"In a bid to protect national industry and preserve the country's natural resources deposit, Indonesia plans to stop mineral commodity export by 2014.
A senior official at Indonesian government said that the ongoing massive mineral commodity export would drain out natural resources deposits and exacerbate national industry due to the lack of fuel originated from natural resources to run manufactures.
Director General International Industry Cooperation at the industry Ministry Agus Tjahajana said that the plan to stop mineral resources export would be applied to all countries to which Indonesia used to export its mineral commodities, including China, India, Japan, the United States and South Korea.
Agus said that the ministry is recommending an issuance of particular regulation that charges higher levies for mineral commodities export before the policy to stop mineral commodity is imposed in 2014.
"We need to charge higher exit tariff during the transition period until the policy is implemented," Agus said on Monday.
He said that Indonesia's mineral commodities exports mainly went to China due to massive growth of China's industry in the last few years.
They country's statistic central bureau (BPS) recorded that mineral exports to three largest importer countries that consisted of China, Japan and the United States stood at 1.94 billion U.S. dollars, 1.63 billion U.S. dollars and 1.34 billion U.S. dollars as of last month.
The BPS also learned that mineral resource commodities have been the backbone of the country's export. It accounted for 15.40 percent, or equals to 12.18 billion U.S. dollars to the country's total export in the first half of this year that reached 98.64 billion U.S. dollars.
The mineral resource commodity export figure in the first half of this year was 32.27 percent higher than the 9.21 billion U.S. dollars recorded in the first half of last year."
I've always enjoyed working up in Indonesia, but sometimes they don't know what's good for them? They don't exactly love the Chinese either?
The upside here is that the Indonesian government may give extra support to the pellet plant IDO want to build?
Be interested to know what others think? DYOR.
IDO Price at posting:
58.0¢ Sentiment: None Disclosure: Not Held
