Indonesia launches SIMBARA

Indonesia has launched SIMBARA, an online tracking system to monitor the movement of nickel and tin from mines to processing facilities, aiming to boost accountability and revenue. Initially used for coal since 2022, the system now expands to these minerals, with hopes to replicate its success in improving governance and compliance.

Finance Minister Sri Mulyani Indrawati highlighted SIMBARA’s role in enforcing state liabilities for coal companies and expects similar results for nickel and tin. The system will oversee transport logistics and documentation, integrating with mining quota records (RKAB).

Coordinating Minister Luhut Pandjaitan estimates compliance improvements could increase royalty payments by 5 to 10 trillion rupiah ($308-$616 million) annually. Nickel miners hope SIMBARA will curb illegal mining and prevent oversupply by tracking smelter production against ore purchases.

Mining Minister Arifin Tasrif plans to expand SIMBARA to other minerals, including gold and copper, and integrate compliance checks for manpower and environmental regulations.

Attribution: Reuters