Jakarta, CNBC Indonesia – Prices of mining commodities, both coal and minerals, are currently soaring. In fact, the price of coal has almost touched US$ 300 per ton, the highest since at least 2008.
In the midst of passionate mining commodity prices, this is not the case in terms of investment.
The Ministry of Energy and Mineral Resources (ESDM) noted that until the third quarter of 2021, investment in the mineral and coal mining sub-sector (minerba) had only reached US$ 2.7 billion or around Rp 38 trillion (assuming an exchange rate of Rp. 14,100 per US$) or only 62.7% of this year’s target of US$ 4.3 billion.
This was conveyed by the Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin.
He admitted, specifically in the investment sector, it was not as good as other achievements, such as Non-Tax State Revenue (PNBP), which had exceeded the target.
“Investment is indeed not as good as other achievements, from the 2021 target of US $ 4.3 billion, until the third quarter we have reached US $ 2.7 billion or 62.7%,” he said in an online press conference, Tuesday (26 /10/2021).
According to him, one of the obstacles facing this investment is the Covid-19 pandemic. His party will also ask for input from various parties regarding investment in the mineral and coal mining sector.
“If the regulations are clearer, we will try to support both permits. Another thing we need to try is to provide a more comfortable investment climate for companies,” he explained.
He further said that currently the government is also considering making regulations for the submission of an Environmental Impact Analysis (AMDAL) where later the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources will process the AMDAL application and permits or approvals for the use of forest areas to the Ministry of Environment.
“In the past or now we have submitted an AMDAL, Forest Area Use (P2KH) or Borrow-to-Use Forest Area (IPPKH) we have created a new mechanism, what we propose is the government, Minerba, who communicates with LHK.
It should be noted that coal prices managed to rise in trading earlier this week. However, the price of the black stone is still stuck below US$ 200/ton. Yesterday, the price of coal on the ICE Newcastle (Australia) market was recorded at US$ 195.3/ton. Soared 2.25% from last weekend’s position.
The price of coal this year is indeed crazy. Since the end of 2020 (year-to-date), the price of this commodity has skyrocketed by 139.93%. The combination of supply and demand has boosted coal prices.
Meanwhile, for mineral commodities such as gold, world gold prices fell slightly in trading this morning. On Tuesday (26/10/2021) at 07:29 WIB, the world gold price on the spot market was recorded at US$ 1,806.08/troy ounce, slightly down 0.08% from the previous day’s position.
Commodity copper prices rose in trading this morning driven by demand as a hedge against inflation and concerns over low inventories.
On Tuesday (26/10/2021) at 08.06 WIB, the world copper price was recorded at US$ 9,861.50/ton, up 0.21% compared to yesterday’s position.
Then for nickel, its inventory fell to its lowest level since 2019 keeping the rate of nickel on trend bullish (strengthening) and maintained at the level of US$ 20,000/ton.
On Monday (25/10/2021) at 14:10 WIB, the world nickel price was recorded at US$ 20,015/ton, up 1.4% compared to last weekend’s closing price.
(wia)
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