Soaring Energy Prices: Golden Opportunity for Indonesia's Mining Sector

JAKARTA, KOMPAS.com - The conflict in the Middle East involving the United States (US), Israel, and Iran has the potential to increase energy prices, including coal.

Secretary General of the Indonesian Mining Association, Tony Wenas, explained that in general, the impact of this geopolitical conflict will not only affect coal but mining products as a whole.

The rise in energy prices, including those derived from mining outputs, is also driven by increased demand.

The man who serves as President Director of PT Freeport Indonesia also revealed that this policy could bring benefits to the country as well as to companies.

“This benefits the country as well as the companies. Yes, the prices are rising because demand is increasing,” he added.

He explained that the increase in demand for mining products is occurring across the board in the international market.

“This is the international market, so indeed, when demand rises, prices rise. It’s actually the perfect timing for Indonesia,” he clarified.

In general, Tony said, the situation in the Middle East is delivering a chain of impacts to various sectors, particularly energy availability.

The impact from the Iran war will also be felt by companies in Indonesia.

“If from the impact on companies, it will certainly have an effect, but we will try to mitigate it,” he concluded.