JAKARTA, Jan 10 (Reuters) - A proposed regulation to ease Indonesia’s imminent mineral export ban would still cut government revenue by as much as 10 trillion rupiah ($820.34 million) this year, the finance minister said on Friday.
“There is a potential of loss (in state revenue), but since commodity prices have declined last year the loss will not be that significant. It will be around 9.5 to 10 trillion rupiah,” Finance Minister Chatib Basri told reporters.
Indonesian government officials are scrambling to pass regulations to ease a ban on unprocessed mineral ore exports from Jan. 12. The regulations must be approved by the president.
The ban aims to boost Indonesia’s long-term return from its mineral wealth, but officials fear a short-term cut in foreign revenue could widen the current account deficit, which has undermined investor confidence and battered the rupiah. ($1 = 12,190 Indonesian rupiah) (Reporting by Rieka Rahadiana; Writing by Randy Fabi; Editing by Tom Hogue)