APINDO Identifies Regulatory Obstacles in the Mineral and Coal Sector

The Indonesian Employers Association (“APINDO”) has identified several business obstacles that are planned to be reported to the Acceleration Task Force of Government Strategic Program (Satgas Debottlenecking). The report is also intended to encourage amendments to several regulations and policies deemed to have the potential to hinder the investment climate and business activities in the mineral and coal (“Minerba”) sector.

“With respect to sectoral regulations, the impact of such policies ultimately leads to consequences for investment and employment,” stated Hendra Sinadia, Member of APINDO’s Mineral and Coal Committee, to Hukumonline.

Hendra explained that one of the policies considered obstructive is the reduction of production quotas, which creates uncertainty for business actors and may potentially affect employment aspects. In addition, APINDO has urged a review of several other regulations deemed to increase production costs, including policies related to taxation, royalties, Export Proceeds Foreign Exchange (Devisa Hasil Ekspor/DHE), as well as the mandatory B40 biodiesel and the planned implementation of B50 for operational vehicles in the mining sector, which further add to production burdens.