ANNOUNCED AS TEMPORARYNo
On 25 July 2014, the Indonesian Ministry of Finance amended its regulation on export tax for unrefined metal minerals (cf. Related Measures). With the amendment 153/PMK.011/2014, the export duty has been cut for export companies that are constructing smelters. The duty exemptions depend on the stages of construction.
As noted in paragraph 4A(3) of the amendment, the 'stages construction progress referred to in paragraph 2 are as follows:
According to the appendix of regulation 153/PMK.011/2014, exporters in stage I will pay an export duty of 7.5%, in stage II 5% and the export duty will be completely ceased for exporters in the third stage.
As cited by the Jakarta Post ("Lower export duties come with close monitoring", 5.8.2014), the Director General for mineral and coal at the Energy and Mineral Resources Ministry R. Syukhar announced that "every six months, development must reach at least 60 percent of its target. If the target is missed, we will halt the companies' exports".
The amendment is another measure in a long line of incentives to increase the local-based refining process of minerals by the Indonesian government (cf. Related Measures).
The new rules came into force one week after the enactment, i.e. 1 August 2014.
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