November 14, 2019 borneodaily.com

Discuss the Controversy on the Cessation of Nickel Exports. Here’s the Response of Mining Business Observer

Caption: The atmosphere of Public Discussion with the theme of the Controversy over the cessation of nickel ore exports and the construction of smelters held at KAHMI, Jakarta
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BorneoDaily.com-– Discussions with the theme of the Controversy over the cessation of nickel ore exports and smelter construction held at KAHMI became the focus of many parties who were exported from the Smelter association.

But in this case, according to mining business observer, Hanifa Sutrisna, said that there are indications of domestic trade competition that is very detrimental to the state and indigenous entrepreneurs who own IUPs. “The trade system is not permitted and does not favor the IUP owner, but rather the Smelter owner,” he explained after attending a public discussion at the KAHMI office, Jakarta, Wednesday (11/06/2019).
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He continued to explain, that smelter owners impose indirect trading or must go through traders and laboratory results that have been determined by smelter owners. “The price is determined by the trader or the price is automatically determined by the smelter owner and does not comply with the price requirements set by the government, the lab test designated by the smelter owner by changing Ni levels from 1.8 levels to Ni 1.3, so prices fall and tax payments fall,” he said.
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He also urged the Government to immediately set the Nickel Price as a reference for smelter owners, such as the Reference Coal price, which is a guideline for domestic coal buyers. “If the sales contract is below the price, the IUP owner must bear the risk, but there is no sanction for the buyer or smelter owner,” said Hanifa
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As a result the contract price dropped so that the taxes paid to the government also fell. Hanifa also mentioned that there was a trading game, so that all the ore would be sold to smelters, as a result the indigenous miners who owned IUP could not build smelters, the impact would be loss and bankruptcy.
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He also concluded that the head of BKPM was too hasty in issuing an appeal without coordinating with relevant institutions. “This clearly makes the atmosphere noisy and this is also very contrary to the advice of Mr. Jokowi’s president who did not want the commotion made by the minister or ministerial level in the second period of his administration,” he said.
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And even more strangely, he also regrets the policy regulations by the BKPM such as the cessation of nickel ore exports. “What is the legal basis for BKPM to stop the export of nickel ore that is not its authority,” he said(*)

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