Give Crude Mineral Export Permits Until 2024, Minister Of Energy And Mineral Resources Ensures To Fine Development Delays

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that the government continues to grant permission to companies to export five types of commodities until May 2024.

However, Arifin ensured that the government would continue to fine business entities that were late in building purification facilities (smelters) which should have been completed in June 2023.

"The construction of the mineral refining facility must be completed on June 10, 2023, in accordance with the Minerba Law Number 3 of 2020 in article 170A. The maximum 3 years of mineral sales limit is stated in the issued Minerba Law," Arifin said in a Working Meeting with Commission VII DPR RI quoted Thursday, May 25.

Arifin said, to ensure the acceleration of the construction of a purification facility or smelter, it is necessary to have a legal umbrella that can be the basis for providing opportunities for the sale of metal mineral processing products for certain commodities.

He explained that the imposition of sanctions for delays in purification facilities refers to the Decree of the Minister of Energy and Mineral Resources Number 89 of 2023 concerning Guidelines for the Imposition of Administrative Fines for the Suspension of the Construction of Metal Mineral Purification Facilities in the Country.

"First sanction, placement of seriousness guarantees of 5 percent of total sales in the period 16 October 2019 to 11 January 2022 in the form of joint accounts (Escrow accounts)," explained Arifin.

Then second, the imposition of administrative fines for delays in purification facilities by 20 percent of the cumulative value of sales abroad for each delay period taking into account the impact of the COVID-19 pandemic.

Third, IUP or IUPK holders who export the extension period will be subject to a fine further regulated by the Ministry of Finance.

The following, administrative fines take into account the activities affected by the pandemic based on the Independent Verificator report, with the following formulation:

Fine = (90 percent - A - B) / 90 percent) x 20 percent x C

A = the cumulative percentage of physical progress according to verification B = the total weight affected by Covid-19 according to the results of the C = cumulative value of sales abroad during the development period