Indonesia is rich in mineral resources and is an important mineral resource country and producer of mineral products in Asia and even the world. Indonesia has friendly relations with China and is one of the most important mining investment targets for China in Southeast Asia.
(1) Main mineral resources and reserves
Indonesia has abundant mineral resources, including oil, natural gas, coal, nickel, copper, gold, tin, silver, molybdenum, cobalt, iron ore, bauxite, zinc, lead, rare earths, etc. As of the end of 2018, the discovered nickel reserves were 21 million tons, copper reserves were 51 million tons, gold reserves were 2500 tons, tin reserves were 800000 tons, and bauxite reserves were 1.2 billion tons, accounting for 23.6%, 6.1%, 4.6%, 17.0%, and 4.0% of the world's total reserves, respectively. In addition, according to available data, as of the end of 2017, Indonesia had proven coal reserves of 22.6 billion tons, accounting for approximately 2.2% of the world's total coal reserves.
(2) Main mineral product output
Indonesia is the world's second-largest producer of nickel ore, the 5th largest producer of coal, and the 8th largest producer of copper and bauxite. In 2017, Indonesia produced 331000 tons of nickel ore, 60000 tons of tin ore, 462 million tons of coal, 694000 tons of copper ore, and 1.294 million tons of bauxite ore, accounting for 15.3%, 16.2%, 6%, 3.5%, and 0.4% of the world's total production, respectively.
(3) Currently ongoing mineral exploration and development projects
As of the end of March 2019, Indonesia has over a hundred ongoing mineral exploration and development projects, covering multiple types of minerals such as coal, nickel, copper, gold, iron ore, tin, bauxite, zinc, etc. Among them, larger exploration and development projects include BEP coal mine project, Weda Bay nickel cobalt project, Gag Island nickel iron cobalt project, Elang Dodo gold copper silver project, Jogjakarta iron mine project, Pomalaa East nickel mine project, La Sampala nickel cobalt project, and so on
(4) Main Mining Laws
The Mineral and Coal Mining Law 2009, which came into effect in Indonesia in January 2009, is currently the dominant and fundamental law for mining management. This law establishes and clarifies the principles, basic framework, and main contents of mining management in Indonesia, including the procedures and standards for establishing mining areas, mining commercial areas, national reserve areas, small-scale mining areas, and special mining commercial areas, the procedures and requirements for obtaining mining licenses, the rights and obligations of mining license holders, the suspension and expiration of licenses, mining services, the use of mining land, and provisions for criminal penalties.
This law establishes three main forms of mining rights for mining activities in Indonesia, namely Mining Business License (IUP), Small Scale Mining License (IPR), and Special Mining Business License (IUPK). Among them, mining commercial licenses are divided into two types: exploration mining commercial license (IUP for exploration) and operational mining commercial license (IUP for operational production). The commercial license for exploration and mining is abbreviated as the exploration and mining license, and the commercial license for production and mining can be simplified
It is called a production mining license. Similarly, special mining commercial licenses are also divided into two types: exploration special mining commercial licenses (referred to as exploration special mining licenses) and production special mining commercial licenses (referred to as production special mining licenses).
