Home Uncategorized Not Only Export Ban, Smelters Can Get Fines if Development Progress Does Not Reach 90 Percent

Not Only Export Ban, Smelters Can Get Fines if Development Progress Does Not Reach 90 Percent

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Not Only Export Ban, Smelters Can Get Fines if Development Progress Does Not Reach 90 Percent

Jakarta, Timerilis.com – Mineral mining companies are prohibited from exporting and will also get administrative fines for delays in the construction of metal mineral refining facilities in the country under the Decree of the Minister of Energy and Mineral Resources Number 89 of 2023.

Companies committed to building refining facilities must place a guarantee of five percent of total sales from October 16, 2019 to January 11, 2022 in the form of a joint account.

“If on June 10, 2023, the target does not reach 90 percent (of smelter construction), the guarantee will be deposited to the state treasury,” Minister of Energy and Mineral Resources Arifin Tasrif said at the House of Representatives on Wednesday (24/5/2023).

In addition, entrepreneurs are also required to pay a maximum fine of 20 percent of the cumulative value of overseas sales for each period of delay.

However, the government provides convenience for companies affected by Covid-19 but must go through the results of independent verification verifiers.

Holders of Mining Business License (IUP) or Special Mining Business License (IUPK) will also receive fines that will be further regulated by the Ministry of Finance.

“IUP / IUPK holders who export during the extension period will be subject to fines which are further regulated by the Ministry of Finance,” Arifin said.

This policy is carried out so that entrepreneurs in the mining industry can commit to serious domestic downstream to maintain sustainability and ensure domestic processing.