Indonesian Minerals Policy Case Study

Recommendation
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.

Methodology
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.

Outcome
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.