JAKARTA—The government insisted will apply progressive export duty for mineral exports although the employers protest because it’s considered violate the contract work terms.
Deputy Finance Minister Bambang P.S. Brodjonegoro said progressive export duty of 20% -60% by 2016 is a disincentive for mining sector businesses that are reluctant to conduct refining activity.
“It’s a government’s decision. Amendment plan (Finance Minister Regulations which set out the mineral export duty) does not mean terminate export duty and that even if there is a revision,” he said, Friday (1/24).
Last week, mining employers protested over the imposition of the progressive export duty which regulate in Finance Minister Regulation (PMK) O No.6 / PMK.011 / 2014 on Second Amendment PMK No. 75 / PMK.011 / 2012 of Imposed Export Duty and Export Duty Tariff.
The objection based on lack of duty clause in the contract of work (COW). The Law No. 25/2007 regarding Foreign Investment Law No. 11/1967 on Mining Provision and PP No. 75/2001 on the Implementation of Law No. 11/1967.
Furthermore, the Indonesian Mineral Entrepreneur Association (Apemindo) intended to submit reconsideration of the beleid to the Supreme Court. They also refused to discuss mineral benchmark price, which will become benchmark reference prices for export duty.
“We are still open the dialogue. However, the government stick to the PP No.1/2004 and relevant ministerial regulation, including PMK,” he said.
On the other hand, Indonesian largest copper mining company PT Freeport Indonesia came to Finance Ministry. Unfortunately, President Director of PT Freeport Indonesia Rozik Boedioro Soetjipto was reluctant to disclose about the purpose of his arrival.
Furthermore, the Indonesian Mineral Entrepreneur Association (Apemindo) intended to submit reconsideration of the beleid to the Supreme Court. They also refused to discuss mineral benchmark price, which will become benchmark reference prices for export duty.
“We are still open the dialogue. However, the government stick to the PP No.1/2004 and relevant ministerial regulation, including PMK,” he said.
On the other hand, Indonesian largest copper mining company PT Freeport Indonesia came to Finance Ministry. Unfortunately, President Director of PT Freeport Indonesia Rozik Boedioro Soetjipto was reluctant to disclose about the purpose of his arrival.
However, as cited Acting Head of Fiscal Policy Agency (BKF) Andin Hadiyanto, Freeport arrival aimed to clarify regarding the export duty provisions, the regulatory mission and its implementation in the field.
Benchmark Price
Benchmark Price
On the hand, Director General of Mineral and Coal, Ministry of Energy and Mineral Resources R. Sukhyar mining entrepreneurs ask the duty to comply with it, and conducting down streaming seriously.
Related to mineral benchmark price (HPM) failed to agreed, he said the government is still waiting contract of work (KK) holders through the work of plan.
Namun, kalaupun pelaku tetap tidak menggubris usulan harga tersebut, “Ya tinggal saja.” Direktur Pengusahaan dan Pembinaan Mineral Ditjen Mineral dan Batu bara Dede
However, even if the employers remains ignored the proposal price, "Yes live alone." Director of Mineral Exploitation and Development Directorate General of Mineral and Coal Dede I say Suhendra questioned the premise that contract law higher than the law of mineral and coal mining business requires a down streaming in 2014.
Meanwhile, Chairman of the Indonesian Association of Copper Gold (ATEI) Mansour Natsir assumed government should respect the KK that do not include the export duty provision. Finance Minister also needs to look to international regulations before deciding export duty.
Meanwhile, Chairman of the Indonesian Association of Copper Gold (ATEI) Mansour Natsir assumed government should respect the KK that do not include the export duty provision. Finance Minister also needs to look to international regulations before deciding export duty.
He said, IUP holder mind about the export duty imposition of copper concentrate for 25%. He considered that a realistic figure for 2014 was 2%, 4% for 2015 and 6% for 2016. "Not because of the budget deficit of US$ 5 billion, then the government could apply export duty without calculate it," he said.
He also said IUP holders have not agreed on the copper minerals price offered by the government at 0.60. Because entrepreneurs assumed HPM can afford only 0.48 with calculation using the London Metal Ex - changes.
Source: Bisnis.com
