Freeport Indonesia, an American-owned miner, faced adverse consequences in the banning of exports of raw mineral ores by the Indonesian government. Papua, located in Indonesia, has the world’s fifth largest copper mine. Many large mining industries from all over the world are highly dependent on mining in Indonesia for many years now. This includes Freeport, which is a premier US-based natural resource company. However, Freeport has been exporting most of the copper as concentrate to escape from government taxes in Indonesia. I believe that this is a form of unethical business, as tax revenue will decrease and the funds for public services in Indonesia such as healthcare will be reduced, thus Indonesian people will be at a disadvantage. Therefore, the Indonesian government implemented a new regulation for Freeport to build their own smelter in Indonesia by raising taxes and can export only processed minerals. I strongly believe that this has many positive effects on Indonesia, as there will be an increase in domestic employment through the building of new smelters. Also, tax revenue will increase and hence the standard of living will also increase. A better infrastructure around the mining area will also be beneficial to the mining industries.

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