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New Market Study Published: Indonesia's Mining Fiscal Regime: H1 2014

New Materials market report from Timetric: "Indonesia's Mining Fiscal Regime: H1 2014"

 

Boston, MA -- (ReleaseWire) -- 05/19/2014 -- Indonesia has a wide range of key minerals, and produces significant quantities of coal, gold, bauxite, phosphates and iron sand. It also has the potential for alluvial diamond production. The country plays a crucial role in global coal markets, and is major supplier to Asian countries such as India, China, South Korea, Japan and Taiwan. The mining industry is Indonesia is governed by the Ministry of Energy and Mineral Resources (MEMR) and the Directorate General of Mineral and Coal. The Law of Mineral and Coal Mining No.4/2009 is the main regulating law for coal mining in the country.

Report Highlights

- The MEMR is responsible for the formulation of national and technical policies in the fields of energy and mineral resources. It aims to achieve independence in security and energy to maintain growth and prosperity.
- The Directorate General of Mineral and Coal is a subsidiary of the Ministry of Energy and Mineral Resources. It is responsible for carrying out development work in the fields of mineral and coal mining. It also formulates tasks and technical consistencies, implements policies and standards, and provides supervision and assessment for coal mining.
- The Ministry of Environment assists the President in formulating policies and coordinating environmental planning, implementation, monitoring and control in Indonesia.
- National legislation through Law No. 10/1997 on Nuclear authorized the Nuclear Energy Control Board (BAPETEN) to supervise the use of nuclear power, includes the licensing, inspection and enforcement of regulations.
- Law 4/2009 on Mineral and Coal Mining governs the mining sector in Indonesia. The new law replaced the old Law No.11 of 1967, with an objective of increasing domestic and foreign investments in mining.

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Report Scope

The report outlines Indonesia's governing bodies, governing laws, mining licenses, mining rights and obligations, key fiscal terms which includes central taxes, royalties, capital gains tax, corporate taxes, depreciation, real property tax, withholding tax, land tax, branch profits tax, loss carry forward and VAT.

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