JAKARTA (TheInsiderStories) – Ministry of Trade set the benchmark of export levy for mining and palm oil products based on the international price fluctuations for October, 2018. Based on the ministry statement, some commodities experienced an increase and some experienced a decline compared to last September.
“Benchmark price of several mining products has increased due to international price fluctuations. Only copper concentrate products, lead concentrates, zinc concentrates, rutile concentrates and nickel have decreased,” said Director General of Foreign Trade, Okay Nurwan, in a written statement today (28/09).
A number of mining products imposed export levy are copper concentrate, iron concentrate, laterite iron concentrate, iron sand concentrate, iron sand concentrate pellet, manganese concentrate, lead concentrate, zinc concentrate, ilmenite concentrate, rutile concentrate, nickel, and bauxite which have been washed.
Calculation of the export levy base on the price for iron concentrate, laterite iron concentrate, iron sand concentrate, manganese concentrate, ilmenite concentrate, and Asian sour rutile concentrate metal. While copper concentrates, iron sand concentrate pellets, lead concentrates, zinc concentrates, nickel and bauxite are sourced from the London Metal Exchange.
Compared to the previous month, most of the products increased in the period of October 2018. The iron concentrate (hematite, magnetite) (Fe ≥ 62 percent) in the October 2018 period was set at an average price of US$46.41/WE or increased by 2.23 percent. Laterite iron concentrate (gutite, hematite, magnetite) with levels (Fe ≥ 50 percent and (Al2O3 + SiO3) ≥ 10 percent) with an average price of $23.71/WE or an increase of 2.23 percent.
While, manganese concentrate (Mn ≥ 49 percent) with an average price of $318.88/WE or an increase of 0.18 percent. Iron sand concentrate (magnetite-ilmenite lamella) (Fe ≥56 percent) with an average price of $27.71/WE or an increase of 2.23 percent. Ilmenite concentrate (TiO2 ≥45 percent) with an average price of $205.86/WE or an increase of 3.00 percent. And bauxite (Al2O3 ≥ 42 percent) with an average price of $27.55/WE or an increase of 20.72 percent.
While the products that experienced a decline compared to the previous period of HPE were copper concentrate (Cu ≥ 15 percent) with an average price of $2,152.11/WE or a decrease of 2.05 percent. Lead concentrate (Pb ≥ 56 percent) with an average price $839.57/WE or down 2.94 percent.
Zinc concentrate (Zn ≥ 51 percent) with an average price of $631.36/WE or a decrease of 5.79 percent. Rutile concentrate (TiO2 2 90 percent) with the average price is $896.28/WE or down by 0.28 percent. Nickel (Ni <1.7 percent) with an average price of $18.53 / WE or a decrease of 5.22 percent. While, iron sand concentrate pellets (magnetite-ilmenite lamellae) (Fe ≥ 54 percent) did not change.
According to Nurwan, the stipulation of export benchmark price for the October period was determined after considering various written inputs and coordination from various related agencies.
Furthermore he said, the reference price for Crude Palm Oil (CPO) products for the determination of export levy is $602.34 per metric ton (MT). The reference price weakened by $1.60 or 0.27 percent from the September period of $603.94/MT.
“At the moment the CPO reference price has weakened again and is below the level of $750/MT. For this reason, the government is using export levy for CPO zero for the period October 2018 or same with September period,” added by Nurwan.
Meanwhile, the reference price of cocoa beans in October 2018 again experienced an increase of $132.85 or 6.14 percent, from $2,163.67/MT to $2,296.52/MT. This resulted in the determination of the export levy of cocoa beans which rose by $129 or 6.84 percent from $1,885/MT in the period of the previous month to $2,014/MT in October.
The increase in reference prices and export tax of cocoa beans is due to the strengthening of international prices. This increase did not have an impact on the cocoa beans levy which remained 5 percent.
For timber products and leather products did not change from the previous month period. Export levy for plywood products and leather products are listed in Appendix II Letter A Ministerial Regulation Finance No. 13/PMK.010/2017.
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