Asia Pacific Mining Conference
Background
The world’s economic growth will continue requiring mineral
products and source of energy. Undoubtedly mining sector continues to
play a significant role in supporting the world’s industrial and economy
sectors and Indonesia has been one of major contributors in the world
industrial and economy landscape as exporter country and as well as
investment destination. With the recent improved investment ratings,
Indonesia is in the best position to leverage the opportunities.
It is great time for Indonesia to show the world of its
potentials, investment opportunities and particularly for its mining
industry to tap the world and regional’s capacity for its benefits. The
followings are some relevant references:
- World Trade in 2050 will jump from $37 trillion in 2010 to $287 trillion in 2050 (Citigroup‘s Report, Oct 2011)
- Indonesia has set the long-term development plan, MP3EI
- Prices for mining commodities are expected to rise with the demand increase.
- Mining companies continue to face some major challenges for sustainable growth:
- Performance improvement and cost savings are key challenges to cope with rising demand
- Rise of resource nationalism is of major concern
- Miners are facing a political landscape that has become more
intertwined with operations, resulting in a direct hit to bottom lines.
- Taxation has become an issue at the forefront of CEOs'
minds. Mining companies are also contending with a shortage of skilled
workers, particularly in developing markets.
- Improving safety and reducing the environmental impact will be ongoing goals.
- "Low-carbon" production of minerals is increasingly important in the years to come
- The world demands for energy continue to grow and coal
is anticipated to contribute a significant portion of the Indonesia‘s
energy mix in 2050
- Indonesia has become a popular source for emerging
markets like China and India, and as a major supplier for Japan, South
Korea and Taiwan.
- There are a number of companies holding significant cash, looking for access to new reserves or expansion into new territories.
- However, Indonesia is yet to set a favorable investment
climate with right regulatory framework, infrastructure and government
supports