Foreign investment in mining reaches US$2.6 billion in H1

Foreign direct investment in mining in the first semester 2011 reached US$ 2.6 billion (Rp 23.14 trillion), higher than in the same period last year at Rp 20.3 trillion, said Boedi Soetrisno, deputy director for agribusiness affairs of the Directorate of Planning for Agribusiness and Natural Resources at the Indonesia Investment Coordinating Board (BKPM).

He said the foreign investment in mining in the first half of this year represented 28 percent of total foreign direct investment in the first semester of US$9.2 billion (Rp81.88 trillion), said Boedi Soetrisno.

The government targets foreign investment of Rp 172.8 trillion overall this year.

Boedi added the investment increase was triggered by a rise in the number of approved mining projects, to 223 in 2010 from 36 projects in 2009. Mining exploration and exploitation activities in those projects appeared to have been accelerated in the first half of this year.

Previously, Wimpy S. Cecep, Coordinating Minister for the Economy's deputy in charge of mining said that up until 2014, mining sector requires investment of Rp 830 trillion, including to build smelter plants.

Going forward, as stated in the third quarter BMI Mining report, investment in mining sector is expected to continue to increase by an average growth of 11 percent per year from this year until 2015.

According to the report, the increasing activities in mining sector was driven by coal mining activities, which increased by an average of 13.7 percent per annum, with coal output reaching as high as 569 million tons per annum in 2015.

Given the achievement, Indonesia positioned itself as the largest coal exporter in the world, with two key export destinations, namely China and India. (giok)