Mining Industry Faces Increased Burdens, Investment Certainty in the Spotlight
The Indonesian Mining Association (API-IMA) has highlighted the importance of stability in financial obligations within the non-oil and gas mining sector amid various policy adjustments facing the industry. According to IMA, policy certainty is a crucial factor in maintaining the investment climate and the sustainability of national mining companies’ operations.
The non-oil and gas mining industry is considered to have business characteristics that differ from the oil and gas sector, both in terms of business models, investment patterns, risk levels, regulations, and permitting mechanisms.
“The non-oil and gas 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 compared to the oil and gas sector,” said API-IMA Executive Director Sari Esayanti in an official statement on Saturday (9/5/2026).
Sari explained that the non-oil and gas mining industry has a high level of complexity with differing characteristics for each commodity. Therefore, the fiscal policy approach and state revenue mechanisms in the non-oil and gas mining sector are deemed unable to be equated with the oil and gas sector.
This is due to fundamental differences in business cycles, risk profiles, cost structures, and operational mechanisms between the non-oil and gas mining and oil and gas sectors.
On the other hand, IMA emphasised that policy stability is one of the important factors in maintaining the sustainability of investment and operations in the national mining industry.
“We hope for stability in financial obligations so that the investment climate remains maintained and mining operation sustainability can run well,” said Sari.
“Currently, the industry faces various policy adjustments such as changes to DHE, royalties, HPM, export duties, and the implementation of B50, which further add to the operational challenges for mining companies,” she added.
In addition, the need for long-term investment to support national downstream processing and the energy transition is also seen to require stable policy support.
For information, the Indonesian Mining Association (API-IMA) was established on 29 May 1975 and is a non-governmental, non-political, and non-profit organisation.
IMA has more than 90 member companies consisting of company members and associate members. Company members are companies in the exploration and production of mining, while associate members are companies supporting mining activities.
IMA states that its members contribute 60 percent to the gross domestic product (GDP) from coal mining and 80 percent to the GDP from mineral mining. In addition, IMA members are committed to implementing Good Mining Practices and prioritising environmental, social, and governance (ESG) aspects in their business practices.