Investment Climate and Competitiveness of the Indonesian Coal Industry

Figure 1. Prof. Dr.  Subroto and the Speakers on the Investment Climate and Competitiveness of the Indonesian Coal Industry Discussion Forum.

Purnomo Yusgiantoro Center attended the Investment Climate and Competitiveness of the Indonesian Coal Industry Discussion Forum. The event organized by Katadata on November 20, 2019, at Graha Bimasena, Jakarta. The event attended by many professionals and stakeholders in the coal industry.

The event started with welcoming remarks by Prof. Dr. Subroto, followed by the panel discussion. The panel speakers were Mr. Bambang Gatot Ariyono (Directorate General of Mineral and Coal), Mr. Pieter Abdullah (Research Director of CORE Indonesia), Mr. Hendra Sinadia (Executive Director of APBI), and Mr. Sammy Hamzah (Chairperson of the Indonesian Entrepreneurs Association on Energy and Mineral Resources).

In summary, the competitiveness of the coal industry in Indonesia, compared to other Asian countries in terms of the demand, is still high. But in terms of investment, it is not as high as the demand, since the uncertainty regulation; Domestic Market Obligation (DMO) and contract policy continues to change, causing investors to feel hesitant to invest. Mr. Bambang said the coal company that holds the Coal Mining Work Agreement (PKP2B) could automatically obtain the contract extensions for 20 years (2 x 10 years), which stated in the Mining Law. 

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