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.