INSIGHT

Indonesia mining update

Mining

In brief

It has been a torrid few years for investors in the Indonesian mining sector. The mining sector was one of the key sectors bearing the brunt of the nationalistic sentiment that became a focal point of the political discourse during the recent parliamentary and presidential election campaigns. With these elections now out of the way, and the Jokowi-Kalla team emerging as victors in the presidential campaign, there is some cause for optimism going forward. However, much will depend on the machinations of the coalitions and allegiances that crystallise during the new parliament, including the extent to which the so-called permanent coalition formed by the losing presidential candidate Prabowo Subianto remains intact, and the consequent pressures that these parliamentary forces exert on government officials and policy formation in the Indonesian mining sector.

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