IMA Calls for Stability in Financial Obligations, Highlights Differences Between Mining and Oil & Gas
The association of mining industry players under the Indonesian Mining Association (API-IMA) has emphasised the importance of stable financial obligations for companies to maintain the investment climate and the sustainability of national mining operations.
According to IMA, the mineral and coal mining (minerba) industry has very different business characteristics compared to the oil and gas (migas) sector, both in terms of business models, investment patterns, risk levels, regulations, and permitting mechanisms.
Executive Director of API-IMA, Sari Esayanti, stated that each minerba commodity has a different level of complexity, so the fiscal policy approach and state revenue mechanism cannot be equated with the migas sector.
“The minerba mining industry has unique characteristics with varying levels of complexity for each commodity. This fundamental difference is why many countries apply different royalty and fiscal systems to the migas sector,” she said in her statement, quoted on Saturday (9/5/2026).
IMA assesses that if the production sharing contract (PSC) scheme applied in the migas sector is forced onto the minerba sector, significant challenges will arise. Differences in business cycles, risk profiles, cost structures, and operational mechanisms are seen as the main factors making the two sectors unable to be treated with the same approach.
Amid various policy adjustments facing the industry, IMA highlights the importance of regulatory consistency, particularly regarding mining companies’ financial obligations.
“We hope for stability in financial obligations so that the investment climate remains maintained and mining operation sustainability can proceed well. Currently, the industry faces various policy adjustments such as changes to DHE, royalties, HPM, export duties, and the implementation of B50, which add to the operational challenges for mining companies,” Sari explained.
IMA views policy certainty and consistency as crucial factors in maintaining the competitiveness of Indonesia’s mining industry. Moreover, this sector requires long-term investment to support the mineral downstreaming agenda and the national energy transition amid constantly changing global market dynamics.