Holes in Indonesia's mining law
Originally Posted By: Dontpanic
1. In SHARE terms, Indonesia continues to decline, losing out in particular to Chile, which has a more accomodating FDI regimen.
perhaps, but transport costs from Chile to China or India would be much higher.
many coal mines in Kalimantan have direct loading to barges or ships, then off they go to China/India. quite efficient.
Originally Posted By: Dontpanic
2. Don't be mislead by the figures for "New" investment. Most of it is either upgrading of existing mines or MNC's cashing out to the Chinese/Indians.
certainly at the "top" level, investment in mining has slowed to a trickle these past years. however, small and medium sized mining ventures are increasingly in demand. myself, i recieve on average one enquiry per month from businesses in the sub-continent wanting to set up coal mines in Kalimantan or Sumatra.
Originally Posted By: Dontpanic
3. Strategic geo-political issues overlap. The Chinese/Indians are not philanthrpopists so perhaps GOI needs to consider the longer-term consequences of a shift in alliances?
what's there to consider? an informal economic and political alliance with china and/or india seems to make a lot of sense.