Indonesia imposes 20% EXport tax on Au, Ag and Pt, will stop exp. in 2014

swissaustrian

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Indonesia is going to stop raw material exports, starting in 2014.
Before that, they've enacted a 20% export tax on gold, silver and platinum:

Indonesia imposes 20% export tax on Gold, Silver and Platinum
Indonesia has decided to retain gold, silver and platinum in the list of minerals enforced with a 20 percent export tax but coal is exempted.
JAKARTA(BullionStreet): Indonesia has decided to retain gold, silver and platinum in the list of minerals enforced with a 20 percent export tax but coal is exempted.
A total of 65 mineral categories has been included in the list which is expected to provide the government an additional revenue up to $2 billion.
The minerals include antimony, bauxite, chromium, copper , iron ore, iron sand, lead, manganese, molybdenum, nickel, and tin apart from gold, silver and platinum.
Indonesia's Finance ministry said the regulation would assist the government in properly listing and managing mining export performance in the country.
The regulation also stipulates that all mining-permit holders must submit a recommendation letter from the Energy and Mineral Resources Ministry before exporting metal ore.
Such recommendations will only be granted, as stipulated by the draft regulation, if the companies fulfill certain requirements, such as having "clean-and-clear" permits, which would prove that they had complied with procedures stipulated in the 2009 Minerals and Coal Law.
The 2009 Law on Minerals and Coal stipulates that in 2014 all mining companies in Indonesia will be prohibited from exporting raw materials.
To prevent overexploitation of the country's natural resources and excessive environmental hazards before 2014, the government plans to apply the export tax.
http://www.bullionstreet.com/news/indonesia-imposes-20-export-tax-on-gold-silver-and-platinum/1859
 

ancona

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So, we're going to assume the government is buying everything? Is there enough domestic demand to absorb all of the production?
 

JJSF

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So, we're going to assume the government is buying everything? Is there enough domestic demand to absorb all of the production?
In China the government buys 100% of domestic gold production..which has worked for them. Wouldn't surprise me if other countries follow..
Indonesian sovereign bonds are continually being upgraded by the rating agencies.. So these small asian countries like malaysia, indonesia etc look to their most successful neighbor for hints as to how to handle their recent success..
 

rblong2us

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seems like the best kind of 'money' is being kept at home.

Makes perfect sense in a world of burning fiats.
 

pmbug

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Anyone know how much gold and silver Indonesia produces annually? I can't imagine that it is a terribly significant percentage of global production, but it should still contribute to tightening up supply in the physical market.
 

Unobtanium

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Anyone know how much gold and silver Indonesia produces annually? I can't imagine that it is a terribly significant percentage of global production, but it should still contribute to tightening up supply in the physical market.
About 3-5% of the annual gold world production.
About 1% of the annual silver world production.
 
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