Tuesday, 19 January 2016


The Ministry of Industry stated they planned to revise Permenperin No.15/MM-IND/PER/3/2014 by simplifying procedure of recommendation-giving for registered exporters by on line. Recommendation from the Ministry of Industry was needed by the Ministry of Trade to meet the procedures as required b the Regulation.

Permenperin No.15/M-IND/PER/3/2014 on Recommendation-giving by Registered Exporters of Processed and Purified Minery Products was related to Permendag No.04/M-DAG/PER/I/2014 on Rules for Export of Processed and Purified Minery Products. Hence simplification of the procedure would ease export activities of minery products. In this case it was not necessary for companies registered at the Ministry’s database to apply for export recommendation the manual way.

In response to Government’s plan, The Association of Indonesian Mineral Processors and Purifier stated that export recommendation by on line would cut long bureaucracy chain. Jonathan Handojo, chairman of the association stated in Jakarta on Friday (25/9) that the way it had been, to obtain such recommendation producers must apply for it the Ministry of Industry to be further passed on to the Ministry of Trade.

Through integrated database, processors and purifier companies with the status of Industrial Permit registered at the Ministry of Industry could automatically export their products. In many cases Processors or Purifier companies of IUI status were not permitted to export products if they did not have Mining Permit (IUP), while permit application must be through the Ministry of Energy and Mineral Resources. Jonathan said that this month there were two smelter companies who started to produce pig iron (NPI) they were: PT Bintang Timur Steel and PT Fajar Bhakti Lintas Nusantara. Hence of 21 association members, 13 companies had now started to produce.

In that same opportunity Jonathan urged the Government to cancel relaxation plan for export of raw minerals. He said that relaxation for bauxite and nickel exporting could injure smelters now operating in Indonesia. So far production activities in Smelters were hindrance due to scarcity of raw materials among IUP owners while many smelters in Indonesia had no mine because they only had IUI. If export valve for raw minerals were open, smelter companies would crumble.

He said that rules relaxation for exporting raw minerals in order to jack up export and increase natural forex reserves would destroy industry downstreaming process and spoil Indonesia’s credibility among foreign investors. The point was that smelter companies operating Indonesia were joint venture companies between Indonesia and South Korea, the Middle East countries, and China etc.

Therefore companies urged the Government to obey Law No. 4/2009 on Minery and Coal and Law No.3/2014 on Industry. Smelter operators, he said, also urged the Government to revise Govt. regulation PP No. 17.1986 on Authority, Regulation, Counseling and Developing Industry as implementation on Law No. 5/1984 on industry which had been cancelled and replaced by Law No. 3/2014. (SS)

Business New - September 30, 2015

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