IFCCI has organized a Forum Group Discussion: The Outlook for the Indonesian Mining Sector in 2015- “Policy and Regulatory Perspective”.
on April 1st, 2015 at Atanaya Room 2, Hotel Atlet Century Park - Jakarta
Indonesia is one of the world’s most larger producer of tin, nickel, copper, bauxite and gold. There is no doubt that the mining sector has been one of the key sectors supporting Indonesia’s economic growth for a number of years. This sector makes a significant contribution to Indonesian GDP, exports, government revenues, employment and, perhaps most importantly, the economic development of the remote regions where mining operations are located. Therefore, there are many things that we have to acknowledge about the mining future in our country.
In current years, we know mining companies and industry are facing difficult financial conditions due to low commodity prices, capacity of mining companies to pay much increased royalty rates is questionable. Even more, mining activities have been experiencing largely irrelevant previous profitability.
In this forum group discussion we have recognized that we have to be realistic about what current government can do politically and change the rules and the regulations regarding this mining sector. Amongst the challenges encountered in this sector are to encourage more mining activity, to increase the export demand opportunities and the hope that the government would not make residual risk, which is the quick changes in necessary mining policies. The alternatives to generate more revenue from the mining industry sector is to increase taxes, efficient in collecting taxes, and encourage more mining activity through better policies
Thank you to Mr. Bill Sullivan, Legal Foreign Partners from Christian Teo Purwono & Partner (associate with Stephenson Harwood LLP), Mr. Martiono Hadianto, Chairman of Indonesian Mining Association and President Director of PT. Newmont Nusa Tenggara and also Mr. Helmi Maemozax Board Advisor of IFCCI from Ilham Treda Industry took part as a moderator.
We believe the participants found the discussion informative. Thus, we appreciate the valuable contribution of each speaker’s presentation which have given us a better understanding of the Indonesian mining sector condition.
Once again, thank you for those who attended this interactive group discussion. We look forward to having another insightful discussion with all of you in the next IFCCI forum group discussion or seminars.