JAKARTA, Indonesia — An Indonesian law banning the export of unprocessed minerals took effect Sunday.

Coordinating Economic Minister Hatta Rajasa said the export ban is intended to add value to mineral exports by having them processed in Indonesia and creating more jobs.

The announcement that the law would take effect came late Saturday after days of intense negotiations involving government officials, entrepreneurs and experts to explore ways to minimize the impact of the ban.

“The president has signed a decree stipulating that beginning Jan. 12, all raw mineral or ores are banned from being exported,” Rajasa said after a limited cabinet meeting led by President Susilo Bambang Yudhoyono at his private residence in the southern outskirts of the capital Jakarta.

He did not mention any exemptions but said the decision took into account concerns about preventing mass layoffs, promoting regional economic development and enabling local mining companies to continue operating. He added that a number of regulations will be issued by related ministries regarding implementing the ban.

The ban is mandated by a Mining Law passed by Parliament in 2009 which included a provision that mineral ores must be processed at smelters in Indonesia starting on Jan. 12, 2014. Mining companies PT Freeport Indonesia and PT Newmont Nusa Tenggara, have warned that they will have to lay off thousands of their workers if the law was imposed without exemptions.


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