The Indonesian Mining Association (API-IMA) has highlighted the\nimportance of stability in financial obligations within the non-oil and\ngas mining sector amid various policy adjustments facing the industry.\nAccording to IMA, policy certainty is a crucial factor in maintaining\nthe investment climate and the sustainability of national mining\ncompanies\u2019 operations.<\/p>\n
The non-oil and gas mining industry is considered to have business\ncharacteristics that differ from the oil and gas sector, both in terms\nof business models, investment patterns, risk levels, regulations, and\npermitting mechanisms.<\/p>\n
\u201cThe non-oil and gas mining industry has unique characteristics with\nvarying levels of complexity for each commodity. This fundamental\ndifference is why many countries apply different royalty and fiscal\nsystems compared to the oil and gas sector,\u201d said API-IMA Executive\nDirector Sari Esayanti in an official statement on Saturday\n(9\/5\/2026).<\/p>\n
Sari explained that the non-oil and gas mining industry has a high\nlevel of complexity with differing characteristics for each commodity.\nTherefore, the fiscal policy approach and state revenue mechanisms in\nthe non-oil and gas mining sector are deemed unable to be equated with\nthe oil and gas sector.<\/p>\n
This is due to fundamental differences in business cycles, risk\nprofiles, cost structures, and operational mechanisms between the\nnon-oil and gas mining and oil and gas sectors.<\/p>\n
On the other hand, IMA emphasised that policy stability is one of the\nimportant factors in maintaining the sustainability of investment and\noperations in the national mining industry.<\/p>\n
\u201cWe hope for stability in financial obligations so that the\ninvestment climate remains maintained and mining operation\nsustainability can run well,\u201d said Sari.<\/p>\n
\u201cCurrently, the industry faces various policy adjustments such as\nchanges to DHE, royalties, HPM, export duties, and the implementation of\nB50, which further add to the operational challenges for mining\ncompanies,\u201d she added.<\/p>\n
In addition, the need for long-term investment to support national\ndownstream processing and the energy transition is also seen to require\nstable policy support.<\/p>\n
For information, the Indonesian Mining Association (API-IMA) was\nestablished on 29 May 1975 and is a non-governmental, non-political, and\nnon-profit organisation.<\/p>\n
IMA has more than 90 member companies consisting of company members\nand associate members. Company members are companies in the exploration\nand production of mining, while associate members are companies\nsupporting mining activities.<\/p>\n
IMA states that its members contribute 60 percent to the gross\ndomestic product (GDP) from coal mining and 80 percent to the GDP from\nmineral mining. In addition, IMA members are committed to implementing\nGood Mining Practices and prioritising environmental, social, and\ngovernance (ESG) aspects in their business practices.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/mining-industry-faces-increased-burdens-investment-certainty-in-the-spotlight-1778303019", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }