• New Mining Law of Indonesia: 3 New Smelters Ready for Production in 2014

    The BKPM announced that three processing and mineral concentrate refineries (smelters) are in the construction phase and expected to be ready for production in Indonesia this year. Two of the three smelters will process and purify iron ore while the third will process bauxite ore into chemical grade alumina. The three smelters are owned by Indonesia Chemical Alumina. This company, a joint venture between Aneka Tambang (Antam) and Japan, operates in West Kalimantan.

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  • Indonesia Received Record Amount of Direct Investments in 2013

    On Tuesday (21/01), the Indonesia Investment Coordinating Board (BKPM) announced that investments in Indonesia grew 27 percent to IDR 398.6 trillion (USD $33 billion) in 2013, thus exceeding the target that was set at the start of the year (IDR 390 trillion). This result, which is a new record high for Southeast Asia's largest economy, was supported by a 39 percent increase in domestic direct investment (IDR 128.2 trillion) and a 22 percent increase in foreign direct investment (IDR 272.6 trillion).

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  • Indonesia Attracts Investments in Car Components Worth USD $1.5B

    In 2014, Indonesia is expected to see capital inflow of between USD $1 billion and USD $1.5 billion of funds for investments in the country's car components industry. About 20 to 30 companies are eager to expand or start business in this sector of Southeast Asia's largest economy (each investing about USD $50 million). Indonesia's car industry is attractive due to record high car sales in recent years (triggered by strong domestic GDP per capita growth) as well as double-digit export growth (although coming from a low base).

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  • Softer Rules but Unclarity Remains about Indonesia's Ore Export Ban

    On Sunday (12/01), one of the most important new laws in the recent history of Indonesia came in force. Mining Law Nr.4/2009, which prohibits the export of unprocessed minerals from Southeast Asia's largest economy, was implemented. However, it was not implemented in its original form. The president of Indonesia, Susilo Bambang Yudhoyono, signed a last-minute regulation which softens the impact of the new law by allowing mining companies to continue exports of copper, manganese, zinc, lead and iron ore concentrate until 2017.

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The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer
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