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Indonesia’s Mining Industry, 1997–2014: An Institutional Assessment

In: Southeast Asia beyond Crises and Traps

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  • Wahyu Prasetyawan

    (Islamic State University Syarif Hidayatullah)

Abstract

This chapter argues that the 1997–98 crisis and Law 4 2009 drastically transformed the distribution of rents from mining resources among the players who include the central and local governments and the foreign companies. The enactment of Law 4 2009 on minerals and coal and its implementing regulations specifically expanded the power of local governments. This law banned the export of raw minerals. A moderate but stagnant economic growth of about 5 per cent in 2014 did not constitute a strong economic basis for a prolonged export restriction of unprocessed minerals. Therefore, the government had to settle with foreign mining companies in the country.

Suggested Citation

  • Wahyu Prasetyawan, 2017. "Indonesia’s Mining Industry, 1997–2014: An Institutional Assessment," Studies in Economic Transition, in: Boo Teik Khoo & Keiichi Tsunekawa & Motoko Kawano (ed.), Southeast Asia beyond Crises and Traps, chapter 9, pages 251-276, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-3-319-55038-1_9
    DOI: 10.1007/978-3-319-55038-1_9
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