IMA Responds to Plan for State-Owned Enterprises to Control Export of Natural Resources; Mineral and Coal Governance Must Remain Attractive

Indonesia Mining Association (IMA) has responded to government plans to appoint a state-owned enterprise (BUMN) as the sole controller of exports of natural resources (SDA), including mineral and coal mining. Executive Director Sari Esayanti said that the mining industry, in principle, is ready to support various government policies aimed at strengthening governance of the mineral and coal sector. Implementation of the policy should consider existing long-term sales agreements that have been agreed. Legal certainty and policy stability are important factors in maintaining market confidence and Indonesia’s competitiveness in the global mining industry. ‘IMA supports government efforts to strengthen governance and boost state revenue from the mining sector. However, in its implementation, it should continue to consider business certainty, the continuity of long-term contracts, and a competitive investment climate so that Indonesia’s mining industry remains trusted and able to grow sustainably,’ she said. IMA views the idea of strengthening export controls as something that must be studied thoroughly, balancing governance strengthening, optimisation of state revenue, and most importantly the sustainability of the mining sector. IMA supports stronger oversight and ensuring the utilisation of natural resources to provide maximum benefit for the country and people, but we hope the policies made remain attractive for the mining industry. ‘Many mining industries, from the outset of investment, already have long-term contracts and their economics have been studied over a long horizon,’ she said.