Finance Minister Sri Mulyani Indrawati. TEMPO/Destrianita
TEMPO.CO, Jakarta - The government has changed the Regulation of the Finance Minister (PMK) No.140/PMK.010/2016 to PMK No. 13/PMK.010/2017 on Export Goods Subject to Export Duty and Export Duty Rate.
“The background of the new PMK is to push for the acceleration of improved domestic mineral added value,” the head of Fiscal Policy Agency, the Finance Ministry, Suahasil Nazara, said in a written statement on Monday, February 13, 2017.
Suahasil referred to processing and refining activities to provide added value that could improve people’s prosperity.
The new regulation stipulates that export duty of mineral concentrate is between 0 – 7.5 percent, depends on the physical progress of smelting facility. “The higher the physical progress of the development, the lower the export duty will be and vice versa.”
The policy is issued to push the industry into completing their smelting plants. A flat 10 percent export duty rate will be imposed on mineral products with certain criteria: nickel with content below 1.7 percent and washed bauxite with over 42 percent alumina content.
The regulation is in line with the implementation of Harmonized System 2017 and Asean Harmonized Tariff Nomenclature 2017. Meaning that the government has to change HS code of goods from a 10-digit code to an 8-digit code on exported goods subject to export duty.
