Indonesia Denies Allegation of Export Ban

(Antara/ Sahrul Manda Tikupadang)

VIVAnews – Japan has no compelling reason to file complaint over the export tax on raw minerals including coal to the World Trade Organization (WTO).

Director General of Minerals and Coal of the Ministry of Energy, Thamrin Sihite, said the 20 percent export tax imposed upon 65 raw materials including coal is a policy issued to securing the nation's domestic supply.

“They have no ground to bring Indonesia to the WTO,” he told VIVAnews from Jakarta.

Thamrin said the export tax policy is aimed at conserving the environment as well as restructuring the mining sector in pursuit of meeting the domestic demand.

A country can complain to the WTO should it object with a country which is known to have fully banned exports. Indonesia, he said, still allows export of mineral commodities with one condition: mining sector is downstreamed. 

Ministry of Energy and Mineral Resources had held talks with with the representatives of Japan in efforts to clarify the matter. 

Japan is now the world's second largest nickel user. 

During the meeting, Japan's representatives said they had comprehended the reason behind the policy issuance on the said export tax. However, Thamrin was not convinced whether or not Japan will proceed with the complaint. 

"Japan only knows that Indonesia has stopped exporting [raw materials]. That was absolutely not true," he said. 

To date, Japan called on Indonesia to annul export bans on raw materials to the WTO. "Indonesia's one-sided measure is inappropriate," Takayuki Ueda, Director General of Manufacturing Industry of Japan's Department of Trade, in an interview in Tokyo, June 11th. 

As a result of the export tax on raw minerals, the world’s nickel price will rise about 18 percent to US$20,000 per metric ton in Q4 of this year. 

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