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Ministers Decline Request of Freeport
Rozik Sutjipto, President Director of Freeport Indonesia. TEMPO/Imam Sukamto
Friday, 31 January, 2014 | 08:10 WIB
Ministers Decline Request of Freeport

TEMPO.CO, Jakarta - The Ministry of Energy and Mineral Resources has asserted that PT Freeport Indonesia must still comply to copper concentrate export duty obligation of 25-60 percent of 2014 to 2016, as stated in the Mineral and Coal Law.

"Export duty regulation must be implemented," director general for mineral and coal, R. Sukhyar, said yesterday. The Ministry of Finance holds the authority over export duty relaxation, according to Sukhyar. However, the Ministry of Energy and Water Resources still obliges Freeport to build smelter. "Opportunities for smelter cooperation must be taken by Freeport. That’s the point," he said.

Energy Minister Jero Wacik shares the agreement. Freeport's visit to Merdeka Selatan was to ask for explanation regarding Mineral and Coal Law. "I explained to them that ore export had been banned since January 12, 2014. I emphasized that they must build smelter in Indonesia and they understood," he said. Freeport visited the Ministry of Industry and Ministry of Finance yesterday in a bid for concentrate export duty relaxation as a precondition for the company’s obligation to build smelter.

However, Industry Minister Hidayat declined the request, saying the decision was up to Finance Minister and Coordinating Minister for Economic Affairs. "They are willing to build smelter if they can get relaxation from export duty. I said it’s not possible. Export ban must proceed."

AYU PRIMA SANDI  



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