Indonesian Minerals Policy Assessment Case Study
A potential investor in Indonesia’s mining sector commissioned Commodity Insights to understand the regulatory framework of the sector ahead of pursuing a transaction.
With a substantial fuel and non-fuel mineral resource base, long history of mining and a leading role as an exporter of coal, nickel and other minerals Indonesia remains a key player in the global mining industry. Global mining companies consistently rank Indonesia highly in terms of its coal and mineral prospects, yet assessments of the mining policy regime and the investment climate have not been so positive.
Whilst the 2009 Mining Law was aimed at removing a lot of the systemic bureaucratic issues hampering the industry, its unpredictable implementation and ongoing band-aid regulations along with controversial events (expropriation litigation) has left the sector in need of a further overhaul.
Building on our long-established position in Indonesia and experience with Indonesia’s mining legislation, we recommended a qualitative report focused on providing context so Indonesia’s often complex mining legislation with a particular focus on domestic processing.
We provided the client with a detailed overview of the legislative framework governing the Indonesian mining industry. This provided the client with the necessary information to make an informed assessment of the current Mining Law including considerations for investing in Indonesia.