This Is The Ministry Of Finance's Response To Freeport's Features Of Exit

Finance Minister Sri Mulyani (right) with Freeport-McMoran CEO Richard C. Adkerson (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) stated that the implementation of the Minister of Finance Regulation (PMK) Number 71 of 2023 concerning the Third Amendment to PMK Number 39 of 2022 concerning the Determination of Export Goods Subjected to Exit Fees and Exit Fees is the same as the applicable mechanism.

This was emphasized by the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu in a press conference on the realization of the APBN today. According to him, the belief is in line with the Ministerial Regulation (Permen) of Energy and Mineral Resources Number 7 regarding the sale of processing products abroad.

"The fulfillment of the obligation to pay off duties and tariffs is related to the progress/progress of the smelter construction," he said, Friday, August 11.

Febrio explained that PMK 71 is relevant to Government Regulation (PP) Number 37 related to Non-Tax State Revenue (PNBP) and taxation for mining/ mineral businesses.

"This is in line with the Minerba Law. In PP 37 it is stated that the types of state revenues that follow the laws and regulations are called prevailing and are permanent, for a certain period it is regulated," he said.

For information, PMK 71 contains three important rules regarding the export of copper concentrates that are adjusted to exit duties.

First, phase I with the construction of a physical smelter of 50 percent to 70 percent, the company will be subject to a 10 percent exit fee by the end of the year and 15 percent starting in 2024.

Second, phase II with the construction of a physical smelter of 70 percent to 90 percent is subject to an exit fee of 7.5 percent by the end of the year and 10 percent starting in 2024.

Third, phase III with 90 percent to 100 percent physical smelter construction is subject to a 5 percent exit fee until the end of the year and 7.5 percent starting in 2024

"Therefore PMK 71 is in accordance with PP 37 so there is no confusion there," said Febrio.

Meanwhile, the case raised by PT Freeport Indonesia (PTFI) is a matter of mutual agreement as outlined in the Special Mining Business Permit (IUPK).

PTFI carried out business activities referring to PMK No. 164 of 2018 which contained the provisions for the construction of a smelter of more than 50 percent, subject to a 0 percent exit fee. To note, the construction of the PT Freeport Indonesia smelter in Gresik, East Java has reached 75 percent in July 2023.