Govt to maintain 20% export duty next year

By Demas Simbolon

Trade Minister Gita Wirjawan has stated that an existing 20 percent export duty imposed on 62 mineral ores would stay in place next year in order to push miners to develop added-value on raw material.

?We will remain consistent with a 20 percent export tax on mineral ores next year as long as the miners don?t demonstrate their seriousness to develop downstream business to process mineral ores,? he said as quoted by Bisnis Indonesia.

In a recent interview with Petromindo, Gita said that export on mineral ores decreased after the implementation of a 20 percent export duty and the requirement for miners to secure export permit.

?It has become visible now. Export increase is not as drastic as in previous year. Last year we had a 20 percent to 30 percent increase in export but this year we had smaller digit, only 1.5 percent for the first five months. It is really such a small increase,? he said.

?The Trade Ministry fully supports this although it may reduce export figure of raw materials, but we hope that in the future, export of processed mineral ores will gain more values. It will take two, three or four years to have processing plants or smelters constructed.?

Editing by Adianto P. Simamora