The Future of Indonesian Mining Activities after the Implementation Law Number 4 of 2009 Concerning Mineral and Coal

Mining (The New Mining Law)

Rezki Syahrir, Jan C. Bongaerts, Carsten Drebenstedt

Abstract Indonesia adopted a new mining policy with the Law No.4 of 2009 which will lead to some fundamental changes for the mining industry in Indonesia. This paper discusses the future of the mining industry in Indonesia after the implementation of the new law by means of a SWOT analysis. According to the analysis, after the implementation of the new law, both the mineral and coal industries have opportunities to grow in the long run. The obligation to process mined minerals domestically may generate fundamental changes in the mineral industry, bringing additional advantages for the country. The domestic coal market will rise due to the obligation for coal mine operators to meet national needs prior to exports. However, insufficiently competent public administrators and the lack of regulation of public participation mechanisms in mining may become inhibiting factors of the growth. Keywords: Indonesia, Mining Law, Minerals, Coal, SWOT Analysis