ECONOMIC IMPACT OF ADDED VALUE POLICY FOR COPPER AND ITS ASSOCIATED MINERALS

• Main Author: Salem Al Hamid, Said
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/56789
• Institution: Institut Teknologi Bandung

One of the purpose of increasing mineral value added policy through domestic processing and refining activity, as stated in Law No. 4/2009 article 102 and 103 is to optimize state revenues from corporate tax and non-tax revenues. One example of corporate non-tax revenues is mineral royalties. Various regulations have been issued to support the value added policy, including the export ban of raw materials or concentrates. Another regulation to give detailed explanation on mineral royalty policy is the issuance of Government Regulation No. 9/2012. This study examines the impact of mineral added value policy for copper mining, specifically the impact of the development of domestic downstream copper industry to the country's economy. One of the policy implementation is domestic copper smelter construction plan which is expected to carryout all extraction process of whole national copper concentrate production. Beside producing and selling copper cathode as a main product of the extraction process, another by-product sold by the smelter is anode slimes which contain copper associated minerals such as Au, Ag, Bi, Pd, PT, Se, Te and Pb. Those valuable minerals are not included in state revenue from royalty calculation. Delays in the implementation of royalty rates in accordance with Goverment Regulation No 9/2012 caused the difference in state revenues from mineral royalties for the years 2012, 2013 and 2014 respectively 2.4 trillion rupiah, 1.96 trillion rupiah and 2.08 trillion rupiah. Meanwhile, for the same period there is a potency of state revenue addition of 40-42 billion rupiah, if the calculation of mineral royalties from anode slimes sold by the smelter is included.