PART OF THE ENERGY & MINING INDONESIA SERIES 2013

Co-located with:
– Electric, Power & Renewable Energy Indonesia
– Building & Infrastructure Indonesia

Mining Sector One of the Biggest in the World
The Mining sector is important to Indonesia. It is a significant provider of export earnings, economic activity and employment whilst supporting regional development. Indonesia is one of the world’s largest producers of tin, coal and copper and makes a huge contribution to the Indonesian economy, accounting for 11.54% of GDP.

Coal Mining to Expand
Executive director of the Indonesian Coal Mining Association (APBI), Supriatna Suhala, said “global energy demand is prompting many coal miners to ramp up production and pushing non-energy companies to expand into coal mining”. More countries, he said, such as Kenya, Bangladesh and Pakistan, were seeking to import coal from Indonesia. Minerals and related products represent 19% of Indonesia’s total exports, with gold being the largest revenue earner.

Added Value Opportunities: Raw Materials must be Processed for Export
By 2014 miners will be obliged to export only processed materials. The incoming law, which comes into effect in 2014, orders all miners to process raw commodities, ranging from precious metals like gold to base metals like tin, before being shipped overseas thus creating a renewed need for mining technology.

Investment Grade Ranking will help to reduce mining costs
Foreign direct investment (FDI) in Indonesia is expected to rise further after two international credit rating agencies upgraded Southeast Asia’s largest economy’s sovereign rating to investment grade. This should reduce the cost of financing mining projects in Indonesia. In 2011 18.58 percent of foreign investment of was channelled into mining.

Mining goes Underground
Projects for mining underground are on the increase due to environmental issues in Indonesia.