The National Assembly of Indonesia has taken more than 3 years to discuss about new law and approved at its plenary session held on the 16th of December New Mining Law. In view of the importance of Indonesia as a country to supply nickel resource, the parties concerned in nickel business have been highly interested in knowing about the contents of this new law and how to determine its stipulations.

According to the statistics released by the Ministry of Finance, Japan imported 2,075,000 tonnes in material of nickel ore, 95,124 tonnes in material of nickel matte and 1,951 tonnes in material of ferronickel from Indonesia in January to December 2007 period. Therefore, Indonesia is one of important sources for Japan to import nickel resources.

The reactions to this new mining law taken by the industries concerned in nickel are

1. It will become difficult to invest large amount in mining projects by overseas enterprises and this problem is due to the revocation of COW and subject to mining permission

2. A period for exploration is 8 years as the maximum and a period for production is 20 years as the maximum with twice renewals to be allowed for 10 years as the maximum in each case. Also, the existing COW is still effective in the period but will be applied to new mining law within one year

3. Many of the parties concerned have understood that the obligation to add values to commodities produced in Indonesia and the existing COW has to be respected, but it is still necessary to study this new mining law and its detailed regulations

Indonesia has taken more than 3 years to discuss about revision of mining law, causing to continue an unstable political situation, but New Mining Law has been approved and, consequently, it is expected that active projects to invest in developments of mineral resources will come up hereafter. The central government of Indonesia is scheduled to grant IUPK (Special Mining Permission) by means of giving priority to national corporations and domestic enterprises.