New changes in export tax rates for copper concentrate in Indonesia

According to MiningWeekly's Reuters report, Indonesia has introduced new regulations to increase the export tax rate of copper concentrate from 5% to 10%.

The Indonesian government is urging mining companies to conduct mineral processing locally rather than exporting raw ore.

Raising export taxes is one of the measures taken by the Indonesian government to promote the construction of domestic refineries, with the aim of expanding domestic processing to obtain more benefits from mineral resources. In June, the country also banned the export of raw ore.

However, the Indonesian government stipulates that if several companies with refinery construction progress exceeding 50% are willing to pay export taxes, they can continue exporting concentrates until mid-2024. The faster the refinery progresses, the lower its export tax rate.

According to the new regulations announced by the Indonesian Ministry of Finance, the export tax rate for copper mining enterprises with a construction progress of more than 50% but less than 70% is 10%, the tax rate for copper mining enterprises with a progress of more than 70% but less than 90% is 7.5%, and the tax rate for copper mining enterprises with a progress of more than 90% is 5%.

Previously, copper mining companies were required to pay a maximum export tax rate of 5%.

According to the new regulations, the export tax rate of iron, lead, and zinc concentrates will be increased to 2.5% -7.5% according to the above progress classification standards.

The new export tax rate is valid from July 17th to December 2023, and may be raised again in January 2024.

According to regulations, from January 2024 to May 31, 2024, according to the progress of refinery construction, the export tax rate of copper concentrate will increase to 7.5% -15%, while the export tax rate of iron, zinc, and lead concentrate will increase to 5% -10%.