Introduction and Background
As participants in the Indonesian mining sector continue to
consider the implications of the 2009 mining law requiring certain
types of in-country processing and beneficiation, the Indonesian
Government has introduced related regulations on (a) the thresholds
that will trigger compliance and (b) an interim tax regime
governing exports of processed but not yet beneficiated metal
minerals until a complete ban takes effect in 2017.
In 2009, the Indonesian legislature passed the mining law that
requires certain mining industry participants to process raw
materials within Indonesia before exporting them to other markets.
Under Articles 103 and 170 of the law, which took effect in January
2014, companies working under relevant contracts and licenses
(which are Contracts of Works ("COW"), Operation
Production Mining Business Licenses ("IUP"), or Operation
Production Special Mining Business Licenses ("IUPK"))
must process and beneficiate raw
