RI Will Lose IDR 57 Trillion If The Copper Concentrat Export Ban Is Implemented

Illustration (Photo: Doc. Antara)

JAKARTA - The government will ban the export of copper concentrates in June 2023. This is intended to increase the added value of mining minerals by downstreaming.

VP Corporate Communication of PT Freeport Indonesia Katri Krisnati said, broadly speaking, the ban on copper exports could result in the suspension of PTFI's operational activities, which significantly had an impact on all operational activities and the sale of mining products.

"If the suspension of PTFI mining operations occurs, the potential loss to state revenues through taxes, dividends and PNBP will reach Rp57 trillion this year," he told VOI quoted on Thursday, April 13.

In addition, continued Katri, the regions will lose around Rp8.5 trillion per year in revenue for the Provincial, Mimika Regency and surrounding regencies in the province.

He continued, the decision to relax the rules related to the export of the tembag concentrate is entirely the authority of the Government.

Even so, he ensured that currently PT Freeport Indonesia (PTFI) continues to have a dialogue with the government and all stakeholders to review the impact if the copper export ban is enforced.

"We hope the government can consider derivative rules that include details of the type of mineral that can and cannot be sold abroad with certain considerations," he continued.

As is known, the export license limit for PTFI crude copper is only until June 2023.

The government wants copper to be processed and has added value before exporting.

PT Freeport Indonesia has a recommendation for export of copper concentrate from the Ministry of Energy and Mineral Resources (ESDM) until June 2023.

Freeport President Director Toni Wenas said the number of exports allowed was 2.3 million tons.

"We have received export recommendations from the Ministry of Energy and Mineral Resources for the amount in accordance with RKAB, which is 2.3 million tons," said Toni in a Hearing Meeting with Commission VII DPR RI, Monday, March 27.

He continued, this recommendation was obtained because the progress of PT Freeport's smelter construction until January had reached 54.5 percent or 100 percent of the January target of 52.9 percent.

"That's more than 100 percent of the previous plan of 52.9 percent," added Toni.

Toni said that until the end of February 2023, the progress of the construction of the copper smelter had reached 56.5