Ministry to Cut Mineral Export Tax
23 April 2014 15:48 WIB
TEMPO.CO, Jakarta - The Energy and Resources Ministry (Ministry) has planned to issue another policy aimed at domesticating minerals and coal processing, this time with significant cut to export duties for companies that have built their own smelters.
The Ministry's director for minerals and coal Dede Ida Suhendra, said that they could drop the tax to 10 percent, half the current export duty and almost nothing in comparison to the 2016 target of 60 percent.
However, Dede said that the figure has not been finalized since there are several calculations and discussions to be done by government institutions.
"We're still formulating [the tax] based on available criteria, which is a lot, and it can't be instantaneous," he said.
Mining companies are required to operate a refinery or smelter, or prove to the Ministry that there is one being constructed by paying a 'commitment fee' to the government.
BERNADETTE CHRISTINA MUNTHE
