Mining in Indonesia
Investment and Taxation Guide 2022 – 12th Edition
We welcome you to the 12th edition of the PwC Indonesia "Mining in Indonesia: Investment and Taxation Guide" released in September 2022, which highlights the key regulatory and taxation considerations for investors in the Indonesian mining sector.
A critical transition for miners
The race to net zero is changing what it means to be a miner. Demand for critical minerals is surging and operating environments are getting more challenging.
The market for mining materials is reconfiguring in fundamental ways. The energy transition and the race to reach net-zero emissions are creating a surge in demand for ‘critical minerals’. These are the commodities needed to generate low-emission energy — elements such as lithium, nickel, cobalt and graphite for energy storage; copper and aluminium for energy transmission; and silicon, uranium and rare earth elements for solar, wind and nuclear energy generation.
Indonesian Production of Coal and Minerals
In 2022, the coal production target has been set at 663 million tonnes. Initially, Indonesian miners were expected to struggle to meet this target due to coal export restrictions imposed by the Indonesian Government in January 2022 to tackle the issue of lack of domestic coal supply for power stations. However, the coal production during January-August 2022 has reportedly reached 430 million tonnes (or 65% of the target), which indicates the actual coal production in 2022 may well meet the target.
