Impact on Government Policy Prohibiting Export of Mining Products and Minerals Raw Materials

DOI

10.2991/iceml-18.2018.15How to use a DOI?

Keywords

renewable mining and minerals, prohibition to export and construction of smelter

Abstract

This paper aims to analyze the impact of prohibiting the export of raw materials of mining products as mandated by Law Number 4 of 2009 concerning minerals and coal. Since the mining products are the non-renewable natural resource controlled by the state and used for the greatest prosperity of the people, the government seeks to boost the added value of minerals and mining products as set forth in Law Number 4 of 2009 concerning mineral and coal mining that regulates the obligation of refinement and management of mines and minerals within no later than 5 years. The impact of this policy is that from 2009-2014 mining companies conducted over-exploitation in order to avoid the prohibition to export the raw materials of mining products by the government. Therefore, it requires consistency from the mining companies to build smelters. To avoid the gap between the production of mining materials and the number of smelters, it is expected that all companies can be consistent in conducting the construction of smelter. The implication of the lack of smelter is that many non-salable raw material of mining products that will have an impact on reducing production capacity and this will therefore impact on reducing state revenues, reductions in labor and the erosion of the trade balance. The results of this study provide the benefit that the refining of minerals will provide added value and will provide additional revenue for the country.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Bram B. Baan
PY  - 2018/09
DA  - 2018/09
TI  - Impact on Government Policy Prohibiting Export of Mining Products and Minerals Raw Materials
BT  - Proceedings of the 2018 International Conference on Energy and Mining Law (ICEML 2018)
PB  - Atlantis Press
SP  - 60
EP  - 63
SN  - 2352-5428
UR  - https://doi.org/10.2991/iceml-18.2018.15
DO  - 10.2991/iceml-18.2018.15
ID  - Baan2018/09
ER  -