TOWARDS A SUSTAINABLE MINERAL RESOURCES MANAGEMENT IN INDONESIA: CHALLENGES AND OPPORTUNITIES

INDONESIA MINING UPDATES 2012

SEMINAR, EXHIBITION AND TAMBANG AWARD

May 30 – 31, 2012

The Ritz-Carlton Hotel – Pacific Place, Jakarta

BACKGROUND

The mining sector is one of the most important segments in our national economy and has played significant roles in the country’s socioeconomic development. In addition to its contribution in terms of revenues, this sector also acts as prime-mover for regional development, sources of raw materials, sources of energy, and source of jobs, which lead to other economic multiplier effect. Mineral and coal resources as one of Indonesia’s non-renewable natural resources, should be managed properly in order to provide optimum contribution for the economic growth and human development in Indonesia. In this case, the Government and business players in mining sector is expected to work together in managing mineral and coal resources with the principles of conservation, environmental management, and also providing added-value. It is expected that the mining sector could increase economic and social welfare of the community.

Presently, while the country has seen positive economic growth and received the investment grade from the international perspective, the mining sector is facing some challenges, i.e. conflict with the local people, overlapping land issues, excessive issuance of mining permits, environmental issues, dispute on divestment, and mine workers’ strike. In the macro scale, there are also some major issues in the sector which remain unresolved, i.e. the renegotiation of mining contracts, reconciliation of IUPs, mineral added-value, and mining zone (WP) establishment. By the lack of coordination and comprehensive communication among related stakeholders and agencies, it have made such issues in this sector difficult to be resolved.
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