ministries (Ministry of Energy and Mineral Resources and Ministry of industry in handling the smelter industry licenses) – has hampered the smelter development.

(5) Lifting concentrate and raw mineral export ban can disrupt the process of mining licenses governance in Indonesia that has been initiated by KPK, MEMR, local governments, and related institutions.

(6) Once again, easing the concentrate export will bring Indonesia back to an exploitative economic activity in the colonial era, where natural resources just seen merely as a commodity. No added value for national economy and people welfare.

Sing on this petition by click: http://bit.ly/2iZo6MR