Lemhanas Urges Enhanced Public Communication in Mining Sector

Edi Permadi, a professional expert on natural resources at Lemhanas, stated that geopolitical tensions in the Middle East and the ongoing Russia-Ukraine war have significantly impacted Indonesia’s mining industry. Geopolitical uncertainty has driven up the prices of several energy commodities, including coal; consequently, improvements in the 2026 Work Plan and Budget (RKAB) for coal are expected to boost investment and revenue within the sector.

In the nickel sector, rising fuel prices and the cost of sulphuric acid are raising concerns regarding increased production costs, particularly for nickel smelter projects utilising High Pressure Acid Leaching (HPAL) technology. Conversely, the tin and copper sectors are considered well-positioned to withstand global geopolitical volatility. Lemhanas is encouraging transformation and efficiency within the mining sector to navigate global market fluctuations. Furthermore, the institute is pushing for improved public communication from the government—specifically through the Coordinating Ministry for Economic Affairs and Danantara—to inform the public about global and national dynamics within the mining sector.

Regarding the government’s discourse on applying a Production Sharing Contract (PSC) scheme—currently used in the oil and gas sector—to the mineral and coal sector, Lemhanas views this proposal as being in its early stages, noting that the business models for oil and gas versus minerals and coal are vastly different. Therefore, long-term efforts are required to attract investors for exploration activities to ensure the maintenance of domestic production levels.