Innovation and Transparency in Natural Resource Management through the Mineral and Coal Information System

Jakarta, INTI - Indonesia's mining sector plays a strategic role in the national economy. Therefore, innovation and increased efficiency, as well as transparency in natural resource management, are required. On Monday (22/7), the Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut B. Pandjaitan, attended the Launching and Socialization of the Implementation of Nickel and Tin Commodities through the Mineral and Coal Information System (Simbara) in Jakarta. He stated that this is a crucial moment in the governance of mineral commodities, especially nickel and tin, which are integrated from upstream to downstream by several ministries in one portal, the Mineral and Coal Information System (SIMBARA).

"Ultimately, nickel and tin commodities are ready to be implemented in SIMBARA," said Menko Luhut in his speech.

Challenges and Potential of Nickel and Tin Commodities

The nickel commodity, with its downstream processing and increasing investments in mining and refining industries, has made business processes on the ground more complex. Meanwhile, for the tin commodity, the issues are not only related to illegal mining practices but also legal business processes that still have many problems, indicating governance weaknesses that need to be addressed.

"In 2022, non-tax state revenues (PNBP) from the mining sector reached IDR 183.5 trillion, and in 2023 it was IDR 172.9 trillion, showing how significant the mining sector's contribution is to state revenue. It is important to maintain good governance," added Menko Luhut.

Functions and Benefits of SIMBARA

SIMBARA is designed as a digital platform capable of facilitating the management, monitoring, and reporting of data more effectively and accurately. This system is used as a monitoring tool for commodity movements aimed at reducing natural resource leakage and optimizing state revenues. Besides state revenue, another crucial aspect is maintaining governance through transparency and traceability of mining commodities.

"Through this system, we can monitor every stage of the commodity movement process, from production to refining, to transportation and sales, more transparently and accountably," explained Menko Luhut.

System Development for Compliance and Anti-Corruption

Menko Luhut also explained that this system would be further developed to ensure business actors' compliance with forestry, environmental, and labor regulations. "The development of SIMBARA has also identified corruption-prone gaps and simultaneously closed them with more effective digital systems and mechanisms. Hopefully, our joint efforts will provide optimal benefits for managing mineral commodities as strategic national commodities, thereby providing maximum contributions to state revenue and the welfare of the people," he concluded.

With SIMBARA, it is hoped that Indonesia's natural resource management can be carried out better, more efficiently, and transparently, thus supporting national economic growth and public welfare.

Invitation to Attend INTI 2024

Don't miss the opportunity to attend the largest technology and innovation exhibition in Indonesia, Indonesia Technology and Innovation 2024 (INTI 2024), which will be held at JI-EXPO on August 12-14, 2024. For more information, visit https://inti.asia/.