"We basically will be consistent in the implementation of the law, which requires us to conduct processing and smelting, while the duty will be levied on unprocessed mineral ore exports," Hatta Rajasa said.Jakarta (ANTARA News) - The government will not offer any incentive on export duty for mineral products to PT Freeport Indonesia, stated Coordinating Minister for Economic Affairs Hatta Rajasa.
"We basically will be consistent in the implementation of the law, which requires us to conduct processing and smelting, while the duty will be levied on unprocessed mineral ore exports," he noted here on Thursday.
He emphasized that the export duty regulation was intended to lay pressure on the mining companies to build smelters within a period of three years.
"In essence, PT Freeport is obligated to respect the existing export duty. The law states that contracts will be honored until their date of expiry. Other articles state that within a year, the contracts will be adjusted in accordance with the new law," he explained.
Hatta admitted he had met with Vice Chairman of Freeport McMoran Richard C. Adkerson, after the Freeport representative met with Industry Minister M.S. Hidayat.
On Wednesday, Richard C. Adkerson met M.S. Hidayat and Finance Minister Chatib Basri. He also met Minister of Energy and Mineral Resources Jero Wacik at the latters office on Thursday.
R. Sukhyar, director general of coal and mineral resources for Indonesias Ministry of Energy and Mineral Resources emphasized that PT Freeport Indonesia must follow the export duty regulation for copper concentrates set progressively at 25-60 percent for the period between 2014 and 2016.
PT Freeport Indonesia must pay 25 percent duty for its copper concentrate exports in 2014, which is in line with the finance ministers Regulation Number 6/PMK.011/2014.(*)
Editor: Heru Purwanto
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