The Ministry of Energy and Mineral Resources (ESDM) plans to simplify the process of applying for mining exploration permits and production permits by making them one package of permits. The Director-General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, said that this step was taken to reduce the processing time for permits related to the mining sector. "When [managing] the exploration permit, they will receive a production operation permit later, one permit will be made, unless the company does not continue exploration. So it can take less time to get the permit," he said during the webinar of The 9th US-Indonesia Investment Summit, Wednesday (15/12/2021).
Initially, he said, the government separated two different permits for exploration and production. However, currently, the Ministry will shorten the permit. "So we will reduce the time it takes to get the permit, and we will provide opportunities, in this case, mining companies," he explained. Furthermore, the mining industry is said to have experienced an increase amid economic pressure due to the prolonged Covid-19 pandemic. This year's production target is even increased in the middle of the year from 550 million tons to 625 million tons.
However, Ridwan said, investment in the mining sector is still not as expected. The Ministry's latest note, investment in the mineral and coal sector reached US$2.7 billion in the third quarter of 2021 or 62.7% of the US$4.3 target by the end of the year. Ridwan also said that the government continues to encourage the removal of the mineral and coal sectors. In total, the government is targeting the construction of 54 smelters by 2024. Some of them are already operating. The executive, he said, would also encourage investment in the refining process in Indonesia from abroad. International cooperation continues to be carried out, including in the financing sector.
