Indonesia’s Mining Downstream Policy: A Study of Mineral Processing and Purification Obligations Circa 2009

Genio Ladyan Finasisca, Tri Hayati

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


A new Indonesian law regulating mineral and coal mining was enacted in 2009 with a high expectation that it would take the Indonesian mining sector to the next stage and encourage economic growth. This law imposes certain new regulations on the mining sector via a mining downstream policy, which includes the obligation to process and refine extracted minerals in Indonesia and prohibits exporting raw unprocessed minerals. Hence, this policy stipulation can be regarded as a reformation of mineral mining practices in Indonesia. Since 2009, certain regulations have been applied as derivations of Indonesian Law number 4/2009 regarding mineral processing and purification obligations, which are elaborated on and analyzed in this research. This research uses doctrinal research methods, supported by non-doctrinal research, to provide a complete picture of Indonesia’s mining downstream policy on mineral processing and purification obligations. Regulatory and practice approach methods are employed to analyze mining downstream systems in Indonesia. The results of this study indicate that these regulations were issued to restore Indonesia’s constitution, which stipulates that mineral resources are owned by Indonesia as a nation, and to end the “honeymoon” phase of foreign miners. In this study, Indonesia’s mining downstream policy is reviewed and analyzed to propose a development framework that provides a fair mining downstream system for all stakeholders.

Original languageEnglish
Title of host publicationChallenges of Law and Governance in Indonesia in the Disruptive Era I
PublisherNova Science Publisher Inc.
Number of pages15
ISBN (Electronic)9781536193480
ISBN (Print)9781536191295
Publication statusPublished - 1 Jan 2021


  • minerals
  • mining downstream policy
  • processing and purification obligations
  • welfare state


Dive into the research topics of 'Indonesia’s Mining Downstream Policy: A Study of Mineral Processing and Purification Obligations Circa 2009'. Together they form a unique fingerprint.

Cite this