Challenges of the Mining Industry in Indonesia

The mining industry constitutes one pilar national economic development. This industry is run by mining companies that conduct Natural Resources Management (SDA) to be utilized for the development and welfare of the Indonesian people. What comes to mind when you hear the word ‘mining’? Mining is identical as a sector that brings in many benefits due to its abundant mineral yield. In fact, the mining industry also faces many challenges in the process.

What are the challenges of the mining industry in Indonesia?

Fluctuating Market Prices

The selling price of gold counts quite fluctuating. There are several factors that cause fluctuations in the market price of antam gold, some among which are the USD exchange rate, the amount of gold production in the world, the amount of gold reserves in the central bank, inflation, and increasing demand for gold.

The high low USD exchange rate is influences against the price of antam gold, the stronger the exchange rate, then the lower the price of gold, the opposite. Demand for gold also had a strong effect on gold prices. According to economic law, the higher the demand, then the higher the selling value.


Although it has a high chance of coming right a lot of profit, starting a mining business requires no small capital. Funding has therefore become one of the challenges for mining business operators.

Today, mining is becoming more difficult because business operators need to dig deeper to get earth minerals. The deeper the excavation, then the higher the risk and cost required to minimize the risk resulting from mining activity. In addition to employment risks, the cost of caring for public welfare and the mining area environment also needs to be taken into account.

Amount of Illegal Mining Activity

Mine constitutes wealth ruled by country. That is, any company that intends to engage in mining activities is obliged to pocket an official government permit to manage a specific mining area. Although there has been quite a clear regulation, many illegal mining activities are still occurring.

The reason is, illegal mining done responsible people tends to end in environmental breakdown. After obtaining earth minerals, illegal miners left their mooring holes in their moorings. In addition to being dangerous, the former mine pit is also difficult to reactivate by the surrounding communities.

Sustainable Development

Good mining activity is that accompanied by efforts to care for public welfare and the environment around the planned mining area. Environmental and social issues pose a challenge for any enterprise implementing mining activity. Each company needs to understand what sustainable mining practices are all about. Sustainable mining practices are a guide for individual mining activity operators to remain attentive to public welfare and the environment. There are four main points covered in the forecast guide continuous mining tick:

Economic growth. As one state inflow, mining management companies are expected to contribute to maintaining and improving Indonesia’s economic growth.
Opens a job field. To carry out Mining activity, not a small amount of labor required. The hope, with the opening of mine management in a region, may increase the number of job availability.

Reduce poverty. Mining activity offender not only opens jobs for the surrounding community, but also pays attention to the welfare of the candidates and/or their workers. That way, the perpetrators of mining activity have contributed to reducing poverty. Environmental balance. As knitted, mining activity does have a risk to the environment. Therefore, individual mining activity operators need to pay special attention to environmental treatment and rehabilitation during and post-mining.


Thus is the article on Industry Challenge mining in Indonesia. If you have any questions you can ask them in the comments column below. Thank you. Thank you. Thank you.

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