Background to Export Prohibition

Oct 13, 2025 by magicalceylontours.com 10 views

Juridical Analysis of the Prohibition of Concentrate Exports at PT. Freeport Indonesia Based on Law Number 4 of 2009 concerning Mineral and Coal Mining

The Indonesian government has taken significant steps in regulating the mineral and coal mining industry through its regulative policy. One of these actions is the prohibition of export concentrates by PT. Freeport Indonesia, which is regulated based on Law Number 4 of 2009 concerning Mineral and Coal Mining and strengthened by various government regulations and ministerial regulations. This prohibition is a response to the need to increase mineral added value through processing and refining carried out domestically, in accordance with Regulation of the Minister of Energy and Mineral Resources Number 5 of 2017.

Background to Export Prohibition

The prohibition of export concentrates is based on the applicable law, which requires Mining Business License (IUP) and Contract of Work (KK) holders to carry out the processing and purification of mining products in the country. Article 103 of Law No. 4 of 2009 explicitly states that each IUP/IUPK Operational Production (OP) holder is required to carry out the processing and refining of minerals in the country. This is also confirmed in Article 170 which stipulates that the CoW holders must carry out purification in the country within five years.

The government has also issued several Government Regulations (PP) to support the implementation of this policy. For example, PP No. 23 of 2010 states that mining business activities must be carried out in accordance with established processing and refining obligations. Further changes in the PP, as well as the launch of the Minister of Energy and Mineral Resources Regulation, emphasized the importance of mineral processing activities to increase added value, and have direct implications for the prohibition of concentrate exports.

The prohibition of export concentrates is not only a response to the need to increase mineral added value but also a strategic step for the government to increase domestic investment for mineral processing, create jobs, and increase state income. However, the implementation of this policy must be accompanied by a mature strategy to maintain investor interest and encourage the development of a sustainable mining sector in Indonesia.

Implementation and Impact of Export Prohibition

Since January 12, 2017, the prohibition of concentrate exports for KK holders began to be implemented. PT. Freeport Indonesia, which was previously one of the main players in the mining industry in Indonesia, is now unable to export the minimum processing results. Although the company can submit a change in status into a Special Mining Business License (IUPK), this process requires adjustments and meets various administrative requirements that can take time and resources.

The prohibition of export concentrates has a significant impact not only on PT. Freeport but also in the mining sector as a whole. On the one hand, this policy is expected to increase domestic investment for mineral processing, create jobs, and increase state income. On the other hand, there is a risk that foreign investors will feel uncomfortable with changing policies and can reduce their interest in investing in the Indonesian mining sector.

The government's strategy to maintain investor interest and encourage the development of a sustainable mining sector in Indonesia is crucial. The government must provide a clear and stable regulatory framework that encourages investment in mineral processing and refining. The government must also provide support for domestic investors to increase their capacity and competitiveness in the mining sector.

Challenges and Opportunities

The prohibition of export concentrates presents both challenges and opportunities for the mining sector in Indonesia. On the one hand, the policy is expected to increase domestic investment for mineral processing, create jobs, and increase state income. On the other hand, there is a risk that foreign investors will feel uncomfortable with changing policies and can reduce their interest in investing in the Indonesian mining sector.

The government must address the challenges and opportunities presented by the prohibition of export concentrates. The government must provide a clear and stable regulatory framework that encourages investment in mineral processing and refining. The government must also provide support for domestic investors to increase their capacity and competitiveness in the mining sector.

Conclusion

The prohibition of export concentrates at PT. Freeport Indonesia is a strategic step for the government in increasing the added value of minerals in the country. By strengthening existing regulations and establishing tighter policies, the government hopes to facilitate better mineral processing and refining, and improving the welfare of the community. However, the implementation of this policy must be accompanied by a mature strategy to maintain investor interest and encourage the development of a sustainable mining sector in Indonesia.

The government must provide a clear and stable regulatory framework that encourages investment in mineral processing and refining. The government must also provide support for domestic investors to increase their capacity and competitiveness in the mining sector. The government must address the challenges and opportunities presented by the prohibition of export concentrates and provide a clear and stable regulatory framework that encourages investment in mineral processing and refining.

Recommendations

Based on the analysis of the prohibition of export concentrates at PT. Freeport Indonesia, the following recommendations are made:

The government must provide a clear and stable regulatory framework that encourages investment in mineral processing and refining.
The government must provide support for domestic investors to increase their capacity and competitiveness in the mining sector.
The government must address the challenges and opportunities presented by the prohibition of export concentrates and provide a clear and stable regulatory framework that encourages investment in mineral processing and refining.
The government must provide a clear and stable regulatory framework that encourages investment in mineral processing and refining.
The government must provide support for domestic investors to increase their capacity and competitiveness in the mining sector.

Future Directions

The prohibition of export concentrates at PT. Freeport Indonesia presents both challenges and opportunities for the mining sector in Indonesia. The government must address the challenges and opportunities presented by the prohibition of export concentrates and provide a clear and stable regulatory framework that encourages investment in mineral processing and refining.

The government must provide support for domestic investors to increase their capacity and competitiveness in the mining sector. The government must also provide a clear and stable regulatory framework that encourages investment in mineral processing and refining. The government must address the challenges and opportunities presented by the prohibition of export concentrates and provide a clear and stable regulatory framework that encourages investment in mineral processing and refining.

Conclusion

References

Law No. 4 of 2009 concerning Mineral and Coal Mining.
Regulation of the Minister of Energy and Mineral Resources Number 5 of 2017.
Government Regulation No. 23 of 2010.
Minister of Energy and Mineral Resources Regulation.
PT. Freeport Indonesia.

Appendix

List of abbreviations.
List of tables.
List of figures.

Glossary

Mining Business License (IUP).
Contract of Work (KK).
Special Mining Business License (IUPK).
Mineral and Coal Mining Law.
Regulation of the Minister of Energy and Mineral Resources.

Index

List of keywords.
List of topics.
List of references.

Abstract

Keywords

Prohibition of export concentrates.
PT. Freeport Indonesia.
Mineral and Coal Mining Law.
Regulation of the Minister of Energy and Mineral Resources.
Government Regulation No. 23 of 2010.
Minister of Energy and Mineral Resources Regulation.
Mining Business License (IUP).
Contract of Work (KK).
Special Mining Business License (IUPK).
Mineral and Coal Mining Law.

Summary

Recommendations

Based on the analysis of the prohibition of export concentrates at
Q&A: Juridical Analysis of the Prohibition of Concentrate Exports at PT. Freeport Indonesia Based on Law Number 4 of 2009 concerning Mineral and Coal Mining

Q: What is the purpose of the prohibition of export concentrates at PT. Freeport Indonesia?

A: The purpose of the prohibition of export concentrates at PT. Freeport Indonesia is to increase the added value of minerals in the country by requiring the company to process and refine minerals domestically.

Q: What is the basis of the prohibition of export concentrates at PT. Freeport Indonesia?

A: The basis of the prohibition of export concentrates at PT. Freeport Indonesia is Law Number 4 of 2009 concerning Mineral and Coal Mining, which requires Mining Business License (IUP) and Contract of Work (KK) holders to carry out the processing and purification of mining products in the country.

Q: What are the implications of the prohibition of export concentrates at PT. Freeport Indonesia?

A: The implications of the prohibition of export concentrates at PT. Freeport Indonesia are significant, both for the company and for the mining sector as a whole. On the one hand, the policy is expected to increase domestic investment for mineral processing, create jobs, and increase state income. On the other hand, there is a risk that foreign investors will feel uncomfortable with changing policies and can reduce their interest in investing in the Indonesian mining sector.

Q: What are the challenges and opportunities presented by the prohibition of export concentrates at PT. Freeport Indonesia?

A: The challenges and opportunities presented by the prohibition of export concentrates at PT. Freeport Indonesia include the need to increase domestic investment for mineral processing, create jobs, and increase state income, as well as the risk that foreign investors will feel uncomfortable with changing policies and can reduce their interest in investing in the Indonesian mining sector.

Q: What is the role of the government in implementing the prohibition of export concentrates at PT. Freeport Indonesia?

A: The role of the government in implementing the prohibition of export concentrates at PT. Freeport Indonesia is to provide a clear and stable regulatory framework that encourages investment in mineral processing and refining, as well as to provide support for domestic investors to increase their capacity and competitiveness in the mining sector.

Q: What are the benefits of the prohibition of export concentrates at PT. Freeport Indonesia?

A: The benefits of the prohibition of export concentrates at PT. Freeport Indonesia include the increase in domestic investment for mineral processing, the creation of jobs, and the increase in state income.

Q: What are the risks of the prohibition of export concentrates at PT. Freeport Indonesia?

A: The risks of the prohibition of export concentrates at PT. Freeport Indonesia include the risk that foreign investors will feel uncomfortable with changing policies and can reduce their interest in investing in the Indonesian mining sector.

Q: What is the future direction of the prohibition of export concentrates at PT. Freeport Indonesia?

A: The future direction of the prohibition of export concentrates at PT. Freeport Indonesia is to continue to provide a clear and stable regulatory framework that encourages investment in mineral processing and refining, as well as to provide support for domestic investors to increase their capacity and competitiveness in the mining sector.

Q: What are the recommendations for the implementation of the prohibition of export concentrates at PT. Freeport Indonesia?

A: The recommendations for the implementation of the prohibition of export concentrates at PT. Freeport Indonesia include the need to provide a clear and stable regulatory framework that encourages investment in mineral processing and refining, as well as to provide support for domestic investors to increase their capacity and competitiveness in the mining sector.

Q: What is the conclusion of the juridical analysis of the prohibition of concentrate exports at PT. Freeport Indonesia?

A: The conclusion of the juridical analysis of the prohibition of concentrate exports at PT. Freeport Indonesia is that the prohibition is a strategic step for the government in increasing the added value of minerals in the country, but it must be accompanied by a mature strategy to maintain investor interest and encourage the development of a sustainable mining sector in Indonesia.

Q: What are the final thoughts on the juridical analysis of the prohibition of concentrate exports at PT. Freeport Indonesia?

A: The final thoughts on the juridical analysis of the prohibition of concentrate exports at PT. Freeport Indonesia are that the prohibition is a significant step for the government in increasing the added value of minerals in the country, but it must be accompanied by a mature strategy to maintain investor interest and encourage the development of a sustainable mining sector in Indonesia.