JAKARTA, June 16 Indonesia plans to reverse a
rule that would have forced all tin solder exports to trade on a
local exchange from January next year, a trade ministry official
said, aiming to promote shipments by the world's biggest
exporter of the material.
In a bid to halt illegal mining and give Indonesia greater
control over prices, a regulation last August forced all tin
ingot shipments to trade via a local platform before being
exported. Tin solder was exempted until January 2015.
Tin exports plunged after the rule came into effect and
monthly exports of solder spiked as some companies sought to
avoid having to trade through a local exchange.
The government had discussed bringing forward the date for
tin solder to close the loophole, but has instead decided to
exempt it altogether in line with a broader government policy to
promote downstream industries.
"In the amendment of the tin export regulation, tin solder
will be freed from the obligation to be traded at a local
commodity exchange because tin solder is not considered as a raw
material anymore, but a finished product," said Thamrin
Latuconsina, export director for mining and industrial products.
The new regulation would hopefully be approved before the
presidential elections on July 9, Latuconsina said.
In May, Indonesia exported 11,540 tonnes of tin ingots, 464
tonnes of solder, and 775 tonnes of refined tin in other forms,
said the official, a trade ministry official said.
The new tin regulation will also make changes to the
standards and specifications for four types of exports - ingot,
pure and non ingot, solder and tin in other form - added Bachrul
Chairi, director general of foreign trade, who did not elaborate
Indonesia's government has put in place various policies
aimed at adding value to its exports by promoting downstream
industries and shifting the economy away from merely being an
exporter of raw materials.
(Reporting by Yayat Supriatna; writing by Michael Taylor;
Editing by Richard Pullin)