Finance Minister: Raw Mineral Export Ban Hurts the Country

TEMPO.CO, Jakarta - Finance Minister Muhammad Chatib Basri said that state revenue would drop if the ban on the raw mineral exports is put in place. He estimated that the country would suffer Rp10 trillion in financial losses. "The losses come from taxes, loyalty, and customs," he said on Friday.

According to Chatib, the estimation was not different from that of last year and has also accommodated the drop of the mineral commodities price. He also compared a quite sharp drop in 2011 to 2012 with that in 2013 because of the high price of mineral in the international market. "However, the comparison of the drop this year is not too different from that of last year," he said.

Chatib also said that revenues from exports would drop up to US$15 billion. However, he said that the drop in exports could be compensated by the economic policies package launched last year, such as the scheme of the Export Destination Import Ease (KITE) policy, which could cut the budget up to US$3 billion.

In addition, he said that the use of bio-fuel by 10 percent in the solar mix could cut the spending up to US$4 billion.

Furthermore, in a bid to control the big amount of raw mineral exports, Chatib said that the ministry would launch regulation on customs. Nonetheless, he could yet go into detail about the tariff to be applied. Chatib also said that he had ordered the Directorate General of Customs to supervise the smuggling of raw minerals.

ANGGA SUKMA WIJAYA