Mining
From The Report: Indonesia 2017
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As the top nickel producer globally in 2013, the second-biggest coal exporter in 2015 and host to one of the largest copper and gold mines in the world, Indonesia has the capacity to compete with the most prolific mining nations. However, this potential has not necessarily been translated into strong production figures in recent times, and the domestic mining sector has suffered markedly over the past three years due to deteriorating global commodity prices and, more specifically, slowing growth in China, the leading purchaser of Indonesia’s mineral and coal products. Efforts to increase downstream production should be supported by the state’s infrastructure investment programme, while any recovery in the current downturn in commodity prices will boost the industry’s outlook.

This chapter contains an interview with Pandu Sjahrir, Chairman, Indonesian Coal Mining Association.

Articles from this Chapter

Overview

Rooted in reform: Developing the downstream segment remains the state’s focus
OBG
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As the top nickel producer globally in 2013, the second-biggest coal exporter in 2015 and host to one of the largest copper and gold mines in the world, Indonesia has the capacity to compete with the most prolific mining nations. However, this potential has not necessarily been translated into strong production figures in recent times, and the domestic mining sector has suffered markedly over the past three years due to deteriorating global commodity prices and, more specifically, slowing growth…

Interview

Meeting demand: OBG talks to Pandu Sjahrir, Chairman, Indonesian Coal Mining Association
OBG
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Interview:Pandu Sjahrir What policies are needed to boost private investment for the 35-GW power plan? PANDU SJAHRIR: The plan for 35 GW will cost roughly $1.5m per MW, which means an investment of $50bn-60bn is required. Out of that, 50-60% has to be coal-related power, which is roughly $25bn-30bn. Given that the plan is targeted over a five-year period, the figure is roughly $5bn-7bn per year for coal power investment. Capital expenditures for Indonesian mining reached its peak in 2011…

Analysis

Heading downstream: Larger corporates weather low commodity prices and achieve progress in developing processing and refining facilities
OBG
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Nowhere else in Indonesia’s economy are the costs and benefits of government efforts to boost value-added industries more apparent than in the mining sector. In the past, the state was content to allow international and domestic outfits a degree of latitude in determining the most effective way to profit from the extraction of lucrative mineral deposits, as it reaped benefits from the various taxes, licences and royalties. However, the status quo changed dramatically when the Ministry of Energy…