Court Dismiss Legal Review on Export Ban
Jakarta-TAMBANG. The Indonesian Constitutional Court has dismissed the lawsuit filed by two associations regarding the mineral export ban posed early this year. The two claimant, Indonesian Bauxite and Iron Ore Mining Association (APB3I in its Indonesian abbreviation) and Indonesian Mineral Business Association (Apemindo), seek for another opportunity from the new Minister of Energy and Mineral Resources.
Erry Sofyan, APB3I Secretary General, looks forward to further discuss the matter with Sudirman Said, Minister of Energy and Mineral Resources. He has faith in the new government, to act wisely and consider the future of bauxite mining business belong to local companies.
"Our discussion with the old minister came to a deadlock. It was difficult. Now, we are looking forward to start a new discussion with the new minister. A little later maybe, since he is still focusing on oil & gas issue," Erry told Majalah TAMBANG after the verdict was announced, Wednesday (3/12).
He would propose for the government to allow bauxite export, within a standardized content ratio and a limited quota. According to Erry, it would really help the mining companies to accelerate smelter development. The domestic processing obligation requires mining companies to complete the smelter project by 2017.
"Currently, there is only one smelter project in process. Harita is working with a Chinese investor to build the smelter. So far, the development has reach 40%. The government should take this as a consideration," said Erry, who is also the Director of PT Harita Prima Abadi Minerals.
Accordingly, Ladjiman Damanik, Executive Director of Apemindo, told that he would comply to whatever the government has decided. However, he still hope that the government would opt for export relaxation.
"Export relaxation, as in controlling export and not banning it," he stressed.
On the other hand, R. Sukhyar as the Director General of Mineral and Coal - Ministry of ESDM felt relieve that the Constitutional Court finally dropped the case. He also addressed the criticism pointed out to the government for the lacking infrastructure needed for smelter to operate. He told that the government has put a consideration on that, and provide support for the down-streaming to be ready by 2017.
"This is about the state sovereignty. So, I'm extremely grateful that the verdict turned out in a positive way," Sukhyar noted.
