Volatile commodity prices, depleted mineral reserves, stringent environmental regulations, rising operating costs and ever-intensifying competition have forced the international mining industry to reassess its strategies.
Low mineral commodity prices have resulted in the Indonesian mining sector focusing on improved efficiencies and reduced unit costs, while an increasingly global industry focus has caused increased merger, acquisition, strategic alliance and joint venture activities.
Over the past three years, there have been many developments affecting Indonesia’s mining industry. The COVID-19 pandemic, global energy crisis, geopolitical instability from the Russia-Ukraine conflict, supply disruption and commodity price volatility have resulted in an unpredictable macroeconomic situation. The industry is also being impacted by the global energy transition which affects not only fossil fuels such as coal, but also causes increased demand for critical minerals essential to the energy transition. The new laws and regulations issued by the Government in the last few years have also continued to significantly affectIndonesia’s mining industry, and in some instances, create more uncertainty for mining companies operating in Indonesia.