The Ministry of Energy and Mineral Resources will proceed with firmly banning export of bauxite ore after June 10, 2023. The ban is in accordance with provisions regulated in law No. 3 of 2020 concerning Mineral and Coal Mining.
However, Minister of Energy and Mineral Resources Arifin Tasrif stated that the government will provide copper concentrate export relaxation for PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara, which are in the process of completing the construction of copper smelter.
“Well, companies that are allowed [to export] are those with more than 50% [smelter construction] progress, they have spent a lot of money. If it become neglected, it would be a waste. But we will impose fine, there is a fine,” Arifin said.
Further related to bauxite, Arifin asserted that the Ministry of Energy and Mineral will make consideration to allow exports for mining companies that have made significant progress in smelter construction. But, based on the ministry’s observation, several smelter projects have not made any progression.
Ministry encourages bauxite smelter continuation despite export ban
The Ministry of Energy and Mineral Resources also encouraged bauxite mining businesses to continue with their construction of smelter, refining, and processing facilities.
“Well bauxite mining companies should build smelter. There should be cooperation, in principle, we build smelter to add value. I mean come on, don’t just want to reap benefits and give the government leftovers,” Arifin said on Friday (9/6).
Ready for complaints
In addition, Minister Tasrif also said that the government is prepared to fight against any lawsuits or complaints related to the upcoming bauxite export ban.
Tasrif referred to the previous case brought by the WTO against Indonesia related to nickel ore export ban.
“If we were sued, we will sue back,” Tasrif said at his office on Friday (9/6).
