Professional Documents
Culture Documents
Investment Opportunity of Mineral and Coal in Indonesia
Investment Opportunity of Mineral and Coal in Indonesia
CONTENT
I. BACKGROUND
II.CURRENT CONDITION
III.MINING REGULATION
IV.INVESTMENT POLICY AND
OPPORTUNITY
V.CLOSING REMARKS
I. BACKGROUND
1. Indonesia has abundant mineral and energy resources that can be utilized to raise peoples welfare
in the form of job, education, and other economic and social benefits. This condition can not be
achieved without investment in various sectors of development including mineral and energy.
2. Geographically the country has a comparative advantage, which is situated between Asia and
Australia continents, causing lower shipment cost of transportation for Asia market compared with
Australia and African resource-rich countries.
3. Complying with the States constitution, the Government should increase benefits of its resources,
including enhancement of mineral and energy value added to diversify more valuable products of
processed minerals. Diversification of products through processed and refined minerals will reduce
negative impact from volatility of commodity price, and at the other side it will absorb more people
in workforce.
4. The new Mining Law No. 4/2009 mandates the Government to manage the resources through
conserving and increasing value added of mineral and energy for the purpose of creating
sustainable economic development.
5. There is a large and open opportunity in investing not only in mining but also in processing of
mineral and energy sources in Indonesia.
NO COMMODITY
RESOURCE (TONNES)
ORE
METAL
RESERVE (TONNES)
ORE
METAL
Primary Gold
8.357.714.559,00
7.454,98
Bauxite
1.347.638.206,68
648.479.376,64
585.721.415,00 239.598.060,2
Nickel
3.711.588.997,00
54.449.501,35
1.155.234.951,40 21.378.312,61
Copper
18.284.523.144,94
108.698.062,96
Iron Ore
712.464.366,32
401.771.218,67
Iron Sand
2.121.476.550,10
443.732.971,69
173.810.612,00
Manganese
15.557.048,77
6.305.298,42
4.429.029,00
2.834.916,25
Zinc
670.658.336,00
7.487.775,86
19.864.090,90
2.274.982,50
Tin
3.945.572.597,87
2.349.989,64
1.322.471.947,00
10
Silver
14.468.642.881,00
837.949,53
15.114.023.114,43
2.807.161.814,13
2.719.650.376,80
2.575,22
25.603.197,33
65.579.511,00 39.825.354,30
25.412.652,63
281.956,00
1.949.989,05
: 124,79 Billion
: 32,38 Billion
TOTAL
TOTAL
CoW
CoW
==
41
41
CCoW
CCoW ==
75
75
IUP
IUP
== 10.922
10.922
IUP
IUP (METALLIC
(METALLIC MINERAL)
MINERAL)
== 4.474
4.474
IUP
IUP (NON
(NON METALLIC
METALLIC &
& ROCK)
ROCK) == 2.526
2.526
IUP
IUP (COAL)
(COAL)
== 3.922
3.922
Singapura
3.617 252.183,2
1
Japan
2.237 121.388,5
2
South Korea
2.277
73.324,8
3
USA
527
70.998,7
4
Netherland
608
57.964,3
5
British Virgin
726
Islands
46.475,3
6
England
608
33.559,4
7
Malaysia
1.312
28.106,9
8
Mauritius
114
27.391,8
9
Australia
659
18.394,6
10
Hong Kong, RRC 520
17.598,6
11
Taiwan
441
15.559,2
12
R.R.China
943
9.308,9
13
Swiss
153
7.413,0
14
Seychelles
Sources: BKPM, 2014
70
6.786,0
15
1 Mining
Metal Industry, Metal Goods,
2
Machine, and Electronic
3 Trade and Reparation
4 Food Industry
Industrial Rubber, Rubber and
5
Plastic Goods
Projetc
s
Realizatio
n
(Rp.
Billion)
230
3168,1
125
1948.,8
320
46
945,3
680,6
15
535,2
5.126,25
4.463,40
2.949,01
IUP
CoW
CCoW
Landrent/Deadrent
2 4 USD/Ha (prevailing)
2 - 4 USD/Ha (prevailing)
Royalty
3- 5 % (prevailing)
13,5 % (naildown)
Corporate Tax
25%
25-45% (naildown)
25-45% (naildown)
Note :
Prevailing based on Government Regulation No. 9/2012
Naildown based on Contract
CoW : Contract of Work (KK)
CCoW : Coal Contract of Work (PKP2B)
REGULATION ON MINING
1. Ore / raw material can not be exported since 11 January 2014.
2. Metallic commodity that can be sold as concentrate (intermediate
metal are such as tin, nickel, bauxite, gold, silver, and chromium.
4. After 2017, processed products can only be sold in the form of
1. Licensing Process
Reduce obstacles in starting a business, especially in the case of licensing
procedures.
2. Revise "Negative Investment List (DNI)"
Trying to create a more friendly investment rules for investors.
DNI with new sectors open to foreign investment.
3. Increasing tax incentives
Facility for Corporate Income Tax (PPh Badan) given by the government could
be in the form of Tax Allowance (pursuant to Government Regulation of the
Republic of Indonesia No.1/2007 jo.62/2008 jo.52/2011 )
or Tax Holiday (pursuant to Regulation of Finance Minister of the Republic of
Indonesia Number 130/PMK.011/2011)
11
Exploration Phase
Geology Survey
Exploration
Boreholing
Non Metallic
and Rock
WIUP
Applicatio
n
Mineral
Mineral Processing
and Refining
Facility (Smelter)
Expert consultation
Overburden management
Sales and rental of heavy
equipment
Management of tailings and
waste
Construction of power plant
development (to support the
smelter industry)
Transport
Underground Mining
Coal
Mining Closure
Phase
Coal gasification
Coal upgrading
Coal liquefaction
Coal Briquetting
Coal Water
Mixture
Expert
consultation
Reclamation
and Mining
Closure
Management
Trading
Special Permit
for
Transportation
and Trading
Concentrate
Anodes
Cathodes
Various
Coal
Nickel
Nickel matte ,
Ferronickel
Nickel ore
Iron steel
Smelting
Iron ore
Ore dressing
Agglomeration
Iron making
Steelmaking
casting
non-existing industry
Year
2014
Upgradin
g
Conversion
Downstream
Hot
forming
Cold
forming
Finished
product
High-rank coal
Applications
Active carbon
Coking coal
Gasification
Liquefaction
14
KALIMANTAN :
Generation : 1,943 MW (4%)
150 kV: 2,477 kms
70 kV: 123 kms
JTM : 25,467 kms
JTR : 25,019 kms
kms
kms
SULAWESI :
Generation : 2,442 MW (5%)
150 kV : 3,450 kms
70 kV : 534 kms
JTM : 27,105 kms
JTR : 31,441 kms
SUMATERA :
Generation : 7,834 MW (16%)
275 kV: 1,028 kms
150 kV: 8,753 kms
70 kV: 332 kms
JTM : 94,957 kms
JTR : 93,757 kms
JAMALI :
Generation: 34,618 MW (72%)
500 kV : 5,052 kms
150 kV : 13,100 kms
70 kV : 3,239 kms
JTM : 148,080 kms
JTR : 262,584 kms
kms
kms
kms
kms
MALUKU :
Generation: 269 MW (0,6%)
JTM : 4,852 kms
JTR : 2,780 kms
PAPUA :
generation: 237 MW (0,5%)
JTM : 3,126 kms
JTR : 3,916 kms
Nusa Tenggara:
Generation : 527 MW (1%)
JTM : 9,441 kms
JTR : 9,390 kms
Total of national power generation installed capacity until Early 2013 is about 47,868 MW, transmission
line is about 38,096 kms, and distribution line is about 741,957 kms.
The power system which has been well interconnected is in Java-Bali System and Sumatera System.
44
18
TWh
TWh
26
TWh
66
TWh
IT : 10,8%
Sumatera: 10,6%
Papua: 10%
188
TWh
385
TWh
2013 2022
Indonesia: 8,4%
144
TWh
275
TWh
JB : 7,6%
Average of national electricity demand growth 2013-2022 is about 8.4% annually (50
Source: RUPTL PLN 2013-2022
III.1. PENYEDIAAN
ENERGI
BAUKSIT
DISTRIBUTION
OF ENERGY
REQUIREMENT
FOR BAUXITE SMELTERS
A.1.4. Peta Sebaran Kebutuhan Energi
West Borneo
Number of
Companies
Total Ore Production
(Ton)
Energy (MW)
Riau Islands
Number of
Companies
10
17.978.004
Energy (MW)
406
21
18.610.084
420
III.2. PENYEDIAAN
ENERGI
BESI
DISTRIBUTION
OF ENERGY
REQUIREMENT
FOR IRON SMELTERS
Aceh
Number of Companies
432.937
Energy (MW)
Riau
Central Kalimantan
Number of Companies
32,16
Number of Companies
148.127
Energy (MW)
2,55
6
3.307.050
Central Sulawesi
Energy (MW)
245,72
Number of
Companies
Total Ore Production
(Ton)
Energy (MW)
South Kalimantan
West Sumatera
Number of Companies
Total Ore Production
(Ton)
Energy (MW)
Number of Companies
97.525
West Java
10.028.329
Energy (MW)
1,68
Number of Companies
East Java
Central Java
5
347.652
21,13
Number of Companies
Total Ore Production
(Ton)
Energy (MW)
424,26
6
648.852
39,44
Number of Companies
Total Ore Production
(Ton)
Energy (MW)
3
164.471
2,32
2
94.286
7,94
DISTRIBUTION
OF ENERGY
REQUIREMENT
III.3. PENYEDIAAN
ENERGI
MANGAN
FOR MANGANESE SMELTERS
4
4.412
0,857
III.4. PENYEDIAAN
ENERGI
NIKEL
DISTRIBUTION
OF ENERGY
REQUIREMENT
FOR NICKEL SMELTERS
East Borneo
North Maluku
Number of Companies
Number of Companies
179.055
47,6
Energy (MW)
Energy (MW)
13
18.904.847
4.246,3
Central Sulawesi
Number of Companies
Total Ore Production
(Ton)
Energy (MW)
21
9.018.200
1.908,2
South-East Sulawesi
Number of Companies
52
22.412.469
Energy (MW)
4.744,2
Papua
Number of
Companies
Total Ore Production
(Ton)
Energy (MW)
1
675.137
159,58
PROCENTAG
E (%)
1.
05
91
2.
6 10
14
3.
11 - 30
18
4.
31-50
18
5.
51-80
6.
81-100
Progress commissioning/Production
PROGRESS ACTIVITIES
MINING LICENCE
HOLDER
9
28
V. CLOSING REMARKS
1.
2.
3.
www.minerba.esdm.go.id
*) Plan
INCENTIVE
Fiscal
Incentive
Non Fiscal
Incentive
Exemption of Import Duty, Value Added Tax, Income Tax, Sales Tax
on Luxury Goods and other tax levies for certain industrial activities