Indonesia's new mining law and its impact

Indonesia is a country close to China and rich in mineral resources. In Suharto era, COW/COOW had been proved to be effective in attracting foreign investment. In post- Suharto era, the old mining legal system has been not worked until the new mining law was issued in 2009. In this paper, the background on the issue of new mining law is analyzed in details and the differences between new and old legal system are listed. The new law is close to international convention,complies with new investment law and narrows the gap between domestic and foreign investment. The issue of new mining law is progress, but less attracts foreign investment by contrast with COW/COOW.