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PrintIndonesia’s mineral ore export ban that was implemented last month will not affect the nation’s ability to maintain a trade surplus this year, a senior government official said on Feb.12
“We are ready to take the consequences,” Deputy Trade Minister Bayu Krisnamurthi said at an event sponsored by the Jakarta Foreign Correspondents Club in the nation’s capital. “There will be a little bit of suffering in exports this year and maybe a little bit early next year. But we will definitely keep a trade surplus this year.”
The government implemented on Jan. 12 a ban under the 2009 Mining Law that restricted mining companies from exporting raw minerals. The ruling was meant to encourage more smelter production in Indonesia, but at the same time mining companies say the unintended consequences of this policy will destroy their sector and would result in job losses.
Several companies such as the Indonesian unit of Germany’s Sud-Chemie have export permits that are due to expire on Friday, and they want an extension.
Dieter Seng, president director of Sud-Chemie Indonesia, asked Bayu if an extension was possible, but Bayu gave an ambiguous response.
“Friday is Valentine’s Day, so love is in the air, just wait and see,” he told a bemused Seng.
Julian Hill, a technical advisor at Deloitte Konsultan Indonesia, a local consulting company, who was also present at the panel discussion, said that the Indonesian government needed to be more reasonable to mining companies.
Hill cited the 2009 Mining Law as allowing some miners that have committed to build smelters domestically, but at the same time they will need to pay a new export tax of between 20 percent and 25 percent, which will be gradually increased to 60 percent by 2017.
“Sixty percent tax is unreasonable,” he said.
Saleh Abdurrahman, head of communications at the Energy and Mineral Resources Ministry gave Hill a short response.
“Well, it depends on your willingness,” he said.
Indonesia posted a surplus for a third month in December at $1.5 billion trade thanks to a surge in mineral ore exports ahead of a government ban. The country shipped $17 billion worth of commodities and merchandises to overseas markets in December. That compared with $15.5 billion of imports, the Central Statistics Agency (BPS) announced early this month.
The nation hasn’t posted an annual trade surplus since 2011.
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