Freeport Will Sue The Indonesian Government, This Is The Cause

Mining illustration (Doc. Antara)

YOGYAKARTA Warmly discussed by PT Freeport to sue the Indonesian government. The cause of the lawsuit is the rule of exit duty in the Minister of Finance Regulation (PMK) No. 71/2023 concerning the Determination of Export Goods Subjected to Customs and Exit Fees.

The Coordinating Minister for Economic Affairs Airlangga Hartarto also responded to the lawsuit. He emphasized that the policies issued had been adjusted to the current situation.

"Regarding Freeport's lawsuit, the name of this government policy is wise. If we look at the lawsuit," Airlangga explained to the media crew, Monday, August 7.

As mentioned earlier, the lawsuit that will be filed by PT Freeport Indonesia (PTFI) is due to the regulation in PMK No. 71/2023 concerning the Determination of Export Goods Subjected to Exit Fees and Exit Fees of Customs, companies are obliged to pay export duties for metal minerals.

There should be no obligation for companies to pay concentrat exit duties because the smelter progress has reached 50 percent. Even the progress has been verified by the Government in March.

The release of the concentrat exit duty refers to the 2018 special mining business permit (IUPK) document which states that PTFI is free from the copper concentrate exit fee when the smelter has reached a minimum of 50 percent. That way there is no effective export obligation as of March 29, 2023.

However, last July, the Government through the Ministry of Finance (Kemenkeu) issued a regulation that changed the provisions in PTFI's IUPK. Through the Ministry of Finance regulation, there is no release of exit duties for mining companies that build smelters, including PTFI.

Regarding the exit fee, referring to PMK No.71/2023, exports of copper concentrate must pay 5-10 percent.

PTFI's VP of Corporate Communications, Katri Krisnati explained that in the process of implementing Customs and Exit, there is a mechanism for filing objections and appeals. This is used as a forum for realizing objective and accurate customs policies.

According to him, it is natural for business actors to go through an objection and appeal mechanism when there is a debate over the views of business actors and customs authorities.

"In connection with the above context, we understand the possibility of filing objections and appeals, but we still hope that the Government will always apply the provisions for PTFI's Exit Feature in accordance with the IUPK that has been mutually approved," said Katri.

Regarding the possibility of filing a lawsuit, the Acting Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources Muhammad Wafid explained that there was no prohibition if Freeport wanted to file a lawsuit. Wafid also said that Freeport and other companies that have mineral export permits must follow the Regulation of the Minister of Finance (PMK) No. 71/2023 concerning the Determination of Export Goods Subject to Exit Duty and Exit Fees.

"It's in accordance with the new PMK, the rules are like that. It should (follow the rules)," he continued.

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