Indonesian Chamber of Commerce and Industry (KADIN) diminished concern over the possible negative effect of the government's planned export ban policy on all mineral ores, saying that it was going to scale up investment in the sector, senior official of the chamber said here on Thursday.

Deputy Chairman of KADIN Didie Suwondo said that the bar of shipment of raw mining products would lead the prices of the commodities soar at the offshore market as the supply at the market would decline.

"Hence the profitability of the miners in the country is going to rise," he told a press conference at JW. Marriot Hotel.

"This would bode well for investment, and many investors would come into our country," said Didie.

The natural resources-rich Indonesia plans to impose a total export ban on all mineral ores on Jan. 12, 2014 in an attempt to add value of the commodities before being sold to offshore markets.

Since May 2012, the government has applied a bar on exportation of 65 raw mining products unless miners insisted to construct smelter and pay a 20-percent export tax.

The deputy chairman admitted that the export prohibition would incur profit loss to miners.

For example, the deputy chairman said that the nickel and bauxite miners were going to suffer losses of 3 billion U.S. dollar per year after the policy took effect.

Nevertheless, in a long run, the decrease of export volume may hike the prices of the commodities, which could cancel out the loss, said Didie. Endi

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