Mining industry has bright future, businessmen say<\/p>\n
JAKARTA (JP): The Indonesian mining industry is facing a
\nbright future due to the country's economic stability and the
\nconsistency of its regulatory framework, visiting foreign
\nbusiness leaders say.<\/p>\n
\"Indonesia's mining industry is growing very well because the
\ngovernment has been able to maintain the country's economic
\nstability for a long time,\" the executive director of the China
\nNational Gold Corporation, Hou Jian Ping, told The Jakarta Post
\nhere on Saturday.<\/p>\n
For foreign investors, economic stability is very important
\nbecause it will guarantee investments in the long-term, high-risk
\nmining industry, he said.<\/p>\n
Ping was here to attend the Fourth Asia-Pacific mining
\nconference and exhibition, organized by the ASEAN Federation of
\nMining Associations in cooperation with international mining
\ninstitutions.<\/p>\n
The four-day conference, officially opened by Minister of
\nMines and Energy I.B. Sudjana, closed on Saturday.<\/p>\n
Ping said he was optimistic that many Chinese mining companies
\nwill be interested in exploring opportunities for mining in
\nIndonesia in the future.<\/p>\n
\"My company, for example, will cooperate with PT Aneka Tambang
\ngold exploration in Kalimantan and Sumatra next year,\" he said.
\nHe expected that a deal on the cooperation will be finalized as
\nsoon as possible.<\/p>\n
Regulation<\/p>\n
A councilor of the Australasian Institute of Mining and
\nMetallurgy, Tony Osma, told the Post that he highly appreciated
\nthe Indonesian government's efforts to improve the regulatory
\nframework of the mining industry. The policy aims to attract more
\nforeign investments to the country.<\/p>\n
\"If you look back to the last decades, you can see how rapidly
\nthe changes have taken place in the Indonesian mining sector. The
\nPP20 regulatory package is a good example of the government's
\npragmatic approach to this matter,\" he said.<\/p>\n
Under the PP20 regulation, the government allows foreign
\ninvestors to hold 100 percent equity ownership, to construct and
\noperate infrastructure facilities and eases requirements on
\nreduction of equity ownership.<\/p>\n
Osma said he believes that Indonesia will be become the
\nbiggest mining producer in the world because it has a lot of
\nnatural resources to offer to foreign investors.<\/p>\n
Australian companies are now rushing to Indonesia to explore
\nfor various minerals, he said, adding that Australian companies
\ndominate venture cooperation in Indonesia, followed by Canada.<\/p>\n
He cited as examples that Kaltim Prima Coal, which operates a
\nmajor coal mine in East Kalimantan, and Kelian Equatorial Mining,
\nwhich operates a gold mine in the same province, are both
\ncontrolled by Australian investors.<\/p>\n
Incentives<\/p>\n
Ping suggested that the Indonesian government offer more
\nincentives and subsidies to foreign investors to operate in
\nfrontier areas.<\/p>\n
Jon Baird, an executive of the Canadian Association of Mining
\nEquipment and Services for Export, added that Indonesia should
\nimitate Australia in terms of tax policies, incentives and the
\nregulatory framework for attracting foreign investment.<\/p>\n
Mike Katz, an associate director of the Australian Key Center
\nfor Mines, said that Indonesia needs to develop mineral geologic
\nstudies for helping foreigners to identify the prospects of
\nminerals.<\/p>\n
\"Proper infrastructure and human resources are also important
\nfor the country's mining industry,\" he said.<\/p>\n
Nikolay Belakov, an executive of the Russian Coal Industry,
\nRosugol, told the Post that his company is looking for
\ncooperation with local companies for mining activities in
\nIndonesia. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mining-industry-has-bright-future-businessmen-say-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}