IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Aug 2014 | Removal date: open ended
Still in force

Export tax

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: 

  • Stage I: the progress of the construction up to 7.5% including the seriousness guarantee 'i.e. a deposit of 5% meant to show the company's seriousness in constructing the smelter';
  • Stage II: the progress of the construction of more than 7.5% up to 30%;
  • Stage III: the progress of the construction over 30%.' (own translation)

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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

141 Iron ores & concentrates, other than roasted iron pyrites
2601 Iron ores and concentrates, including roasted iron pyrites.
260111 Nonagglomerated
260112 Agglomerated
142 Non-ferrous metal ores & concentrates
2602 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20 % or more, calculated on the dry weight.
260200 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20 % or more, calculated on the dry weight.
2603 Copper ores and concentrates.
260300 Copper ores and concentrates.
2607 Lead ores and concentrates.
260700 Lead ores and concentrates.
2608 Zinc ores and concentrates.
260800 Zinc ores and concentrates.
2614 Titanium ores and concentrates.
261400 Titanium ores and concentrates.

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