OVERVIEW

In recent years following the introduction of Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”) , Indonesia has become one of world’s major exporters of raw minerals.  This year however, things changed. The reason for this was the end of the Mining Law - 5 year grace period of not having to process and purify raw minerals domestically, and the subsequent event of the Government implementing the export of raw minerals restriction.

With Indonesia contributing to 20 percent of the world nickel supply,[1]  within 4 days after the 5 year grace period ended, world nickel prices hiked by 6 percent.[2] A further aftermath has been that many Indonesian mining companies are threaten to wrap up their business as they are ill prepared to process and purify raw minerals and are very much dependent on exports.