JAKARTA (TheInsiderStories) - Indonesian government noted the realization of investment in mining sector was only US$2.88 billion until October, amid the impact of the COVID-19 pandemic, said the official on Tuesday (11/10). This year, the energy and mineral resources (EMR) ministry targeting to bring an investment $7.74 billion in these sector.
“The achievement is only 37 percent of the targets. Still far from the 2020 target. The biggest impact because several projects were halted due to the COVID-19,” said special staff at the ministry, Irwandy, in a webinar on Tuesday (11/10).
In the last two years, he continued, the realization investment always exceeded the target. For an example, in 2018, the realization of coal and mineral investment reached 101 percent and last year was $ 6.5 billion or 105 percent of the target.
The achievement in the past year consisted of mining service business permits with a 39 percent share, investment in infrastructure and machinery 30 percent, intangible assets 13 percent, and investment in buildings, ships, vehicles and other tools by 23 percent.
Irwandy said, the government was working to overcome the impact of pandemic while simultaneously boosting the realization investment. Together with the mining association, the government intensify the diplomacy with trading partners.
Based on the government data, in 2021 the investment in mining sectors lowering to $5.69 billion compared to this year’ target. In 2022, its estimated to fall back to $4.35 billion, $3.22 billion in 2023, and drops to $3.17 billion in 2024.
In 2015, the realization investment on the two sectors worth of $5.26 billion from the targeted $6.14 billion. Then, in 2016 jumped to $7.28 billion, but dropped again in 2017 of $6.13 billion. In 2018, the realization rose again to $7.48 billion and last year alone, lowered to $6.5 billion.
According to chairman of the Indonesian Mining Expert Association, Rizal Kasli, the declining also triggered by the completion of some smelters in 2022. He asserted, an effort to drive the investment is create a conducive and competitive conditions for the mining industry, especially on legal certainty, guarantees, simplification of bureaucracy and permits, cutting the length of obtaining licenses, access to land, taxes and a competitive tariffs.
To spur the investment in these sectors, the parliament has passed mining law to replace the law Number 4 of 2009. According to EMR minister, Arifin Tasrif, there are 13 points in this revision, consisting of six government proposals and seven government and parliament proposals.
“First is solving inter-sectoral problems. Second, strengthening the concept of mining areas. Third, strengthening the added value policy,” he noted.
Fourth, is to encourage exploration activities for the discovery of mineral deposits. Fifth, a clearer arrangement for the change of Work Contract or Coal Mining Work Agreement to a Special Mining Business License and sixth is the strengthening of state-owned enterprises.
In the new bill included the government’ role in fostering and overseeing the regional government, rearrangement of community mining licenses, and on special arrangements for concessionary permits.
“We also propose the rearrangement related to the period of Mining Business Permit or Special Mining Business Permit. The fifth proposals is a rearrangement related to the mining permit area,” said the minister.
Sixth, he went on, is to accommodate the ruling of the Constitutional Court and Law Number 23 of 2014 concerning Regional Government Law. Then, seventh is related to the environment, the minister adds.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
