Outstanding Issues in Mineral Resource Economics: The Case of Indonesia

Abstract— Mining industry in Indonesia has proven to give good results as a source of state revenue. However, the development of the mining sector in order to create people welfare is facing various problems. Critical issues as reviewed in this article related to mineral and energy resources economics are divided into eight sections, namely economic modeling, regional and sub-regional development, regional autonomy, contract of work, management of resources and modern management, mineral added value, policies, and outlooks. Problems associated with those issues should be solved immediately so that Indonesia can determine the direction of development of mineral and energy resources in the future. In order to solve these problems, there must be management and supervision as well as good cooperation between stakeholders those are government, mining companies, and the society so that mining sector could perform its function toward Indonesia incorporated in achieving sustainable development. Methodology applied in this study is based on description and analysis related to the author’s experiences and professionals.

Keywords Outstanding issues, mineral resource economics, mining

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