Australian miners unfazed by uncertainty, look with long term view in Indonesia

By Bambang Atmaja

Australian mining companies investing in Indonesia are unfazed by the lingering uncertainty as they?re here for the long haul, according to a top Australian business representative.

Australian Trade and Investment Commissioner Julianne Merriman said that the Australian Trade Commission and Embassy have also encouraged the Australian companies to keep the long term view in Indonesia.

"...on uncertainty at the moment in Indonesia, Australian companies are fairly unfazed by that and are looking at the medium to long term perspective, " she told Petromindo.com at the side lines of Ozmine convention and exhibition in Jakarta on Wednesday.

"So therefore they are still very committed to stay in Indonesia market, and stay here for the longer term and working through with the Indonesia government and with the Indonesian partners," said Merriman.

She said that Australian mining firms would respect any decision made by the Indonesian government in developing the mining sector, although they also prefer for certainty.

"We just want a clarity for our companies, (but) whatever Indonesian government policy, whatever decisions are made, we respect them, they are Indonesian decision to make," said Merriman.

Meanwhile, Merriman also said that Australian mining companies operating in the Indonesian mining sector would like to take part in the government?s program to develop the downstream side of the industry.

She explained that with sophisticated technology and much funding, Australian mining firms could play roles along with the Indonesian partners in boosting the downstream side of the mining sector.

"I certainly know of conversation where the Australian companies are looking at that option," she said, when asked whether Australian mining firms insisted on taking part in building smelters with Indonesian partners in the country.

The Indonesian government as mandated by the mining Law No 4/2009, will ban the export of raw mineral ores starting 2014 as part of efforts to boost the development of smelting and refinery industry at home to generate greater added value.

Merriman said that Australian mining firms would adjust with the situation and policies being made by the Indonesian government.

"To Australian companies whether they?re in Indonesia or any other market, you have to adjust, that is jut part of the international business," she told Petromindo.com as saying.

Editing by Reiner Simanjuntak