The Indonesian parliament has proposed a revision of the country’s mining law to accelerate the development of its mineral processing industry.
The proposed revision aims to regulate mining permits for religious groups and universities, according to a report by Reuters.
The move aligns with President Prabowo Subianto’s commitment to expedite the energy transition and mineral processing industry.
A formal deliberation process for the law revision was agreed upon in a parliamentary plenary meeting on 23 January.
The draft revisions suggest giving certain companies priority access to mining areas for “down streaming” purposes.
Companies may be prioritised according to the size of their investment, their plans for adding value to minerals and the creation of jobs for local workers, the report said.
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By GlobalDataAdditionally, the draft proposes prioritising religious groups and universities for access to certain metal ore mining areas.
The allocation will be based on the scale of the mines and the capacity of the institutions to oversee them.
In 2024, Indonesia issued a regulation allowing religious organisations to manage mining assets as a source of income.
The legislative body also proposed prioritising allocation of mining areas smaller than 2,500 hectares to small businesses in a bid to support local economies.
The Indonesian Government is said to be contemplating substantial reductions in nickel mine quotas, with production potentially falling from 272 million tonnes (mt) in 2024 to 150mt this year.
Macquarie Group pointed out that these cuts could lead to a notable increase in prices, underlining the vital contribution of Indonesian nickel production to the global market.
In 2024, nickel prices recorded a second straight annual loss, driven by rising output from Indonesia and decreased demand from both battery manufacturers and the stainless steel industry.
Despite being a major global producer, Indonesia struggled to meet demand last year due to government restrictions, leading to record imports from the Philippines.
