Indonesia Materials

Indonesia targets attracting nearly 8 billion USD in mining

The Indonesian government expects to attract 7.75 billion USD in investment in the mining industry this year, a record level between 2015 and 2024, fuelled by a wave of smelter development projects.

13, Feb. 2020

Photo by Danial Shah on Unsplash
Photo by Danial Shah on Unsplash

JAKARTA, VNA - The Indonesian government expects to attract 7.75 billion USD in investment in the mining industry this year, a record level between 2015 and 2024, fuelled by a wave of smelter development projects.

According the Energy and Mineral Resources Ministry’s coal and minerals director general Bambang Gatot Ariyono, investments will decline from 2021 to 2024 because of a decrease in smelter development and investment during that period.

A wave of smelter construction began a few years ago in anticipation of the government’s ban on mineral ore exports. Indonesia, the world’s largest nickel producer, banned nickel ore exports from 2020.

According to the ministry, the largest chunks of investment this year are slated to come from mining heavyweights PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara.

The two mining giants will invest 2.3 billion USD in copper metallurgy in West Java province, and 1.59 billion USD in building a metallurgy plant in West Nusa Tenggara, respectively. The two facilities are expected to be operational in 2022. - VNA