Article

It can be said that 2019 yesterday was a difficult year for business development in Indonesia because Indonesia is holding the general election of president and vice president every five years. Because of the national agenda, a lot of impacts are caused in various sectors, one of which is the influence on the realization of investment in Indonesia. Due to the 2019 general election, many entrepreneurs and investors have postponed investment because the Indonesian economy is under pressure and unstable security conditions.

Not only in 2019, the slowdown in the economy has been felt by entrepreneurs since the previous year in 2018. It has become a subscription if the investment growth cycle always slows down in the political year because entrepreneurs will delay investing until conditions are safe and getting better. One of the national industries that was quite affected by the political year is the mining industry. National political conditions should not have much effect on the national economy and the industrial sector, including the mineral and coal mining industry. Because the government already has a road map of policies that support the growth of various sectors supporting the national economy. But mining entrepreneurs usually wait for the results of the general election whether the government will be consistent in implementing policies in the mining sector or not. Because it is important for the future of the mining industry in Indonesia, as the biggest revenue contributor to the country.

Even though oil and coal prices have declined in the last five years, the mining sector still seems to be supporting Indonesia's economy. In 2016, this industry became the largest contributor to Non-Tax State Revenue from natural resource revenues. Contributions of oil, natural gas, minerals and coal reached Rp. 90 trillion or 95 percent of natural resource revenue. This means that as much as 7.2 percent of the oil and gas, mineral and coal sectors are the main contributors to the 2016 Gross Domestic Product after the trade, agriculture and construction services sectors. In addition, this sector, known as the extractive industry, also became the largest land and building tax payer in 2015, reaching Rp. 27 trillion.

Based on data from the Ministry of Finance, the realization of the Non-Tax State Revenue of the mineral and coal sector as of December 2018 reached Rp 46.6 trillion. Mining activities contribute to the State Revenue and Expenditure Budget, especially from Non-Tax State Revenue, which is very high and its contribution is very significant. The benefits of mining in everyday life can be felt by many people. One example is the mineral in the form of copper which can be used as a basic conductor of electricity, coal can be used as fuel for power plants, aluminum for the packaging industry, and nickel which is used as a material for rechargeable batteries.