Jakarta mining policy shift sparks turmoil

Jakarta

A CONTROVERSIAL U-turn on mineral exports has sparked turmoil in Indonesia's key mining sector, providing a fresh headache for firms struggling to work in South-east Asia's biggest economy.

Despite sitting atop some of the world's most abundant natural resources, successive governments have failed to take advantage of Indonesia's vast riches, with critics blaming badly thought-out and nationalistic policies that make the country an uncertain place to invest.

And the latest overhaul has sparked a potentially damaging standoff with one of the United States' biggest miners and a major investor in the country.

Jakarta in January relaxed a 2014 landmark ban on shipments of raw mineral ores, which was originally aimed at spurring the domestic smeltin…