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Mining in Indonesia: Regulation Changes Increase Energy and Smelter Deployment Success

The much-debated Indonesian mining regulation (Government Regulation No. 23/2010) was revised for a fourth time in January 2017. The change has left many wondering what the impacts mean to Indonesian miners in the short and long term.

Bans on the export of certain metal mineral concentrates and unprocessed nickel and bauxite ores have been eased. The regulation, prior to January, was designed to encourage miners to build smelters and process locally before exporting.

The industry requirements have been eased for the next five years but have not gone away. The government has instituted annual inspections where mineral operators must continue to demonstrate progress on the deployment of energy and smelting infrastructure to allow for continued permitting during this leeway period.

@black_veatch