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ARTICLE · 18 FEBRUARY 2014

Early Effects Of Indonesia's Ore Export Ban

Jones Day
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The unpredictable regulatory environment in the Indonesian mining sector is again surfacing as a major issue for domestic and international mining companies operating in Indonesia.

GlobalEnergy and Natural Resources
Jones Day
Jones Day
Martin King
Martin King
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The unpredictable regulatory environment in the Indonesian mining sector is again surfacing as a major issue for domestic and international mining companies operating in Indonesia. Senior figures in Indonesia's minerals and energy ministry have recently indicated that metal ore and concentrate exports have ground to a halt since the imposition of the ban on ore shipments on January 12. 

While initially tabled as a blanket ban designed to bolster the long-term domestic profitability of Indonesia's mining industry, last-minute regulatory changes diluted the ban to allow some industries to continue exporting unprocessed mineral ore.

The reprieve was extended to copper, manganese, iron ore, lead, and zinc concentrates, and it lowered the minimum processing requirements prior to export. According to Energy and Mines Minister Jero Wacik, 66 companies are allowed to continue to export because they have satisfied government officials that investment in local smelters is

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