Professional Documents
Culture Documents
Agenda
2 3 4 5 6
INDONESIA MINING MAP IN THE INDONESIA INVESTMENT CONTEXT NEW MINING LAW (UU MINERBA) CONDITIONS AND ACTUAL CHALLENGES OF INDONESIA MINING INDUSTRY
CONCLUSION
26 0
kilometers
2000 19
27
4
6 7 1 2 3 4 5
11
22
19 18 21 0
kilometers
23
25 24 26
27 28
5
2000 20
NOTES Bauxite Gold Plaser Gold Manganese Nickel Iron sand Silver Copper Tin
COMMODITIES Tin (metal) Nickel Ore Copper (metal) Primary Gold (metal) Silver (metal) Iron Sand (concentrate) Bauxite (metal) Manganese (metal) Diamond Granite (non metal) Coal
UNIT Ton Ton Ton Ton Ton Ton Ton Ton Carat Ton Ton
RESOURCES 622,627 1,650,418,000 68,960,881 4,163 505,151 267,337,519 469,879,260 866,795 539,800 54,731,230,000 104,943,590,000
RESERVES 462,402 585,209,103 41,473,267 3,394 23,026 4,732,000 23,999,901 105,000 93,565 21,131,840,000
8
1650.42
1565.20
Pla Pla La Se Pri Pri La Ma ter ter dim ma ma ng cer cer i tic i tic an ry ry en Ch T it es Iro Ch Ti t tar Iro an rom e n rom an yI n iu m ite ium ro n ite
Or e
622626.93 505151.07
13031.00
100000 0 Tin Platinum
4162.55
123.00
Placer Gold Silver
Primary Gold
68.96
0.00008
5.99
3.00
0.21
1.30
648.87926
0.01
IRON PLACER
Millions 302.00
252.00
202.00
152.00
102.00
52.00
IRON ORE
Millions
2.00
2004
2005
2006 4,732,000
2007 4,732,000
165,108,739.9 267,337,519.3
2004 320,462,611
2005 320,462,611
30.00
25.00
20.00
NICKEL
Millions
15.00
10.00
5.00
Resources Reserves
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1. 15th rank of world coal reserve: Coal resources estimated around 104
billion tons with mineable reserve approximately 21 billion tons
2. 7th rank of world gold reserve: Gold resources estimated around 4,163
tons with mineable reserve approximately 3,394 tons
4. 5th rank of world tin reserve: Tin resources estimated around 0.622 million
tons with mineable reserve approximately 0.462 million tons
5. 8th rank of world nickel reserve: Nickel ore resources estimated around
1,650.4 million tons with mineable reserve approximately 585.2 million tons
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19
20
21
22
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Target
6.3 6.8% average per year 7 % average, 7.7 % by the year of 2014 4 6 % average per year 5 6 % by the end of 2014 8 10 % by the end of 2014 Rp. 1.950 trillion
Source : RPJMN 2010-2014 (Govt Reg. no 5, 2010)
2009 Growth (%) GDP (Rp Trilion) Infrastructure Demand 5% GDP (Rp. Triliun) 5.1 5,206.5 260.3
2013 7.3
2014 7.7
The mining industry is important to Indonesia. It is a substantial provider of export earnings, economic activity and employment, and support regional development. The government remain passionate about the potential untapped mining reserves in Indonesia. With some further improvements to the business environment there is no reason why this resource would not be developed and Indonesia could once again attracts more share of global mining exploration allocation. 2006 was another spectacular year for the mining industry, both in Indonesia and globally-and with the commodity prices at their current highs, 2007 and 2008 will see even better financial results. Globally, investor confidence in the sector and its prospects has remaining strong, fuelled by a sustained rise in commodity prices, and as witnessed by a year of significant growth in market capitalization on both international bourses and the Indonesian 25 exchange.
400
280 Million tonnes 320 220 150 130 170 150
370
300
193 196 147 198 148 50 150 75
225 145 48
240 150 90
200 100 0
150
49
2006
Export
2007
Production
2008
2009
2010
2015
2020
2025
Domestic
Notes : - Production realization 2006 (32 PKP2B = 162 M ton, KP- PTBA = 9.2 M ton, 130 local KP = 22 M ton); - Production Increase at 2006 due to production capacity increase of PKP2B 10 M ton ( PT Adaro Indonesia, PT KPC and PT Indominco Mandiri) and production increase of local KP 12 M ton; - 2007-2010 acceleration of generating coal Powerplant 10.000 MW - Government Reg No.5/2005 about National Energy Policy, 2025, coal domestic market for 33% of production
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EKS.
SK.
KONTR
EKT.
TERM.
JUMLAH
2 1
PU.
19 21
EKS.
6 24
EKT. A/J.
2 6
12 28
O/M.
194 61
TERM.
235 141
JUMLAH
KP
50
299
433
85
1186
2061
PU = General Survey; EKS. = Exploration; SK = FS; KONT. = Construction; EKT. = Exploitation/Production; TERM. = Termination; KK = COW Generation 1 7 (1967 1998); PKP2B= Coal Contract, Generation 1 3 (1981 2000);
KP = Mining License coal and mineral A/J = Transportation and sales; O/M = Processing and refining;
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2006 1,125.91
29
31
Mining activities will be grouped into: mineral mining and coal mining Mineral mining will be grouped into: radio active mining, metal mining, non metal mining and rock mining Clarification of Central Government, Provincial and District Authority Establishing of Mining Zone; Mining Estate Establishing State Reserve for the special national interest. There are only mining license and mining special license, and mining agreement. There will be no more direct contract between company and government Foreign mining company may have an agreement with the State Owned Mining Company/Representative Agency to develop state 32 reserve
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ACTUAL CHALLENGES
Law uncertainty and business operation Overlapping of mining area with forestry area (Law 41/1999) Regional autonomy: duplication and contradictions between central and regional government regulations;, etc Taxation issues (tax incentives, VAT on gold and coal, corporate tax rate) Regional demand on the equality of income between central and regional and reattribution which is not stipulated in the contract Illegal mining Paradigm shift to triple bottom line A more stringent environmental standard Unfairness in divestment of foreign interests and mine closures. Implementation of Good Mining Practice.
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Mining commodity is transformed into human resources development and sustainable economic potential People living in the vicinity of mining area must get benefit from the existence of the mining Sustainable mining should be based on 3 pillars: economic, social and environmental sustainability
38 38
Conclusion
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REFERENCE
1. Bambang Setiawan 2. Dedy Aditya Sumanagara 3. Fraser Institute 4. Irwandy Arif 5. Price WaterhouseCoopers 6. Purnomo Yusgiantoro 7. Simon Sembiring 8. Darwin Zahedy Saleh
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Thank You