The Ministry of Energy and Mineral Resources (ESDM) reported that investment in the mineral and coal (minerba) sector reached USD 4.98 billion by October 2024, or about 62% of the USD 8.08 billion annual target. For comparison, in 2023, the minerba sector achieved USD 7.46 billion in investments, equivalent to IDR 116.61 trillion (using an exchange rate of IDR 15,631 per USD). Data from Minerba One Data Indonesia (MODI) as of June 20, 2024, showed the sector reaching USD 3.62 billion, representing 44.83% of the year’s target. Julian Ambassadur Shiddiq, Director of Mineral and Coal Program Development at ESDM, stated that the recent 62% figure reflects delayed updates to the MODI data. Shiddiq noted that some investment delays this year resulted from companies adjusting business strategies and procurement timelines.
To accelerate investment, ESDM will hold the ASEAN Mining Conference in Bali and the Mining Expo in Jakarta to promote Indonesia’s investment potential. The Indonesian Coal Mining Association (APBI) cited three main challenges for reaching only 62% of the target by mid-2024, including prolonged permitting processes, financing difficulties, and delays in procuring heavy equipment. APBI Executive Director Gita Mahyarani noted infrastructure permits have taken significant time, affecting project timelines. Despite these challenges, ESDM remains optimistic about meeting the USD 8.08 billion target, with major projects by Freeport Indonesia and Amman Mineral expected to bolster year-end investment realization.
