Indonesia takes a step towards improving transparency and accountability in the mining sector with the launch of the online tracking system SIMBARA for nickel and tin. Following its successful implementation for coal in 2022, the system aims to monitor the movement of these minerals from mines to processing facilities domestically, ultimately increasing government revenue.
Finance Minister Sri Mulyani Indrawati highlighted the positive impact of SIMBARA on the coal sector, emphasizing its role in enforcing compliance with mining quotas and export regulations. The system will now be extended to nickel and tin, with a focus on transportation and monitoring of ore flows, ensuring that miners pay their royalties accurately.
Coordinating Minister of Maritime and Investment Affairs Luhut Pandjaitan expects a significant increase in royalty payments from tin and nickel miners, thanks to improved compliance through SIMBARA. The system also aims to prevent illegal mining activities and oversupply, providing a mechanism to track the production process from start to finish.
Not stopping there, the Indonesian government plans to expand SIMBARA to cover other resources like gold, copper, bauxite, and manganese, signaling a comprehensive approach to resource management. The system will eventually be linked to compliance with labor and environmental regulations, with the power to block sales by miners found violating the rules.
With the implementation of SIMBARA, Indonesia is taking a proactive stance towards sustainable and accountable mining practices, setting a precedent for other countries to follow in the pursuit of responsible resource management.
