Indonesia Mining 2012 - GBR

Mining IN Indonesia
Shantui Bulldozer SD32W in a limestone mine in Cirebon. Photo courtesy of GM Tractors.
Contractors
The true impact of PerMen 28 will only
manifest itself in the next year, but Indonesia’s
typically variable regulatory framework
leaves contractors tentatively optimistic,
even in the face of potentially unfavorable
legislation.
Some companies are actually set to enjoy
advantages from the new requirements.
“Although we have yet to experience any
of the benefits, the 2009 Mining Law puts
Petrosea, a local Indonesian company, in
an advantageous position when compared
to many of our foreign competitors for any
given project,” said Wadiono Suidantoro,
president director, PT Petrosea, one of Indonesia’s
fast-growing mining contractors.
Petrosea also sees its impressive growth
as a long-term trend. “In 2011, Petrosea’s
revenue grew by more than 50% when compared
to that of the previous year. In 2012,
we are expecting another year-on-year increase
in revenues of 50%. In the next
three to five years we would like to have
15% market share. To grow at this rate, we
will have to invest $150 million per year
for the next three years. The vast majority
of this amount will go into equipment and
capacity buildup, while the remainder will
go into spare parts and supporting equipment,”
said Suidantoro.
Across the board, contractors are willing
to work with a difficult situation rather
than against it. “[The new mining law] is a
change, and we look at changes as opportunities.
While some of the changes have
been rather challenging, some can be seen
in a positive light. Those are the rules of
the game, and if we want to play then we
have to abide by those rules. We have to
do the best we can in terms of our value
proposition to fit into those rules; it is not
always easy, but the team we have is more
than capable of the task. A cornerstone of
the 2009 Mining Law is to provide greater
opportunity to small ‘local’ mining services
companies. Working together with local
communities and local contractors has always
been something we feel we do better
than most, so in this respect nothing has
changed,” said Justin Colling, president
director, PT Leighton Indonesia.
The potential for Indonesia is such that,
for Leighton, there is no question of giving
up. “The Leighton Group has a broad
sphere of operations, working across Australia-Pacific,
Asia, India, the Middle East
and Africa. This geographic spread is a key
part of the Group’s strategy to diversify its
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