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Indonesia bans on ore export

Publication Date : 12-01-2014


The government finally issued on Saturday a new government regulation to support the implementation of the 2009 Mining Law, which bans the export of raw ore.

Only minutes before the controversial law was due to come into force, on Sunday, the government finalised the draft in a meeting held at President Susilo Bambang Yudhoyono’s private residence in Cikeas, Bogor.

"Basically, the PP (Government Regulation No. 1/2014) is intended to implement what is mandated by the law," Coordinating Economic Minister Hatta Rajasa told a press conference after the meeting.

"In line with the spirit of the law, in order to increase added value, it is no longer permitted to export ore, starting 12 am midnight.”

Energy and Mineral Resources Minister Jero Wacik said the government had weighed up several considerations before passing the regulation.

"First, we considered the workers. (We) don't want to see massive layoffs. Secondly, the PP should not burden economic development at local levels. Furthermore, (we also considered how) to keep domestic companies, which have been and will continue to perform the mineral processing, running," he said.

Under the 2009 Mining Law, which aims to boost the domestic downstream industry, all mineral ore must be processed in domestic smelters before being sold overseas.

Previously, the government had forecast a significant fall in the production of several minerals, including nickel, bauxite and iron, due to the ban.



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