Indonesia is an archipelago made up of approximately 17,508 islands; it is currently the largest economy in Southeast Asia and maintains membership within the G-20. Mining makes up about 11.9 percent of the economy in Indonesia. Foreign direct investment in in Indonesia’s mining hit $3.6 billion last year. It is the world’s top producer of tin and nickel, and the world’s fourth largest copper producer. Other commodities produced in the country include gold, coal, oil, gas, silver and bauxite.
Mining in the country has suffered many setbacks due to protesting and corruption. Other problems that have posed challenges to the development of mining in the country include a lack of infrastructure, unequal resource distribution, poverty and a complex regulatory environment. The Department of Energy and Mineral Resources, tasked with regulating the country’s mining industry is currently working hard to clean up the Indonesia’s mining business.
Despite the negatives, foreign investors continue to flock to the region to develop new mines and expand old ones. Indonesia’s mining industry is currently undergoing a period of rapid growth, and is expected to post double-digit growth percentages for the coming years.