Heaptalk, Jakarta — The Indonesian government will officially ban the export of copper concentrates on January 1, 2025. According to the Directorate General of Customs and Excise (DGCE) at the Ministry of Finance, this ban could decrease export duty revenue by up to Rp11 trillion in 2025, falling short of the Rp17 trillion target.
“Out of the projected Rp20.8 trillion, copper contributes slightly more than Rp11 trillion, while palm oil accounts for approximately Rp9.6 trillion in export duties,” stated Aflah Farobi, Director of Revenue and Strategic Planning at DGCE, during a recent media briefing on the DGCE’s 2024 performance and 2025 strategy in Jakarta.
With the copper concentrate export ban set to take effect on January 1, 2025, Aflah mentioned that the target for export duty revenue has been adjusted to Rp4.5 trillion, relying solely on palm oil exports.
“Given the ongoing export ban on minerals, the 2025 target for export duties is only Rp4.5 trillion, predominantly from palm oil,” Aflah explained.
He acknowledged that it would be challenging to achieve this revenue solely from palm oil exports, especially since the 2024 export volume is expected to be 36 million tons, significantly lower than the initial assumption of 39 million tons.
“The impact will largely depend on the market price of CPO,” Aflah added. Previously, under President Joko Widodo’s administration, the government extended export permits for five raw commodities: laterite iron concentrate, copper concentrate, zinc concentrate, lead concentrate, and anode slime. These commodities were allowed for export until December 31, 2024, but will be banned starting January 1, 2025.
Budi Santoso, Director General of Foreign Trade at the Ministry of Trade, explained that the government’s relaxation of mining export policies aimed to foster domestic processing and refining industries that could export higher-value mining products.
“The relaxation of export policies for certain mining commodities, such as laterite iron concentrate, copper concentrate, zinc concentrate, lead concentrate, and anode slime, is crucial to ensure business certainty domestically, create a favorable business climate, and enhance the export of value-added products,” Budi concluded.
