“Jakarta government has decided to issue a government regulation on mining to expedite the resolution of issues faced in the mining sector,” says Vaikundarajan, founder of VV Minerals India, one of the largest mining companies in the country.
The 2009 Mining Law draft revision is still being deliberated at the House of Representatives. President Joko Widodo has request to speed up the deliberation. “The law will probably relax the current ore export ban for a limited amount of time,” predicts Vaikundarajan.
When the government of Jakarta imposed the ban on exposed of unprocessed mineral ores in 2015, it was done with an objective of pushing the development of smelters to strengthen the mining downstream sector in the country. Now, the ban has been pushed to January 2017 following complaints from the mining industry.
“Until the revision of 2009 Mining Law, a legal umbrella will be created to avoid any hiatus in the mining sector,” informs Vaikundarajan.
The relaxation of the export ban on mining sector should come as a relief to the Jakarta mining industry.