Friday (18/10), PT. Freeport Indonesia (PTFI) cooperates with the Faculty of Economics and Business Universitas Gadjah Mada (FEB UGM), which held a Mining Talk titled “Natural Resource Management” as an effort to build closer ties with the public through comprehensive education about the benefits of mining activities. Indonesia has very high mineral reserves. In nickel minerals, Indonesia ranks third in the global level. In addition, Indonesia recorded a 39% contribution to gold products, ranking second after China. This makes Indonesia always in the top 10 in the world. With its enormous potential, the mining sector contributes in to non-tax state revenue (PNBP). In their applications, mining companies refer to the principles of sustainability in the use of natural resources to achieve the greatest prosperity for people and the Sustainable Development Goals (SDGs).
This discussion was motivated by the need for a good understanding of stakeholders in the management of the mining industry. Moreover, PTFI is conducting a new assessment to complete the divestment process of shares and is now moving from a Contract of Work to a Special Mining Business License (IUPK). Through this IUPK, the Indonesian government has provided long-term business certainty by extending the operating period to 2 x 10 years until 2041 and providing fiscal and regulatory guarantees.
Eko Suwardi, M.Sc., Ph.D., as the Dean of FEB UGM, delivered a speech signaling the start of the event. “I think we remember in the 4th paragraph our country’s goal is to advance public welfare, that we must take advantage of the earth’s water and its contents for the benefit of the people, one of which is mining,” Eko said.
Eko Suwardi also emphasized that young people should care about the development of the mining sector. “Therefore, it is our duty as the young generation to know about mining in our country; this is very important for us as the next generation to know about mining from people who manage natural resources in Papua”, he added.
The next session featured a presentation on the mining sector in Indonesia by Tony Wenas, President Director of PT Freeport Indonesia. Tony Wenas, as the keynote speaker at this event, began the discussion by giving a description of the mining sector. “Speaking of mining, starting from our activities after waking up, almost all of us are involved in goods that are 90% derived from mining materials. Mining takes us to the era of civilization”, he added.
According to him, Indonesia is a rich country in terms of mining, oil and gas, plantations, and forestry. However, he believes that much of Indonesia’s natural wealth has not yet been explored. “For example, our total gold production can still last up to another 30 years, our copper will be 100 years, tin 11 years, nickel 58 years, and coal 49 years. Therefore, if that time period runs out, it must be continued exploration because mining goods are non-renewable”, Tony said.
He added that, despite the high mining risk and the relatively long return on capital, Indonesia’s mineral potential is in the best position in the index. “Our tin is the biggest, copper is number two, nickel is number three, and therefore we are one of the biggest mining producers in the world”, he said.
In addition, he added that mining also generates large revenues on the export side, because most mining goods are well in demand at the export market, and also good for the formation of GDP, because mining contributes 4.70% to Indonesia’s current GDP.
When discussing the price of mining goods, he said the price factor was beyond the producer’s control. “Mining goods are price takers; we accept existing market prices, which will be greatly influenced by supply and demand”, he said.
He also explained the correlation between supply and demand in the mining market. “Too much supply will reduce prices, and some companies will stop production, to the point where prices will rise again. When viewed from demand, demand is still high, but there are some factors beyond that that make prices depressed, such as international politics, ” he closed.
After Tony Wenas’s material presentation, the event concluded with the distribution of souvenirs and a photo session between the deans and lecturers of FEB UGM and the board of directors of PT Freeport Indonesia.
Source: Sony Budiarso / Leila Chanifah Zuhri
