Indonesia gets tough on mining firms over building of plants

Companies face big fines if they fail to meet their commitments on construction

President Joko Widodo's administration is pushing for mining companies to climb up the value chain and ship value-added intermediate products overseas, as opposed to just the raw mineral that attracts less export revenue. PHOTO: REUTERS
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In a bold move to ensure mining companies meet their commitments to build processing plants or smelters, Indonesia has decided to impose big fines on them, payable within a month, if they fail to make progress on construction as planned.

The fines could amount to the equivalent of 20 per cent of the value of unprocessed mineral exports - such as nickel ore, raw bauxite and copper - in the past six months.

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A version of this article appeared in the print edition of The Straits Times on September 05, 2019, with the headline Indonesia gets tough on mining firms over building of plants. Subscribe