Mining

Largely impervious to recent economic woes in the developed economies, Indonesia’s mining sector is riding high on a wave of high commodity prices. Meanwhile, the government has undertaken to revise regulations governing the sector in a bid to improve clarity and attract more investors. However, parliamentary opposition to some of the changes, including the removal of a requirement that foreign mining companies divest a majority of their companies to Indonesian entities, has resulted in uncertainty. Moreover, the government has clashed with mining companies over a measure that would require 99% refinement of all exports within five years of beginning production. Final clarification will be necessary to enable full investor confidence in this key sector. This chapter includes an interview with Martiono Hadianto, President Director, Newmont and Chairman, Indonesia Mining Association (IMA).