JAKARTA (TheInsiderStories) – Indonesian government decides to rise the Export Benchmark Prices (EBP) of mining products and some of the commodities charged by export duty (ED) in the period of March 2019 compared to the previous month, said senior minister today (03/01).
According to Director General of Foreign Trade Oke Nurwan, this is strongly influenced by the fluctuation of international price of mining products and commodity goods such as Crude Palm Oil (CPO).
There are many number of mining products imposed by ED 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 that has been washed.
“EBP of several mining products such as copper concentrate, lead concentrate, zinc concentrate, rutile, nickel and bauxite concentrates has increased,” he said, referring to Minister of Trade Regulation No. 15 of 2019.
Nurwan explained, the calculation of the basic price of EBP for iron concentrate commodities, laterite iron concentrate, iron sand concentrate, manganese concentrate, ilmenite concentrate, and rutile concentrate came from Asian Metal. While copper concentrates, iron sand concentrate pellets, lead concentrates, zinc, nickel and bauxite concentrates from the London Metal Exchange (LME).
Compared to the previous period, mining products that experienced an average price increase in the period of March 2019 were copper concentrate with an average price of US$2.264,75/WE, up by 2.42 percent, lead concentrate $845.90/WE or increased by 4.62 percent, zinc concentrate $724.98/WE, up by 10.48 percent, rutile concentrate $890.48/WE or increased by 0.80 percent, nickel $17.71/WE or increased by 10.82 percent, and bauxite that has been washed $25.08/WE or up by 0.18 percent.
Whereas the product that got a decrease was manganese concentrate set at an average price of $ 281.06/WE, or down 5.31 percent and ilmenite concentrate $ 213.38/WE or down by 0.05 percent.
Meanwhile, iron concentrate (hematite, magnetite), laterite iron concentrate (gutite, hematite, magnetite), concentrate iron sand (lamela magnetite-ilmenite) and pellet iron sand concentrate (lamella magnetite-ilmenite) didn’t change.
As well as, the reference price of CPO products for March 2019 period is $595.98/MT, or rose 5.41 percent from the February 2019 period which amounted to $565.40/MT.
“At present the CPO reference price remains below the level of $ 750/MT. For this reason, the government imposes ED CPO of $ 0/MT for the period of March 2019,” Nurwan said, referring to Minister of Finance Regulation No. 13/PMK.010/2017 which set at zero tax or equal to the previous period.
But a different case happened to the pricing of the commodity of cocoa beans. Reported that the reference price of cocoa beans in Feb. 2019 fell by $ 110.62 or 4.70 percent, from $ 2,352.60/MT to $ 2,241.76/MT.
This impacted by the determination of the EBP of cocoa beans which fell $ 108 or 5.2 percent from $ 2,069/MT in the previous month to $ 1,961/MT in March 2019.
However, Nurwan stated that the decline in the price of cocoa beans did not affect the export duty of cocoa beans which remained 5 percent. Like the commodity of wood products and leather products, there was no change from the previous month’s period.
Written by Daniel Deha, Email: email@example.com