Indonesie Forum

In an apparent tit-for-tat, the government is likely to reduce the export duties mining companies have to pay in return for their commitment to build smelters.

The Energy and Mineral Resources Ministry’s director general for minerals and coal, R. Sukhyar, said on Monday that changes would likely come to the tax regulations on mineral exports.

“The duty applied to exports from companies already performing serious [downstream] activities must be eased,” he said, adding there had to be physical evidence of smelters being built.

“They can get a dispensation — the export tax can be zero,” he said.