JAKARTA. The government will increase the tariff of mineral export duty by maximum of 10%. The revision of Minister of Finance Regulation 153/PMK.011/2014 will impose the new tariffs to the companies, which have not yet realized the plan for constructing smelter.
Minister of Finance Sri Mulyani Indrawati said that the Ministry of Finance and Ministry of Energy and Mineral Resources (ESDM) are finalizing the discussion on the new tariff of mineral exports. “Hopefully, it will be settled (this week),” Sri Mulyani said.
Sri Mulyani said that the discussion mostly focuses on export duty tariff and the relations with the progress of downstream industry, including its indicators. Sri Mulyani added, there will be the revisions on the layer division, which will be based on the progress of smelter construction.
Head of Fiscal Policy Agency at Ministry of Finance Suahasil Nazara said that Minister of Finance regulation will be finalized in this week. To date, Ministry of Finance and Ministry of ESDM are discussing the maximum tariff of 10% for those who have not constructed smelter at all. “The highest tariff will be imposed to those which have not yet constructed smelter at all. The more progress, the lower (the tariff),” he said.
Several options
Suahasil admitted that the two ministries are still discussing to determine the tariff based on the progress of smelter construction. The layer can be adjusted as an incentive for a company to boost smelter construction.
Previously, the tariff of mineral export duty is stipulated under Minister of Finance Regulation No 153/PMK.011/2014. The highest export duty tariff as much as 7.5% is imposed to the companies, which stand at the phase I of smelter construction. Subsequently, the tariffs are 5% and 0% for the phase II and phase III, respectively. “We are considering several options,” Suahasil.
Vice Chairman of Indonesia’s processing and Refinering Industries Association (AP3I) Jonathan Handojo considers the tariff of 10% is normal, mainly for concentrates that have high value. However, the tariff rate is high for raw mineral.
Jonathan requests the government to maintain the tariff of mineral export duty. He added that the existing layer division has been proper enough. Therefore, he will comply with government’s decision.
(Muhammad Farid/Translator)
