Indonesia imposes 7.5% export tax on copper concentrate shipments

INDONESIA will impose a 7.5 per cent export tax on shipments of copper concentrate, effective immediately, a finance ministry regulation showed on Tuesday (Jun 4), applicable to the two mining firms currently exempt from its ban on raw copper exports.

Indonesia has outlawed shipments of raw copper since June 2023, but authorities have permitted Freeport Indonesia and Amman Mineral Internasional to continue exporting until the end of 2024 to give them more time to complete construction of their copper smelters.

The last export permits for Freeport Indonesia and Amman were valid until May 31. For their January-to-May shipments, the government had imposed a tax ranging from 7.5 to 15 per cent, depending on the progress of their smelters.

Freeport Indonesia, majority owned by the Indonesian government but operated by US miner Freeport-McMoran, declined to comment on the tax rate. A company spokesperson said it was still waiting for its new export permit.

Amman did not respond to requests for comment on the tax rate and the status of its new permit. REUTERS