Below is a list with tagged columns and company profiles.

Latest Reports Mining

  • Indonesia Investments' Newsletter of 22 June 2014 Released

    On 22 June 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic topics such as an analysis of the rupiah performance, forecasts for inflation and the trade balance, the presidential election, governance in the mining industry, and more.

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  • New Mining Law of Indonesia: Construction of many Smelters Delayed

    The construction of smelting and refining facilities in Indonesia - as stipulated in the new and controversial 2009 Mining Law - remains troublesome because several mining companies have delayed construction pending the judicial review of the 2009 Mining Law by the Constitutional Court of Indonesia. Meanwhile, Indonesia's Association of Bauxite and Iron ore Entrepreneurs (APB3I) said that the construction of 5 bauxite smelters need to be postponed due to financial uncertainties.

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  • Mining in Indonesia: Newmont Nusa Tenggara’s Ore Concentrate Export

    Indonesia's Minister for Energy and Mineral Resources Jero Wacik opened the possibility for Newmont Nusa Tenggara, subsidiary of US-based gold miner Newmont Mining Corporation, to resume exports of ore concentrates, provided that Newmont shows its commitment to build a smelter in Indonesia as in accordance with the new and controversial 2009 Mining Law. One of the targets of this new law is to boost Indonesia’s downstream mining industry by prohibiting export of unprocessed minerals.

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  • Weak Governance in Indonesian Mining Sector: Overlapping Mining Areas

    R. Sukhyar, Director of Mineral and Coal at the Indonesian Energy and Mineral Resources Ministry said that 184 mining business licenses (Indonesian: Izin Usaha Pertambangan, or IUP), needed for exploration and mining activities, have been revoked this June because of overlapping mining areas and illegal administration. The revoked permits concerned mining areas in Jambi (99 revoked licenses), South Sumatra (83), and South Sulawesi (2). This case is another illustration of weak governance in Southeast Asia’s largest economy.

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  • Pertamina Hulu Energi Appointed as New Operator of Siak Oil Block in Riau

    Pertamina Hulu Energi, subsidiary of state-owned energy firm Pertamina, has been officially appointed as the new operator of the Siak oil block in Riau (Sumatra) after the contract of Chevron Siak Indonesia (CSI) had expired on 27 November 2013. The Indonesian government decided not to renew the production sharing contract (PSC) with Chevron, instead appointing Pertamina Hulu Energi as new operator of the oil block (in line with the government's aim to have more domestic control over the country's natural resources).

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  • Freeport Indonesia and Newmont Nusa Tenggara Build Processing Facilities

    R. Sukhyar, Director General for Coal and Mineral Resources at the Indonesian Ministry of Energy and Mineral Resources, said that Freeport Indonesia and Newmont Nusa Tenggara, two of the largest copper miners in Indonesia, have shown their commitment to build refining facilities (in line with the 2009 Mining Law) by agreeing to transfer a total of USD $140 million to the government as a deposit guarantee. Freeport will transfer USD $115 million, whereas Newmont will transfer the remaining USD $25 million.

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  • Company Profile of Vale Indonesia: Indonesia's Largest Nickel Producer

    Indonesia Investments updated the company profile of PT Vale Indonesia Tbk. Vale Indonesia, a subsidiary of the world's second-largest mining company headquartered in Brazil, is Indonesia's largest nickel producer. The company explores, mines, processes and produces nickel in matte, an intermediate product, from lateritic ores at its mining and processing facilities near Sorowako on the island of Sulawesi. At end 2013, Vale Indonesia had proven mineral reserves amounting to 94.2 million metric tons (Mt) and probable mineral reserves of 33.3 million Mt.

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  • Preparing Strategies to Tackle the Japan-Indonesia Export Ban Conflict

    The government of Indonesia has been preparing strategies to face Japan's possible complaint to the World Trade Organization (WTO) about Indonesia's recently introduced export ban of mineral ore (UU Minerba No. 4 - 2009). A special team from Indonesia's Trade Ministry, headed by Gusmardi Bustami, has been set up to handle the dispute. Japan feels forced to bring the export ban case to the WTO because its industry is highly dependent on the supply of certain raw Indonesian commodities, particularly nickel.

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  • External Debt of Indonesia Grew 7.4 Percent in February 2014

    Indonesia’s external debt in February 2014 amounted to USD $272.1 billion, thus having increased 7.4 percent (year-on-year) from the same month a year earlier. Outstanding external debt as of end-February 2014 consisted of public sector debt (USD $129.0 billion) and private sector debt (USD $143.1 billion). The growth pace of Indonesia's external debt in February 2014 was slightly higher than the 7.2 percent (yoy) growth pace recorded in January 2014. These data were taken from Bank Indonesia's website.

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  • Japan to World Trade Organization over Indonesia's Mineral Export Ban

    The government of Japan is most likely to file a complaint to the World Trade Organization (WTO) about Indonesia's recently introduced ban on the export of mineral ore (UU Minerba No. 4 - 2009). Although the WTO is yet to receive a formal letter of protest, Indonesian newspaper Investor Daily reported on Friday (04/04) that Trade Minister Muhammad Lutfi has already received a letter from Japan's Minister of Foreign Affairs in which the step was announced. Japan feels forced to bring the case to the WTO as its industry is affected by the ban.

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Latest Columns Mining

  • Will the Indonesian Government Become Majority Shareholder of Nickel Miner Vale Indonesia?

    Will the Indonesian Government Become Majority Shareholder of Nickel Miner Vale Indonesia?

    Over the past decade we have seen some examples of protectionist tendencies in the mining sector of Indonesia. For example, gold and copper miner Freeport Indonesia came under Indonesian control in late-2018 after the state acquired a 52.1 percent stake in the company as a consequence of renegotiations (which also involved the extension of the company’s mining permits in Indonesia).

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  • Bauxite Ore Export Ban; Developing a Domestic Mineral Refining & Processing Industry in Indonesia

    Bauxite Ore Export Ban; Developing a Domestic Mineral Refining & Processing Industry in Indonesia

    On 10 June 2023 the Indonesian government imposed a ban on bauxite ore exports in a bid to encourage the development of a domestic bauxite processing and refining industry. This move was not a surprise. Over the past couple of years, government officials had mentioned their desire to ban bauxite ore exports from June 2023. And in December 2022 it was Indonesian President Joko Widodo himself who reaffirmed this ambition.

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  • Revision of Indonesia’s Controversial 2009 Mining Law; Better, Same, or Worse?

    Whenever Indonesia Investments discusses or illustrates the risks that are involved in Indonesia’s investment environment, we usually take the 2009 Mining Law as an example to illustrate the lack of legal certainty in Indonesia. Lack of legal certainty is one the key obstacles in Indonesia’s investment environment, and has therefore been undermining investment realization in Indonesia.

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  • Coal Mining Update: Contract Extension Relaxation, Price Pressures & the Government’s Dilemma

    By revising Indonesian Government Regulation No. 23/2010, the Indonesian government plans to provide local coal miners more certainty by allowing an earlier submission of a request for the extension of mining concessions. Stakeholders in the mining sector argue that this would considerably strengthen the nation’s investment climate, specifically the coal mining industry, on the back of improved legal certainty.

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  • Freeport McMoRan and Indonesia Reach Agreement on Stake, or Did They?

    After years of struggle and negotiations there now seems light at the end of the tunnel for the Indonesian government and US mining giant Freeport-McMoRan Inc. Both sides signed a Head of Agreement on Thursday 12 July 2018 that will give Indonesia’s state-owned mining company Indonesia Asahan Aluminum (better known as Inalum) and the local government of Papua a 51.23 percent stake in Freeport Indonesia, implying the company - the operator of the Grasberg mine, which is the world’s largest gold mine and second-largest copper mine – will come under Indonesian control.

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  • Indonesian Mining Companies in Focus: Aneka Tambang (Antam)

    One of the companies, listed on the Indonesia Stock Exchange, that is experiencing a very good performance so far in 2018 is vertically integrated and diversified mining and metals company Aneka Tambang, a state-controlled entity. Not only did the company's corporate earnings and production figures surged in the first quarter of 2018 on the back of stronger commodity prices (and rising demand), but shares of Aneka Tambang also soared - by a whopping 45.60 percent - up to Friday (22/06).

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  • Indonesian Heavy Equipment Distributors in Focus: Intraco Penta

    Indonesian heavy equipment distributor Intraco Penta is optimistic that its corporate earnings will improve in 2018 and 2019 on the back of rising coal prices and the so-called "replacement cycle". Ferdinand Dion, Investor Relations Strategist at Intraco Penta, said every five years mining companies tend to replace those heavy equipment units that have been consistently used for the past five years.

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