Indonesian mining sector remains promising: IMA

The future of the Indonesian mining sector remains promising despite the continued slowdown in the country?s economy. Many investors are interested in entering the sector but they are still waiting for a positive signal from the government to realize their plans, according to the Indonesian Mining Association (IMA).

"Many investors especially those from China are interested in entering the country?s mining sector, but they are still waiting for a significant change in the government?s policy that could guarantee their investment," the association?s executive director P.L. Coutrier was quoted by Bisnis Indonesia as saying.

He said that many potential investors were still monitoring a possible change in the government?s regulation and policy in the mining sector. "They want to know if the change in the policy will be positive or setback," he added.

According to Coutrier, many world?s mining giants still consider that the Indonesian mining sector can still provide some good returns as long as their investment is protected by a strong regulation.

He explained that the government was still working on an innovative policy to develop coal into one of the country?s strategic commodities in the country?s energy use. "The increase in coal production should however be coupled with the issuance of a reliable policy in the production of such mining commodity.," he said. "For this reason, the central government and related agencies should be able to work hand and hand to create a conducive policy that could further encourage coal production," he added. (*)