REPUBLIKA.CO.ID, JAKARTA - Demand for coal and other main minerals in Indonesia will increase within next three years, according to a Indonesian Mine 2013, a survey on trends in mining industry, which is conducted by PwC Indonesia. The survey also indicates that the increase is supported by the increasing price of coal and other minerals except gold's price which is still fluctiative.

"Majority of respondents believe there is still a significant amount of reserves in Indonesia. The respondents also expect thermal coal price will steadily increase," partner of tax service at PT Prima Wacana Caraka, Ali Mardi said on Thursday.

In terms of investment climate, Mardi said the respondents had already reported this unfortunate situation.  The latest was the Fraser Institute survey whose results were published in February 2013. The survey put Indonesia in the worst position in terms of potential policy compared to 95 other countries. This results caused Indonesia got very small chunk of investment, less than three percent of global exploration spending.

However, Mardi added, although with such a perception, 83 percent of survey participants said they would increase their investment in Indonesia. Most of respondents or 45 percent of them would continue to acquire reserves and 30 percent would increase capital expenditures.

The majority of respondents (59 percent) estimates the main funding sources of the capital increase will come from third-party loan. It seems reasonable according to low interest rate at global level. 

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