RESOURCE NATIONALISM: Indonesia will implement mineral ore export ban, taxes from May 6

Indonesia is set to implement a mineral ore export ban and impose taxes starting May 6, a senior government official told Metal Bulletin.

“There is no change in our plan. All producers that have no processing plans will be banned from exporting [ore] from Sunday, May 6,” Dede I Suhendra, director of mineral, coal and geothermal resources in the energy and mineral resources ministry, said. Producers that have submitted their processing plans and meet government criteria for value-added processing will be allowed to continue exporting. “Producers that are allowed to continue exporting will also have to pay export taxes on ore shipment,” Suhendra said. Suhendra declined to give details on the number of companies that will be allowed to continue exporting ahead of the official announcement, expected Friday afternoon Jakarta time. Sources believe that ore export taxes will likely result in higher prices as supply falls.  Miners who meet the criteria to export will face a tax of 20%, according to Harya Adityawarman,...

Published

Megawati Wijaya

May 04, 2012

07:31 GMT

Singapore