Mining
From The Report: Indonesia 2018
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Considered a powerhouse in the realm of mineral production, Indonesia’s mining sector has long served as a key pillar of economic expansion, acting as a significant contributor to GDP by attracting much-needed export dollars, while also creating employment opportunities across the nation’s diverse landscape. However, soft commodity prices, declining demand from China and regulatory changes intended to promote the down-stream industry have seen the sector’s contribution decline in recent years. Despite this trend, the country’s substantial mineral and coal reserves remain attractive assets. In order to further monetise these resources and create more viable investment opportunities, policymakers are addressing regulatory shortcomings, and reducing the perceived risk of investing in the country.

Articles from this Chapter

Overview

Balancing act: Low commodity prices and a drive to bolster downstream activity require a nuanced approach to sector policy
OBG
plus

Considered a powerhouse in the realm of mineral production, Indonesia’s mining sector has long served as a key pillar of economic expansion, acting as a significant contributor to GDP by attracting much-needed export dollars, while also creating employment opportunities across the nation’s diverse landscape. However, soft commodity prices, declining demand from China and regulatory changes intended to promote the downstream industry have seen the sector’s contribution decline in recent…

Analysis

All eyes on coal: Global trends and domestic power initiatives are boosting production
OBG
plus

While China’s decision to reduce coal production has pushed up prices more quickly than expected, local demand for coal in Indonesia continues to rise on the back of ambitious power generation targets. While the coal mining sector still holds much promise for the nation, a lack of coordination between the central and regional governments has created a fragmented playing field of thousands of smallholders who owe millions of dollars in taxes. As such, the Ministry of Energy and Mineral Resources…