PERHAPI Conference

GENERAL TOPIC: Mining Added Value Policies and Strategies: Gone Today, Here Tomorrow

Thursday, 20 October 2016

BACKGROUND:

Government Law No.4 / 2009 about Mineral and Coal Mining requires mining companies in order to build domestic mineral processing and refining facilities during the regulation implementation process, the government has frequently revised the minimum level of mining product to export and the deadline to conduct this project. Now, the current economic downturn where the fluctuation of mineral price become a big challenge for this regulation to be implemented in the future. So how this regulation would be look likes?

The regulation has a motive to increase mining added value as well as to stimulate downstream industries in Indonesia. The benefits of this regulation as follows:

  • Increasing mining added value
  • Increasing multi player effect: employment, infrastructure, downstream industries

However, there are some obstacles that could delay the implementation as follows:

  • Low economic feasibility : Less profit, high technology, lack of infrastructure and energy.
  • Overlapping of permit and regulation
  • Long term investment & operation certainty for mining company

Therefore, it requires reliable strategy and policy to sustained and attract the investment to become competitive advantage of mining industry for Indonesia.

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