Indonesia steps up single market preparation

JAKARTA. The government has strongly defended its regulation allowing only exports of processed mineral products that came into effect earlier this year, saying that the policy was stipulated by the Mining Law.

In a hearing at the Constitutional Court on Wednesday, the government said that the regulation did not specifically mention a “ban” on ore exports as claimed by a group of miners in their legal challenge against the government’s export restrictions.

The hearing was the third in relation to a request for a judicial review of the 2009 Mining Law submitted last month by Indonesia’s Mineral Entrepreneurs Association (Apemindo), PT Harapan Utama Andalan, PT Pelayaran Eka Ivanajasa and Koperasi TKBM Kendawangan Mandiri after the government implemented restrictions on exports of raw mineral ores in January.

The mining group challenged articles number 102 and 103 in the 2009 Mining Law, which say that mining companies should process and refine their raw minerals in domestic smelters before exporting them, in order to give added value to the country’s mining sector.

The group said that the government had misinterpreted the articles as a ban on ore exports, which is actually not stated in the law.

In a statement signed by the Law and Human Rights Minister Amir Syamsuddin and the Energy and Mineral Resources Minister Jero Wacik, read to the hearing, the government called on the Constitutional Court to reject the judicial review as the implementation of the new policy on mineral exports was in line and consistent with the law and the Constitution.

Under the government regulation it is stated that mineral exports should only be of refined products in accordance with minimum standards of purification.

The purification standards or minimum content of minerals vary. For example, only copper concentrate with a minimum copper content of 15 percent and nickel matte with a minimum content of
70 percent can be sold overseas. The regulation of the minimum contents became effective as of Jan. 12.

Indonesia, which has become a significant exporter of raw materials and commodities, is attempting to climb the supply chain by moving to exports of value-added products.

The move is also aimed at boosting downstream industries, which it is hoped will create more employment.

The hearing on Wednesday was expected to hear from the House of Representatives. However, the House is now in recess and did not send a representation to the hearing.

The next hearing is scheduled for March 26. (Raras Cahyafitri)