The Minister of Trade issued, in May 2012, Regulation No. 33/MDAG/ PER/5/2012 concerning Rules and Procedures for the Determination of Export Benchmark Prices of Mining Products That Are Subject to Export Duties. The regulation is the implementation regulation of related provisions of Government Regulation No. 55 of 2008 concerning Export Duties on Export Goods, and of Minister of Finance Regulation No. 75/PMK.011/2012 concerning Determination of Export Goods That Are Subject to Export Duties and the Export Duty Tariffs.
Basically, this Minister of Trade’s regulation stipulates the following:
- The Minister of Trade delegates the authority to determine the export benchmark prices (Harga Patokan Ekspor or “HPE”) to the Director General;
- The HPE will be used for the determination by the Minister, of the export prices for the calculation of the Export Duties.
- The HPE is to be determined on the basis of:
- highest average price in the international market;
- highest average FOB (free on board) price;
- highest average price prevailing in the domestic market; or
- highest average price of the respective mining product in the importer’s country.
All of the above should be prices that prevail in the latest period before the determination of the HPE.
The list of the mining products that are subject to export duties is attached to the regulation. This regulation has been effective as of 28 May 2012.