ANNOUNCEMENT 11 Jan 2017

On 11 January 2017, the Indonesian government announced the regulation 1/2017 updating the mineral ore export ban.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 12 Jan 2017 | Removal date: open ended
Still in force

Export ban

On 11 January 2017, the Indonesian government issued government regulation no.1/2017 amending its mineral export ban (cf. related state acts). The regulation allows mining companies to continue exporting copper concentrate, nickel ore, and washed bauxite. However, they will be required to switch their contracts with the government to a special "IUPK" mining license. Furthermore, they will have invest into Indonesian smelters within five years and divest 51 percent of their shares to the government.

De facto, this amendment does not change the restrictions in Indonesia's mining sector but instead provides more time for companies to adjust to the ore export ban.

Furthermore, on the same say of this amendment, the government has revoked the export license for Indonesia's largest copper producer (cf. related state acts).

Update

On 31 March 2017, the Indonesian Ministry of Energy and Mineral Resources published regulation 28/2017 providing further flexibility for the adjustment time span. The regulation allows for the relaxation of the rules throughout the duration of the "IUPK" or "for a certain period of time in order to allow the continuation of operations" (own translation, art.19).

On 21 September 2018, the Indonesian Ministry of Energy and Mineral Resources issued regulation 43/2018 further specifying the conditions of the divestment to the government.

On 30 August 2019, the Indonesian Ministry of Energy and Mineral Resources announced regulation 11/2019, banning the export of nickel ore starting from 1 January 2020 (see related state act). Previously, the plan was to introduce the ban only in 2022.

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