Objection To Customs Out, Freeport Boss Will File An Appeal

President Director of PT Freeport Indonesia (PTFI) Tony Wenas. (Photo: Maria Trisnawati/VOI)

JAKARTA - PT Freeport Indonesia (PTFI) stated that it still pays the export fee for copper concentrate exports.

This is the impact of the policies signed by the Minister of Finance, Minister of Finance Regulation (PMK) Number 71 of 2023 concerning the Determination of Export Goods Subjected to Exit Fees and Exit Fees.

PTFI President Director Tony Wenas said PTFI would file an objection or appeal against the implementation of this policy.

"Yes, we'll see (compared to the tax court), it's still in progress," Tony told the media quoted on Tuesday, October 24.

Even though he objected, he admitted, his party was still making payments to the government and continued to export copper in accordance with the permits that had been pocketed by the Ministry of Energy and Mineral Resources.

This export permit was obtained because the construction of the purification or smelter industry in Gresik is still under construction.

Tony also did not specify the amount of the exit duties that had been paid to the state.

"If you don't pay, you can't export it. I don't have the numbers, but for exports we still have to pay, right, even though we pay with objections," he said.

He explained that the appeal process was still an internal negotiation in PTFI. He also emphasized that the appeal process is commonplace when a company objects to government regulations.

"If you object, there is a refusal, then you can appeal. That's a normal mechanism," concluded Tony.

Previously, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif ensured that the government would not revise the Regulation of the Minister of Finance (PMK) No. 71/2023 concerning the Determination of Export Goods Subjected to Exit Customs and Exit Fees.

Arifin admitted that his party would follow up on PT Freeport's objection to the regulation.

"He (Freeport) can make an appeal (compar) effort, we will not follow up the process later," he said.

As previously reported, Freepot Indonesia was granted an export permit on July 24, 2023 to export 1.7 million metric tons of copper concentrate.

Freeport also said that the export obligations that had been carried out so far referred to the licensing of Special Mining Business Permits (IUPK) agreed to PMK No. 164 of 2018 which stated that there was no obligation or imposition of duties if the development of the smelter project had reached 50 percent.

Meanwhile, in the new regulations, the government will continue to impose mandatory exit duties with a tariff of 5 to 10 percent.