Illustration of coal (CNN Indonesia / Adhi Wicaksono)

Only Reached 35 Percent of Projections, Minerals and Coal Investment Got Challenges in Commodity Prices

Estella Claudia
Market & Investment
New Investment
Jul 12, 2019
2585
Jakarta, Indonesia - It is reported that, the realization of investment in the minerals and coal sector is still far from the target. Ministry of Energy and Mineral Resources (ESDM) stated that the investment only reached USD 2.2 billion or equivalent to 35.66 percent of the projection throughout the year which reached USD 6.17 billion, making the government is really looking for the new investors.

ESDM Ministry Director General of Mineral and Coal Bambang, Gatot Ariyono said that Indonesia needs investment, especially in the field of exploration, to find new mineral reserves, because if it is not done in the next 10 years there will be no more mining.

However, Bambang is also is still confident and optimistic that the target will be achieved by the end of the year with more investors in minerals and coal to come.

He also mentioned that this year's mining investment is challenged by weakening commodity prices and the overlapped regulations at the central and regional levels which influenced investors' decisions.

According to the source, investment trends in the mining sector will follow world trends and tend to continue to increase with the ease of exploration permits in forest areas and minimal monitoring of exploration performance. Investment in the mining sector also mostly comes from the construction and expansion of the mine.

It is reported that last year, the mineral exploration investment budget in Indonesia was only around 1 percent of the world's total exploration investment in the range of USD 100 million. This budget decreased compared to the average for the 2006-2014 period which reached 2.5 percent of the world, making the exploration activities decreased as well.

Bambang targets the total investment in the mineral and coal sector to increase up to 43.93 percent next year compared to the prognosis so far this year to USS 8.88 billion and around USD 300 million is allocated for investment activities as the largest investment in 2020 is dominated by smelter projects.

Source: https://www.cnnindonesia.com/ekonomi/20190711160151-85-411317/investasi-sektor-minerba-baru-35-persen-dari-proyeksi

Minerals , Coal , Investment , Investors