From: By From: The Jakarta Post, Jakarta
By Rangga D. Fadillah
Indonesia needs spend between US$500 million and $1 billion each year to fund exploration activities, to maintain the current level of mineral resource production, the Indonesian Mining Association announced on Tuesday.
Association chairman Martiono Hadianto, who is also the president director of PT Newmont Nusa Tenggara, said in the past decade Indonesia had allocated around $10 million annually to exploration to find new mineral reserves outside existing mining areas.
"If the government wants to maintain current production levels, it must encourage off-site mineral explorations," Martiono told a discussion at the 5th Australian Mining Exhibition and Conference, Ozmine 2011, in Jakarta.
He added that the government of Indonesia had to work harder to create a more competitive and investor-friendly fiscal regime to attract more investment in the mining sector.
"The mining sector is a capital-intensive industry. The government must offer competitive incentives to be able to compete in attracting investors to conduct businesses in Indonesia," Martiono said.