Mineral resources policies and governance in Indonesia

Indonesia is a fast growing democratic developing country comprising more than 17,000 islands, founding member of ASEAN and a member of the G-20 major economies. It is one of the most highly mineralised countries in the world, the mining sector playing a pivotal role in the country's economy. In 2001, the Decentralization Law No. 22/1999 came into force and caused a transfer of authority and responsibility from central to regional and local administrative governments. The new Mining Law of 2009 substituted its 40 year old predecessor, but lacked detailed regulations for its implementation. These were only issued in 2010, which lead to a period of great uncertainty for investors in the mining industry. The new legislation intends to foster domestic economic development, which may be interpreted as protectionist policy. For the development of a sustainable mineral resources policy, further endeavours will have to be made.