Government Optimistic about Exports despite Ban
6 January 2014 19:00 WIB
TEMPO.CO, Jakarta - Finance Minister Chatib Basri said the ban on raw mineral exports starting this month will not cause Indonesia’s export balance to drop. Loss of state income from mineral exports of US$5 billion (Rp60.8 trillion) can be compensated with the economic policy package on income tax (PPh) article 22 on certain imported goods and income from biofuel exports.
“With PPh 22, we can save up to US$3 billion, and from biofuel around US$3-4 billion,” Chatib said yesterday.
According to him, trade balance surplus in November 2013 gave positive signal towards trade balance in 2014, because even though investments will slow down, import performance is estimated to fall significantly. This is supported by an increase in loan rates. As a result, investments will be postponed and import of capital goods will decrease.
He believes the economic policy package launched by the government will help the balance of trade. Chatib predicted that the trade balance in December 2013 is still likely to show a surplus, although import figure is still quite high. “The US economy improves and causes surplus because imports fall and exports rise."
Chatib said the government must pay attention to employment because the ban may lead to a potential increase in unemployment. If mining companies in for example Borneo, Papua, and Nusa Tenggara, reduce their export volume, unemployment rate in those regions will increase. “So, my concern is more about the potential unemployment in regions, not the trade balance,” he said.
Despite the above, the government has not prepared any fiscal incentives to anticipate the surge in the unemployment rate. Chatib said he is still waiting for discussion results of the Energy and Mineral Resources Ministry.
ANGGA SUKMA | MARIA YUNIAR | FAIZ NASHRILLAH
