Mining

Long a stalwart of Indonesia’s economic development, particularly in terms of exports, the country’s mining and quarrying industry maintains a steady presence despite fluctuations in global commodity prices and domestic mining policies. Claiming some of the world’s most expansive reserves of valuable minerals and largest operational mines, the sector has seen some of the highest levels of investment of any industry in Indonesia’s economy in recent years. Uncertainties regarding legislation, along with the implausibility of the full implementation will likely remain after Indonesian elections in 2014 as the politically and socially sensitive ramifications of these issues give politicians little incentive to reform these policies ahead of a campaign. However, the country’s vast mineral reserves combined with an expected rebound in global demand and commodity prices should help to ensure that the current production downturn proves to be little more than a temporary blip. This chapter contains interviews with Rozik B Soetjipto, President Director, Freeport Indonesia; Alwinsyah Lubis, President Director, Antam; and a viewpoint from Colin Ong, Managing Partner, Dr Colin Ong Legal Services and President Arbitration Association Brunei Darussalam.