TEMPO.CO, Jakarta - The Indonesian government has extended rules on mineral concentrate exports that ended Thursday, January 12, 2017. New requirements have been set for export permits.

Energy and Mineral Resources Ignatius Jonan said that recommendation on mineral concentrate exports will only be issued to holders of mining permits (IUP) and special mining permits (IUPK). “Under one condition: to build smelters,” he said in his office in Jakarta on Thursday, January 12. Failing that, they will be allowed to team up with those who have one.

Holders of IUP and IUPK must issue a statement letter of their willingness to build smelters over the next five years. Smelter construction will be evaluated on a six monthly basis. They will have to meet at least 90 percent of construction requirements set.

Jonan said that the government will form a monitoring team for smelter construction. “If such requirements were not met after an evaluation, export recommendation will be revoked,” he said.

The policy is stipulated in Government Regulation No. 1/2017 on mineral and coal mining business.

As such, holders of Contract of Work are banned from mineral concentrate exports unless they can switch to IUPK. They, however, are still allowed to export of domestically processed and refined minerals.

Bambang Gatot, Directorate General of Mineral and Coal, the Energy Ministry, said that the government will still limit export volume. “The key is to meet domestic demand first and foremost,” he said.

Bambang said that deliberations on the exact figure of export volume limit and export benchmark price were underway. Ministerial Regulation will be the legal umbrella of such rules.

VINDRY FLORENTIN