Indonesia's Mining Sector Awaits Potential Reform: Revenue Sharing on the Table

Call for Reformulation of Mining Revenue Sharing Scheme

Bisman Bachtiar, Executive Director of Pusat Studi Hukum Energi Pertambangan (Pushep), has emphasized the need for a comprehensive review and potential reformulation of the revenue sharing mechanism in Indonesia's mining industry. This call for reform is part of a broader effort to enhance the attractiveness of Indonesia's mining sector to investors. The proposed changes aim to adjust the distribution of revenues derived from mining activities among the central government, regional governments, and investors.

Addressing Illegal Mining and Enhancing Investor Appeal

The push for reformulation comes as the government continues its efforts to crack down on illegal mining operations. Bisman Bachtiar suggests that alongside these enforcement actions, a more favorable revenue sharing model could significantly boost investor confidence. The reformulation is expected to make the sector more appealing by ensuring a more equitable distribution of mining revenues.

Implications for Indonesia's Mining Industry

The potential reformulation of the revenue sharing scheme is poised to have significant implications for Indonesia's mining sector. By creating a more investor-friendly environment, the government aims to attract increased investment into the sector. This move is seen as crucial for the development of Indonesia's mining industry and its contribution to the national economy.