SMM5 March 19: recently, Indonesia approved the amendment to Law No. 4 of 2009 on mineral and coal mining (Minerba), also known as Minerba Law. The amendment to the Minerba Act provides for many important aspects. These range from license issuing agencies, license expansion, regulation of people's mining license (IPR) and environmental aspects, downstream, divestment, to arrangements that claim to strengthen the (BUMN) of state-owned enterprises.
One of the concerns is that it is related to the downstream, particularly in terms of relaxing incentives in the form of mineral exports, which are not yet in place over the next three years. This provision is contained in section 170A. Yunus Saefulhak, director of mineral development and operations at ESDM, said that some metal products that can be exported will be subject to derivative regulations and regulations implementing the new Minerba law.
Yunus said that in general, the government will develop derivative and enforcement regulations from the government regulation (PP) to the ESDM ministerial regulation (Permen). He stressed that until now and before the introduction of new regulations, regulations related to the export of existing mineral products still apply. As a result, the export of copper concentrate, iron ore and bauxite remains subject to the minimum restrictions of the Minister of Energy and Mineral Resources Regulation No. 25 of 2018.
Yunus said his party had no plans to reopen exports of low-grade nickel mines, and that the export ban had accelerated since January 1, 2020. The Minister of Energy and Mineral Resources Regulation No. 11 of 2019 provides for a ban on accelerating the export of low-grade nickel ores. This means that as long as there is no new Permen, ban on nickel exports will still apply. For nickel mines, exports are still banned and the government has no plans to relax.
At the same time, Article 170 (1) provides that the holder of a metal mineral OP's work contract, (CoW), mining business license, (IUP) production operation (OP) or special IUP (IUPK) may sell certain unrefined metal mineral products. A certain amount of money can go abroad within three years after the law comes into force.
: (a) carries out processing and refining activities under the following conditions, (b) carries out joint processing and / or refining by, (c) during the construction of a processing and / or refining facility.
In addition, article (2) Article 170A provides that holders of KK,OP IUP or OP IUPK of metal minerals that sell certain metal mineral products abroad must pay export duty in accordance with the law.
At the same time, Article 170 (3) provides that further provisions on certain unrefined metal mineral products and certain overseas sales shall be regulated by regulations issued by the Ministry.
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