Annual Mining Report Indonesia

Transcription

1 2016/SOM2/MTF/017 Agenda Item: 6 Annual Mining Report Indonesia Purpose: Information Submitted by: Indonesia 10 th Mining Task Force Meeting Arequipa, Peru 9-10 May 2016

2 Annual&Mining&Report&(AMR)& APEC&MTF,&Ariquepa&Peru& Mining industry in Indonesia has always been closely related to economic development and continuestobeaprominentcontributortoeconomicactivitybothdirectlyasamajorsourceof countryincomeandindirectlyasmultipliereffectofminingitself. Blessedwithlargeamountofmineralresourcesthroughoutthecountry<inadditiontocurrent statusofresourceandreserves<furtherexplorationsinindonesiawillpotentiallydiscovernew mineralreserves.standingpositionofindonesiangovernmentistourgeminingpermitholder toimplementmineralbeneficiation(processingandrefining)withinthecountry,puttingforward thecountryinteresttocontrolproduction,preservingenvironmentanditslongtermdomestic interest, while in the same time taking consideration to political stability, national economic, regionaleconomicandcontributionofminingsectortostaterevenueinthehighestregard. AnnexAprovidesrecentupdatesandforecastofMineralindustryinIndonesia: Availabilityofprocessingandrefiningfacilitywithinthecountry(AnnexA) Potentialoflossinthestaterevenueofcentralandregionalgovernment Socialimpact PolicyonMining ! Ore/rawmaterialshallbeprocesseddomesticallypriortoexport. 2.! Metallic commodity that can be sold as concentrate (intermediate products) are copper concentrate, iron concentrate, iron sand concentrate/pellet, manganese concentrate, lead concentrateandzincconcentrate. 3.! Metallicmineralcommoditythatcanonlybesoldintheformofmetalaresuchastin,nickel, bauxite,gold,silver,andchromium. 4.! After 2017, processed products can only be sold in the form of metals, meaning neither concentratesnorores,canbeexported 5.! SinceLawRepublicofIndonesiaNo23year2014hasbeenreleased,onecrucialchangein mining practice and conduct is that regional government does not have the authority to issuemininglicenseanymore.incorrelationwiththisnewlaw,theimplementationoflaw number4isadjustedinaccordancetolawnumber23. 6.! TheGovernmentofIndonesiacurrentlyinthecircumstancestoamendLawNo4Year2009 withregardtosomeissuessuchasdivesmentrelatedpolicy. InvestmentPolicyandOpportunity ImprovementofInvestmentPolicy 1.! LicensingProcess Reduceobstaclesinstartingabusiness,especiallyinthecaseoflicensingprocedures. 2.! Revise"NegativeInvestmentList(DNI)" Tryingtocreateamorefriendlyinvestmentrulesforinvestors. DNIwithnewsectorsopentoforeigninvestment. 3.! Increasingtaxincentives FacilityforCorporateIncomeTax(PPhBadan)givenbythegovernmentcouldbeinthe form of Tax Allowance (pursuant to Government Regulation of the Republic of Indonesia No.1/2007jo.62/2008jo.52/2011) or Tax Holiday (pursuant to Regulation of Finance Minister of the Republic of Indonesia Number130/PMK.011/2011)

3 Incentive(AnnexB) Through the Minister of Energy and Mineral Resources (ESDM) Decree No. 16/2015 on the requirementsintheutilizationofincometaxfacilitiesforinvestmentsincertainbusinesssectors in the sectors of energy and mineral resources, the government eases investors to enter the energy sector. There are eight specialized business fields, and 13 areas of special effort in certainareas,whichcangettaxrelieffromthegovernment.businesssectorsthatcouldreceive taxdiscounts,amongothersboilandgas,mineralandcoalmining,electricity,andalternative energy. For the coal mining sector, the government will only give incentives to two sectors. First, investorsgasificationprocessingthroughouttheprovincewithaninvestmentofatleastrp100 billion,asforthemineralminingsector,businesssectorwillreceivethetaxallowancewhichis gold and silver, iron sand, iron ore, uranium and thorium, tin, lead, bauxite, copper, nickel, manganese,zinc,andzirconium.employersareentitledtosuchreliefonconditionthatinvestin building smelters other than Java for some commodities. As a minimum requirement of investmentreachedrp100billionforiron,uranium,tin,nickel,andmanganese.whilethelead, andzirconreachedrp50billion,aswellasbauxiteandgoldreachedrp250billion. ClosingRemarks 1.! Indonesiahasimportantmineralandcoalresourcesandreservesthatareprospectivetobe developedinfuture,bothintheupstreamanddownstreamindustry. 2.! NowadaysaretheeraofmineralindustryawakeninginIndonesia.Indonesiaisextending the invitations to investors to develop the potential of mineral and coal resources and to collaborativelyexpandandestablishdownstreammineralindustries. 3.! The Government of Indonesia will facilitate to bridge investors and stakeholders in Indonesiatoeasedoingbusiness.

4 Total&Production&Capacity&Concentrate&Against&Smelter&For& Commodities! ANNEXA )4,500, )4,000, Total&Production&Capacity&Concentrate&Against&Smelter&For&Copper&& Commodities 4,000,000.00) 3,911,000.00) 4,046,000.00) Quantity) (ton) )3,500, )3,000, )2,500, )2,000, )1,500, )1,000, )500, ,466,770.93) 2,236,233.00) 1,927,239.00) 2,351,978.00) 1,516,902.07) 3,500,000.00) 2,540,000.00) 2,690,000.00) 2,362,000.00) 2,229,000.00) 3,413,000.00) 3,855,000.00) Produksi)Konsentrat Kapasitas)Input Total&Production&Capacity&Concentrate&Against&Smelter&For&Nickle&& )4,000,000, )3,500,000, )3,000,000, )2,500,000, )2,000,000, ,556,669,502.23) 3,524,042,657.35) 32,626,844.88) 3,482,954,110.35) 41,088,547.00) 3,420,585,065.71) 62,369,044.65) )1,500,000, )1,000,000, ,979,694.89) )500,000, Reserve)(ton) 3,382,319,032.85) 3,344,053,000.00) 13,986,350.00) Year Commodities 3,333,702,650.00) 3,319,716,300.00) 22,103,350.00) 3,297,612,950.00) 27,177,523.00) 29,677,523.00) 3,270,435,427.00) 3,240,757,904.00) 29,677,523.00) 30,054,523.00) 3,211,080,381.00) 30,054,523.00) Cadangan)(ton) Produksi Kapasitas)Input 3,413,000.00) )100,000, )90,000, )80,000, )70,000, )60,000, )50,000, )40,000, )30,000, )20,000, )10,000, Production)and Input Capacity (ton)

5 Total&Production&Capacity&Concentrate&Against&Smelter&For&Bauxite&& Commodities +1,600,000, ,000, ,400,000, ,200,000, ,000,000, ,368,320, ,343,668, ,303,985, ,273,783, ,718, ,215,065, ,175,901, ,175,051, ,176,751, ,167,831, ,140,551, ,113,271, ,082,491, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,652, ,683, ,201, , , , , , , , ,220, ,280, ,280, ,780, ,780, Reserve (ton) Cadangan Produksi Kapasitas+Input 30,780, Total&Production&Capacity&Concentrate&Against&Smelter&For Iron&Ore&and&Iron&Sand 0 +50,000, ,000, ,000, ,000, ,000, Productio and+ Input Capaity (ton) )2,500,000, )100,000, ,234,114,468.42) 2,213,366,211.48) 2,182,254,893.68) 2,169,290,000.00) 2,153,963,040.00) 2,121,813,120.00) )90,000, )2,000,000, ,226,207,495.67) 2,202,906,269.60) 2,169,290,000.00) 2,169,290,000.00) 2,138,528,080.00) 2,105,098,160.00) )80,000, )70,000, )1,500,000, )60,000, )50,000, )1,000,000, )40,000, ,651,375.91) 12,841,284.19) 7,906,972.76) 10,459,941.88) 12,964,893.68) 24,964,893.68) 24,964,893.68) 24,964,893.68) 24,964,893.68) 24,964,893.68) 24,964,893.68) 12,964,893.68) 12,964,893.68) )30,000, )500,000, )20,000, ,434,960.00) 16,714,960.00) 16,714,960.00) 16,714,960.00) 15,326,960.00) 16,714,960.00) )10,000, Reserve)(ton) Production)and) Cadangan)(ton) Produksi Kapasitas)Input Input)Capacity (ton)

6 AnnexB!