Exploration and Project Development Risk Reduction Approaches in the PacRim ù The Indonesian Experience

This paper will review the experiences of both big and small exploration/mining companies (local and foreign investors), including the impediments to exploration and project development in Indonesia since the Contract of Work was first introduced there (1967 Minerals, 1981 Coal). This is seen through the eyes of a person who has been employed in a managerial capacity in large and small concerns, and more recently as an independent consultant. Comment will be made on the political, legislative and social constraints imposed by the presence of a large group of disparate artisans (illegal miners) who now form a significant component of the Indonesian mining industry; the Bre-X debacle; the impact of the recent Regional Autonomy legislation; and changes to the Mining, Forestry and Environmental Acts. An overall view (including statistics) will be presented as to how recent Indonesian developments have affected international confidence in investing in its mineral sector over the past decade and it will be placed in an international competitive context.