Dear All, As we noticed the new regulations based on the Indonesian Minerals Laws will be applied starting from early January 2013.
We understand that many overseas Investors are getting worried about their existing Investments on Mining in Indonesia due to this new Laws as it appears that the new Minerals Laws will be affecting all mining projects in Indonesia. So far the Indonesian Government, especially the top level remains silent as they feel the affects will not be as bad as what they predict. Several days ago, the leading media newspapers already mentioned that starting 2013, all exports on Minerals items (this include Steam Coal, Iron Ore, Iron Sand, Manganese Ore, Manganese Sand, and many more) will be subject to tax imposed @ 25% - and will be increased to 50% by early 2014. Many local investors and concessions owners have thoughts that under this new imposures, there is hardly any profits to be earned from the mining business sectors. However there are several loopholes which we have to carefully study and this loopholes will be our key to success.. On the legal aspects, mine owners and all parties related to the mining business can apply for a Judicial reviews on this Mineral Mining Laws and for sure to request the removal / cancellations on the clause where it will help benefits for the mine owners. Together we can apply and for sure we can get this removal approved by the Constitutional Courts. Government may not realize the huge impacts if all mine owners and parties related stop operations together by end of December 2012, which means one of the biggest tax contributions to the state budgets will help the government to find the ways to cancel or pending the application of the new Law. If all stop operations together, all mining labors, truck drivers, mechanical operators including the HSD (Diesel Oil), hotels in Kalimantan where major big miners are based, will be badly affected. These means all labors will not pay their income taxes as well. For sure, if Central Government expected to absorb all mining raw materials products locally, there would not be sufficient to be absorbed. Even several power plants have converted from steam coal consumptions to gas. To manufacture all raw materials from mining sectors will require longer time to prepare and construct the factories and erect the machineries. Firdaus Juven MBA [Non-text portions of this message have been removed]
