Indonesia’s raw ore export ban – eight months on

Introduction

The Indonesian Government continues to vacillate between waving a stick and dangling a carrot to encourage compliance with the controversial raw ore export ban, which came into effect in January 2014.

In May ( Indonesia's raw ore export ban – five months on) we reported that the Government was considering providing tax relief to smelter companies.

In August, the Ministry of Finance issued a regulation reducing the export tax payable on raw ore exports, provided there is evidence that the company has committed to build a smelter. The effect of the new regulation is that the more advanced the development of the smelter, the less export tax will be payable.

New approach