International Journal of Science and Research (IJSR)

ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426

Nickel Mining Policy Model Post Reform in

Indonesia
Jamal Bake1, Nurwati2, Abdul Kadir3, La Ode Mustafa Rufini4
1
Department of Administration, Faculty of Social and Political Sciences, University of HaluOleo, Indonesia
2
Faculty of Economics and Business, University of Halu Oleo, Indonesia
3, 4
Department of Administration, Faculty of Social and Political Sciences, University of HaluOleo, Indonesia

Abstract: The nickel mining policy has not yet prospered, there have been conflicts, land speculation, imbalanced negotiations,
environmental destruction, and licensing that is a requirement for corruption. This research explains and analyzes: 1) Direction of
nickel mining policy reform; 2) The model of nickel mining policy post-reform. The study used a qualitative approach, literature review,
policy review, secondary data collection, interviews with resource persons and analyzed it descriptively. Conclusions: 1) Reform of nickel
mining policies is directed at increasing added value, competitiveness, legal certainty, justice, participation, transparency, accountability,
sustainability and environmental insight to increase the income of the people, regions and countries, and create jobs; 2) The model of
nickel mining policy after the reformation applied a rational approach, it can be seen from the principles and objectives of nickel mine
management that it is clearer, referring to all aspects, considering profit and loss, paying attention to the potential for the benefit of the
State and society; The nickel mining policy as a cycle, starting from formulation, implementation and evaluation is characteristic of the
incremental model. The role of government institutions, the private sector and the public in advocating post-reform mining policies as a
feature of the institutional model in the implementation of public policy.

Keywords: Reform, Policy Model, Nickel Mine

1. Introduction deposits of nickel reserves in Indonesia. The survey results

only find location points containing nickel by relying on
The mine of local minerals in the form of nickel is one of the satellite photos, aerial photography or exploration at
metal elements originating from the bowels of the earth, locations that naturally contain nickel reserves with varying
which existence is scarce only in certain regions. In the list yields from one region to another (Ministry of Mines and
of types of commodities of economic value, nickel is one of Energy, Republic of Indonesia, 2016).
the metal mineral mining materials with the symbol of the
element Ni, which can be used for various industrial Five activities that describe the stages of mining operations
purposes. Because of limited availability, nickel is a mining according to the International Financial Reporting Standards
product that assesses high economy, and becomes a (2007), namely exploration, evaluation, development,
commodity needed by humanity along with the development production, closure and rehabilitation. Exploration is a
of science and technology, especially in the field of industry, search for resources that are feasible for commercial
nickel management increasingly requires regulations, exploitation. Evaluation is intended to determine the
regulations or policies that lead to efficient, economical use, technical and commercial feasibility of mineral resources.
benefits, added value and attention to environmental aspects The development stage is the laying of access and the
and in each processing. According to TauliCorpuz, at.,all provision of facilities for extracting and transporting
(2015) and Devi (2013) in (Mustafa, Alam and Bake; 2016) production. The production business is carried out to obtain
that mineral mining including nickel has become the most products that are worth selling from mineral supplies. The
important economic activity in the mining producing closure was carried out after the mining operation stopped,
country. including the restoration and rehabilitation of the site, a
former nickel mining processing area.
The demand for nickel mining is increasing because of the
unique nature of this metal which is unique chemically. Van Bemmelen (1949) in (Pardiarto; 2013) placed nickel as
According to Pardiarto (2013) the element of Ni is very a second class mine from three other groups. First is the
reactive with oxygen so that the presence of nickel in nature organic mineral class consisting of petroleum, natural gas,
is in the form of compounds. Although nickel is reactive to coal and asphalt; The two groups of metal seeds are tin,
oxygen, it does not corrode, so it has an important role in the gold, silver, bauxite, nickel, manganese, copper, zinc and
steel industry. A mixture of nickel with chrome and iron platinum; Third, groups of inorganic minerals not metal ore,
produces stainless steel which is commonly called stainless such as phosphate, sulfur (sulfur), iodine, limestone and
steel.Indonesia is a leading producer of minerals in the mercury. Nickel is one of the metal mineral mining materials
world, especially nickel with the largest nickel potential with the symbol of the element Ni. Ni is very reactive with
distribution in the eastern part of Indonesia, namely oxygen so that the presence of nickel in nature is a
Sulawesi, Papua, West Kalimantan, Maluku and surrounding compound. Although nickel is reactive to oxygen, it does not
areas. Based on geologinesia.com data (2016) there are corrode, so it has an important role in the steel industry.
currently 15 nickel mining companies operating in Nickel as one of the metal mineral mining materials with the
Indonesia. No research has found a definite number of symbol of the element Ni. Ni is very reactive with oxygen so
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 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426
that the presence of nickel in nature is a compound. also used to make Palinit and Invar, nickel alloys which
Although nickel is reactive to oxygen, it does not corrode, so have the same expansion coefficient as glass, used as
it has an important role in the steel industry. A mixture of electrical wires planted in glass, for example in incandescent
nickel with chrome and iron produces stainless steel which light bulbs. Nickel powder is used as a catalyst for example
is commonly called stainless steel. Nickel (Ni) is a metal hydrogenation (compaction) of coconut oil and also in
that has physical properties such as shiny white, very hard, kerosene processing. The largest percentage of this
does not rust and is resistant to dilute acids. Because of that, allocation is for stainless steel, reaching 67%. Whereas the
continued Pardiarto (2013), are mostly intended to coat use of ferronickel only for alloy steel and stainless steel
items made of iron, copper and steel because nickel has reached 98% (Pardiarto; 2013).Mining as an economic
hardness, corrosion resistance and is easily shiny when activity, starting from the process or extraction of minerals
rubbed. In addition, nickel is also used to make stainless from the earth (Indecon International Economic Consultants,
steel and alloys or nickel with copper mixtures or some other 2013). Mining efforts are carried out to provide the basic
important metals for industry. Some examples of alloys are material needed to develop and expand humanitarian living
Monel, which is a mixture of nickel with copper and iron standards. Mining provides raw resources that are filtered
(Ni, Cu, Fe) used to make electrical transmission into every product, service and luxury in modern society
instruments, Nicrom (Ni, Fe, Cr) is used as heating wire, and (Hoffman, 2013).
Alniko (Al, Ni, Fe, Co ) used to make magnets. Nickel is

Figure 1: Map of the distribution of nickel potential in Indonesia

Source: Geology Agency, 2011

According to Pardiarto (2013), the condition of the tropical Island, Cyclops Mountains and Central Papua Mountains.
regions of Indonesia with high rainfall and sunlight The total resources of laterite nickel ore in Indonesia are
throughout the day, plays an important role in the based on data from the Mineral Resource Balance from the
weathering process and the dissolution of elements found in Center for Geological Resources, Geology Agency in 2012
the original rock strongly supports the formation of laterite it was 3,398,269,997 tons, and the total reserves were
nickel deposits. Changes in temperature are large enough to 18,723,558 tons. The average cutoff grade of nickel ore
assist in the occurrence of mechanical weathering with the mined is ± 0.8%. The highest level of nickel can reach above
formation of fractures in rocks that will facilitate the process 10%.Nickel resources in 2011 and the largest nickel reserves
or chemical reaction in rocks. The speed and intensity of in 2001 in Sulawesi and North Maluku. On Sulawesi Island,
chemical weathering will be helped by the existence of the provinces of South Sulawesi, Central Sulawesi and
reliefs in the form of gentle slopes with slopes between 10- Southeast Sulawesi have the largest potential for nickel ore
30 °. In gentle slope morphology, rainwater can move more in Indonesia, with total resources of 27,421,301 tons and
slowly so that it has the chance to seep through rock cracks total reserves of 11,674,940 tons. The Halmahera area has a
or pores. In the soil, CO2 contained in ground water plays an total resource of 11,890,645 tons and a total reserve of
important role in the chemical weathering process. Laterite 7,048,618 tons. In Papua nickel laterite deposits are spread
nickel deposits in Indonesia follow the distribution of base in the Waigeo Islands and the Cyclops Mountains area with
and ultrabasic rocks, found in the Meratus Mountains and a total resource of 10,313,056 tons, while in Kalimantan data
the Borneo Sea Island, the eastern arm of Sulawesi Island. In on nickel ore resources is only found in the GunungNuih
North Maluku, it is located on Obi Island, Gebe and area of 608,400 tons (Pardiarto; 2013).
Halmahera Islands, and in Papua on Gag Island, Waige

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Figure 2: Graph of ferronickel production growth according to producing regions, in Indonesia

Source: Pardiarto (2013)

Ferro nickel production and nickel ore in Indonesia 2005 - strategic or class A excavators, in addition to coal,
2010 (in tons).Fluctuating production of ferro nickel and petroleum, natural gas, uranium and tin. Therefore, every
nickel ore from year to year. The period of 2005 to 2010 the policy related to the management of nickel mines can ideally
highest ferronickel production in 2010 amounted to 18,688 provide guarantees to improve the welfare of the people,
tons, while the highest nickel ore production in 2008 avoid conflicts, contribute to foreign exchange, provide
amounted to 10,634,452 tons (Directorate General of employment, be managed responsibly and provide benefits
Mineral and Coal, Ministry of Mines and Energy of the to the regions and surrounding communities. But
Republic of Indonesia). The nickel mine management policy empirically, these expectations have not yet been realized,
is intended to overcome mineral processing conflicts, even the opposite is true. This can be seen from a number of
provide protection and legalize the processing of natural facts including:
resources so that they are beneficial to the State and the
progress of the area where mining products are obtained. First, since the identification phase of mine potential, there
Dewey (1927) in Mustafa, Alam and Bake (2016) asserted have been pros and cons that have triggered the seeds of
that every policy of the authority owner is intended to solve division in the community, related to land ownership, issues
public problems (public policy focuses on ‘the public and its of road damage, limited electricity, resistance of local
problems). Despite the fact, the potential of mineral mines communities to foreign cultural intervention with the
that are abundant in many developing countries, including in development of mineral mining industrialization;
Indonesia has not been able to bring blessings to its citizens
in real terms. Mining in some developing countries Second, the impartiality of the government, especially the
according to the World Bank (2002) in Mustafa, Alam and local government in terms of land acquisition, even a lot of
Bake (2016), precisely supports the Mining is Bad land speculation has occurred (the case of the Nickel Mine
hypothesis, a story about a country that does not get better in North Konawe Southeast Sulawesi), including unequal
despite having abundant mineral potential due to errors in negotiations between land owners and investors, to
resource management policies the mining and due to the intimidation of power to local people who own land or
weaknesses of the institutions that developed it. ulayakland (case in Bombana, and Konawe Selatan,
Southeast Sulawesi);
In Indonesia, the nickel mining policy is legally
administered, included in the mineral mining regulations. Third, there is a conflict in the management of the mine,
Mineral mine arrangements have changed since 1999 in line with the conflict as follows: a) Conflict among fellow
with the decentralization of authority from the central citizens, including the case in Bombana, Southeast Sulawesi;
government to the regions within the framework of regional b) conflicts between the government and employers,
autonomy. Efforts to optimize mineral mining management including cases of conflict between PT TimahTbk and the
for regional progress and citizen welfare began in 2009, government of the Bangka Belitung district, in Tin Mining
through the Law of the Republic of Indonesia Number 4 of in the Bangka Belitung Islands, Sumatra); c) Conflicts
2009 concerning Mineral and Coal Mining. The law covers between companies, including conflicts between PT Indo
the regulation of the Mining Business Permit (IUP) area as a Multi Niaga and PT Intrepid Mines Limited in managing
rationalization of previous policies which are considered not mines at TumpangPitu, in Banyuwangi Regency (Central
to contribute to regional development and the welfare of the Java Province). Fourth, mountain destruction, forest, river
community in theregion.The legal basis for the management and sea destruction and agricultural irrigation water sources
of mineral mines in Indonesia, was born since the include (the case of nickel mines in Bombana, North
Indonesian Shrimp Law No. 11 of 1967 concerning the Konawe and North Kolaka, Southeast Sulawesi); Fifth,
Basic Provisions of Mining known as the Basic Mining Law. scientists and experts who tend to be able to buy credibility
In the law, it was stated that minerals including nickel. that supports capitalism by producing recommendations for
Republic of Indonesia Government Regulation No. 27 of analysis of the environmental impacts of the mining industry
1980 concerning Classification of Excavated Materials that are not in accordance with the facts and tend to benefit
specifically states that nickel is categorized as a group of investors, for example of PT AdidayaTangguh's nickel

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mining exploration in Ternate and the Sula Islands in North conclusions expressing the degree of confidence in a policy
Maluku, and nickel mines on Kabaena Island, Bombana, claim. Governments make policies for political, social,
Southeast Sulawesi; moral, economic failures or due to market failures (Kraft &
Furlong, 2012). Public policy involves the key role of public
Sixth, open employment in the management of mineral actors but is not exclusive (Hill &Hupe, 2014). There are
mines is actually used by foreign workers (including from two main features of public policy, namely stability, where
China) who work for Chinese companies that invest in the policy changes are only marginal, while change is a
mining processing industry in Indonesia, (the case in fundamental renewal of policy content. Today's
Morowali (Central Sulawesi), Morosi and Bombana phenomenon of policy changes is more prominent than
(Southeast Sulawesi); Seventh, the process of administering policy stability (Aslinda, 2014). Changes in policy include
the establishment of a mining company, land acquisition and major and minor changes in a policy subsystem in
the granting of nickel mining business licenses is done government (Aslinda& Ibrahim, 2014) and Mustafa, Alam,
improperly, there are illegal levies, and corruption by local and Bake (2016).
officials. Examples include the case of BuchariMatta as
Regent in Kolaka Regency, and NurAlam, as Governor of The development of policy studies leads to the discovery of
Southeast Sulawesi for the 2013-2018 period. patterns or models of policy analysis that are illustrated
through the formulation, implementation process, essence
On the other hand, populist mining management is assumed and problem-solving orientation, policy impact, policy
by the community to be able to process the potential of principles and arguments, policy scope, involvement of
nickel mines, unable to operate due to limited capital and institutions and actors, and environment that influence
technology, inability to manage mines in a professional policy. The policy model is an abstraction of empirical
manner which has an impact on environmental damage that phenomena in the policy that Dunn calls it a simple
is difficult to control, creates horizontal conflicts, and representation of the choice of actions in managing problems
practices illegal management of nickel mines and other and developing potential for specific purposes expressed in
minerals, which are detrimental to the State and regions, the form of statements, concepts, theories, images, diagrams
especially mining producing regions. This condition is or graphs and mathematical models. The public policy
thought to have an association with the mineral mining model has certain characteristics which are shown simply
management policy model in Indonesia. The objectives of and clearly, the accuracy in determining dimensions or
this study are: 1) Describe and analyze the direction of the aspects related to policy problems, easily understood and
reform of nickel mine management policies in Indonesia; 2) communicated, easy to understand the context and content
Describe and analyze the model of nickel mine management of the policy and provide a clear picture of what is going to
policy post-reform in Indonesia. happen by predicting consequences or impact of policy.

2. Theory of Policy Model Criteria for policy models according to E.S. Quade (1982) in
Nugroho (2006) includes; a) Analytic model, carried out
Public policy focuses on "the public and its problems" through an operational research approach; b) Simulation
(Dewey, 1927) public policy is a study of "how, why and to models, policies formulated beginning with a quasi-
what effect particular courses of courses of action and experimental, analog model, computer use; c) Game models,
inaction" (Heidenheimer, et.al, 1990). Dye (2010) mentions humans are directly involved, war games, simultaneous
what government’s do, why they do it, and what difference involvement; d) The assessment model, carried out explicitly
does it make. While Nagel (1990) states that public policy is to obtain verbal expressions, in the form of analogies, in
the study of the nature, causes, and effects of public policies. mind, and mental models. The policy model according to
According to Anderson policy as a way of acting or acting Dunn (2008) includes; a) Descriptive models, explain or
inadvertently is done by an actor or a set of actors in dealing predict the causes and consequences of policy choices or
with a problem or concern (Smith &Larimer, 2009). Dye decisions; b) The normative model explains, predicts,
(2010) states that public policies include anything the recommends business optimization; c) Cost and benefit
government chooses to do or not do. analysis model; d) Verbal models of descriptive and
normative expressions, in the form of: verbal, symbolic, and
According to Dunn (2008) there is a set of dichotomous procedural, using everyday language, using reason in the
assumptions in developing policy arguments for deciding the form of value arguments; e) Symbolic models use
best as the authority owner's provisions: a) policy-relevant mathematical symbols to explain the relationship or
information as a starting point in policy formulation; b) causality between variables using actual data; f) Procedural
Policy claims (policy claim), as the initial conclusion of the models, using simulation procedures, decision making
policy as a logical consequence of the available information; theory (alternative determination), assumption data (relative
c) Warrants, in the form of data-supported statements to / weight). Policy as a model is seen from the way or
strengthen policy arguments; d) Support (backing) for policy approach of the authority in carrying out public policy in
justification in the form of additional information for accordance with its authority.
unacceptable justification of the visible value, which allows
the analysis to move backward and state the accompanying Parsons (2001), Dunn (2008); Dye (2010), Dror (2017)
assumptions; e) Rebuttal (Rebuttal), which is the second mentions the model of the policy approach, namely: First,
conclusion or argument that states the original claim is not comprehensive rational; emphasizing the process of policy
accepted, or the original claim can be received at a certain formulation using a rational approach by considering a
degree of acceptance; f) Conclusions (qualifier), or number of aspects, based on accurate, valid and actual data,
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analysed every opportunity and threat, strengths and alternatives that might be chosen as the best policy. The
weaknesses, and relying on information that supports rational model emphasizes strong specialization which can
decision making. Decisions are taken after considering a actually be a burden because of the demands of work and
number of aspects, and choosing the least risky alternative, diverse problems amid time constraints to solve various
the least likely, and most efficient failure. Policy is seen as a problems at the same time. Rationalism tries to learn all the
rational choice from a series of alternatives that exist to value preferences that exist in society, give each value
solve problems. The stages are carried out through relative weights, find all existing policy alternatives, know
identification of all community values and given weights, all the consequences of each alternative, calculate how the
knowing the alternatives available and all possible selection of one policy will influence the remaining
consequences of each selected policy, calculating the ratio alternatives in terms of opportunity costs, and finally choose
between the values achieved with the sacrifices incurred or alternatives the most efficient policy in terms of costs,
those borne by the community. benefits and social value "(Henry 2007, p. 290)."
Rationalism tries to learn all of the extant in a society value
The rational model produces conditions that vary with the preferences, assign each value relative, discover all the
most rational decisions, because decision makers act as if in policy alternatives available, know all the consequences of
the realm of absolute rationality, there are no limits (both each alternative, will affect the remaining alternatives, and
cognitive and political) that suppress it. But in fact, ultimately select the policy alternative that is the most
rationality is never absolute, but rationality is always limited efficient in terms of the costs and benefits of social values
because organizational actors (see Herbert Simon and James "(Henry 2007, p. 290).Global rationality, the rationality of
March; 1958), always act within the limits of certain logical neoclassical theory, assumes that the decision maker has a
rationalities, where decision choices are subject to comprehensive, functional utility that knows all the
limitations that originate from human nature itself alternatives that are available for choice, and the alternative
(Profiroiu, 2006). In fact, the actions of decision makers in process that maximizes expected utility. Bounded
the public sector are faced with the main constraints related rationality, behavioural considerations, the decision maker
to several factors according to Profiroiu (2006: 164 - 165), must search for alternatives, the egregiously incomplete and
namely first, the assumptions of efficiency, effectiveness inaccurate knowledge about the consequences of actions,
and economics are not valid values in the public sector. In and the processes that are expected to be satisfactory.
the public sector consideration of budget allocations and Targets while satisfying constraints). (Simon, 1997, p. 17) in
expenditure resources, facilities, budgets, and not to increase Gustavo Barros, 2010; 3).
income, or results, as done in (private profit-oriented)
companies. There is a parity of information between The rationality model targets policy makers to: 1) Know all
empirical facts and available data (because not all related people's desires and their weight; 2) Knowing all available
information is controlled by decision makers), making alternatives; 3) Knowing all alternative consequences; 4)
public decision makers act with incorrect data or invalid or Calculating the ratio of achievement of social value to each
even unavailable data. alternative; 5) choose the most efficient alternative public
policy. The ability to accurately calculate the cost to benefit
Selection criteria are rare, because there are very few ratio is required. In fact, values and trends that develop in
methods available to determine the profit and loss of public society cannot be detected as a whole, making it difficult for
policy, other than because interest groups or political groups policymakers to determine the direction of policies made.
(Williamson) intervene make decisions far from their Specifically, economically rational model, emphasizes the
rationality. Some individuals may not act unless they have efficiency and economic value of each policy, while the
enough information, and others cannot decide unless rationality of objectives, and requires the existence of
alternatives are reduced to smaller amounts, making the experiments to determine alternatives so that decisions are
chosen situation trigger psychological tension. The decision- made to be effective.
making process is often expressed through moments of
uncertainty, pressure and tension. The decision maker's Second, the incremental model as proposed by Lindblom
ability to support a psychological situation of choice varies (1959), namely that policies are built on the premise that
from one person to another. The rational understanding every decision in an organization cannot be formulated
model is a criticism of (Stella and Matthew (2006), where in rationally, can be satisfactory or carried out efficiently
practice, this model is not always in accordance with the because of the limited rationality of actors as described by
actual process in adopting public decisions. Limitations of Simon (1955) quoted by Barros (2010: 3). Policies are based
information and not all aspects of supporting policies are in on past experience and achievements by calculating targets
the control of actor control, then the behavior of actors and that will be achieved linearly from time to time.
interest groups who tend to take advantage of opportunities Assumptions and incremental model criteria include: a)
to benefit themselves (parochial traits), making policies Assessing alternative policies not based on problems
farther away from their rationality. comprehensively but rather focusing only on policies that
differ from time to time incrementally; b) Only a small
The rational model assumes that policymakers have the time number of policy alternatives are considered, the
to overcome challenges in a rational way, to identify all the assumptions are continuity and sustainability; c) Barriers
detailed and comprehensive potential tools to achieve the experienced by policy makers are redefined according to the
stated goals and evaluate all these methods based on changes that occur; d) The best problem solving is based on
efficiency, economy and effectiveness. In real terms, there previous experience. Some considerations that are the
are limitations to human rationality in identifying reasons for choosing this model include: 1) The
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achievements that need to be continuously improved, Policy issues are an agenda or agreement on the results of a
making the allocation of resources focused on achieving the compromise or even the results of conflicts that occur
targets set; 2) As a strategy to overcome deadlock due to the between political elite groups. Communities do not have
many interests that make policies fragmented into different access and do not have the power to influence policies which
interests; 3) There are doubts about the emergence of should be a political agenda at the top level. Bureaucrats or
unwanted impacts from a new policy; The weakness of this administrators only become mediators for the course of
model is that it often ignores changes in values in society information flowing from top to bottom. The political elite
that continue to experience the dynamics resulting from the maintain the status quo and policies tend to be conservative,
improvement itself in a sustainable manner. and policy changes tend to be evolutionary and incremental.
At a certain level, policies are made on behalf of the people,
Third, institutional models. According to Dye (2010), policy or at least the citizens they represent, because they need
is seen as an activity of government institutions (policy as mass support for power. But what is voiced is only an
institutional activity). The criteria or characteristics of the offense to seize resources within the government. In many
institutional model are a) the Government provides legality facts (cases in Indonesia) there is often no social contract
and recognition of formalization of public policy; b) Public through modern political processes such as those described
policies made by government institutions are universal, by Thomas Hobbes, John Locke, and Jean-Jacques Rousseau
applicable to all interested parties; 3) The government has that in political society there is a social contract between
the right to monopolize and even be forced by institutions people who choose the political elite chosen to occupy
that have the authority to implement policies. The power , and the realization of political promises is realized
assumption of an institutional model is that each government through pro-people policies, and or political sanctions on the
institution has the authority, role and function in the ruling elite given in the next election process. Rulers occupy
implementation of policies both as policy makers, positions in the legislature through a general election
implementers and supervisors. Different things are the types process, but generally those who succeed in gaining votes
of authority, scope and scope and the magnitude of their are those who have the money to buy voters' votes (giving
responsibilities. In the implementation of policy requires money secretly to voters during elections) or through the
coordination across actors and between government practice of money politics.
institutions both internally and externally, both vertically
and horizontally. The community must obey, because there Fifth, the group model (the group theory) views public
is social and political legitimacy, it can even use coercion or policy as a product of group struggle. Public policy is a point
the right to impose rules that have been made, by institutions of equilibrium in a struggle between groups as a result of
that have the authority as mandated by law. The law negotiations and compromise of interest groups in the
stipulates the state institutional structure as the organizer of process of formulation and implementation of policies.
the legislative, executive and judicial branches, as well as Policy is seen as the result of a compromise and the right of
the distribution of power, checks and balances between the parties who have the authority and / or factions in the
institutions in the government. government as a coalition agreement that each element has a
contribution and contribution so that they are also
Fourth, elite mass models. The elite theory of the time saw responsible for its implementation.
that in the country concerned, the system of government was
not yet supported by a democratic political culture. The Dye (2010) explains "what is called the public policy is that
system of government can be based on the principle of the equilibrium is reached, and it is a balance which
democracy but it has not yet proceeded in a consolidated contending factions or groups constantly strive to tip in their
manner. In this theory, Dye (2010) confirms the following; favor. The legislature referees the group struggle, ratifies the
a) Society is divided into small groups that are very victories of the successful coalition, and records of the
powerful and another group that is powerless depending on surrenders, compromises, and requests in the form of
the willingness of small groups as elite ruling; b) This ruling statutes "The group model is an abstraction of the policy-
elite group comes from the middle to upper class who have making process in which interested parties try to influence
similar values; c) The transfer from non-elite groups to elite the content and form of policy. Policy making is seen as an
groups is very limited to maintaining stability and survival. effort to respond to the demands of various interest groups
Only those who have accepted the basic elite consensus can through bargaining, negotiation and compromise.
be accepted; d) Public policies are made for the benefit of Competing interest demands among influential groups are
elite ruling, and do not reflect the needs and desires of the managed. Competition between interest groups is essentially
masses; e) Changes in public policy are only incremental a balance that is achieved in the struggle between groups to
and not revolutionary; f) More elite groups influence the fight for their respective interests in a momentum. In order
masses, rather than vice versa.The mass elite model for this fight to be non-destructive, the political system is
emphasizes the understanding that policy as a preference is obliged to direct group conflict, through: a) Establishing the
the decision of elites in the country, because in society rules of the game in fighting for group interests; b)
power is not evenly distributed. Political power is Prioritizing compromise and balance of interests; c)
concentrated in a small group of citizens as a group of rulers Building compromise in setting public policies, and d)
who actively influence the administration of the State and Striving for the realization of the results of the compromise.
the majority-controlled group (a class that rules and class
that is ruled), which is passive towards government policy. Interest groups have a major contribution in influencing
policy. The strength of the influence of interest groups is
determined by the number of members, wealth assets,
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organizational strength, leadership, close relationships must be resolved, rules and constitutions underlying the state
between personnel and decision makers, including internal system, technological systems and policy environments in
cohesion there is a level of implementation ,. Competition the form of political, globalization, economic, social and
between groups is also one of the factors that determine the community culture. It is David Easton (1965) who built the
effectiveness of policies in achieving their goals. Classical analogy of the system as a biological system, where
hierarchical model states that the formulation and disruption of one component of the system, would make the
implementation of policies are separate and sequential system unable to walk. Biological system is an interaction
activities because of the division of labour between groups between the components that make up the organism, if one
that formulate policies, those who implement and those who part is disturbed it will be felt by the other part. In a political
evaluate policies. Policymakers begin the process of and policy system, something similar will also happen,
formulating policies because they have information, can where the disruption of one element of the system
approve priorities between different goals because they have component will make the system not run or hampered, so
the knowledge and authority to run it. The executor of the that the policy will not run smoothly. Good input will
policy has the technical ability, compliance and willingness support a good political process, and will produce policies
to implement the policy in accordance with the direction and that can be implemented, accepted and successfully achieved
mandate which is revealed explicitly and implicitly in the its objectives. Good policies, implemented well, surely the
policy. While monitoring is carried out to ensure that the results will be good if all the groups that make up the
wisdom runs on the right track in accordance with the religious system are fulfilled according to what they require.
direction and direction of the policy. Finally, policy
evaluation is done after the policy has been formulated or Seventh, the cycle model, considers that policy is a recurring
after the policy has been implemented to check: a) To what and ongoingprocess that runs dynamically. The public policy
extent the policy is made through procedures that are in cycle model is carried out starting from identifying and
accordance with constitutional norms, ethics and rules at recognizing problems, formulating agendas, formulating
every level of authority; b) How far the contents of the policies, adopting policies, implementing policies and
policy are relevant to the problems to be resolved, expressed evaluating policies that are carried out continuously and
in clear, easy to understand, not multiple interpretations, and evaluated at all times to ensure the policy runs properly, and
do not overlap each other and do not exclude each other with evaluation results form the basis for gradual improvement
policies; c) How true is the implementation of custom in according to environmental changes that affect policy.
accordance with the directions mandated in policy, Public policy is a routine process that recurs from year to
according to norms, principles and recommendations year, from one event to another. To achieve maximum
explicitly contained in policy, to the extent that the results in policy implementation, inhibiting political pressure
discretion carried out by executives does not conflict with must be minimized; actor actors understand the main tasks
the substance, principles and principles of policy and functions in carrying out policies. The implementation
implementation; d) To what extent the targets set in the form of policies is usually not done by force, because it must be
of results, benefits and impacts to be achieved can be persuasion, negotiation and compromise with other
realized in accordance with the quantity and quality interested parties.The concept of policy cycle revolved as
expected. already mentioned around the triad of policy formation,
implementation and termination, whereby evaluation was
Sixth, the model system theory, assumes that public policy is deemed crucial as a cybernetic loop to gathering and
a response of the political system to requests that arise in the feedingback policy relevant information. The underlying
community environment. Input from the environment in the scientific logic (Wittrock, Wagner and Wollman, 1991:615),
form of requests (demands) and support (supports). This and vision of a science driven policy model was epitomized
support can be in the form of compliance with the law, by Donald Campbells famous call for en experimenting
paying taxes, voting in elections, and supporting the society (reforms as experiment, Campbell 1969) (Wollmann,
implementation of policies. Public policy is a product of a 2007; 396).
political system, a government system and how a leader or
institution that has the authority to carry out policies, 3. Research Methods
manage inputs, process data and information in a system of
decision making to produce policies that can be The research method uses a qualitative approach. The stages
implemented, accepted by all parties. In this context, policy of the study range from literature review, policy review and
is not in a vacuum, but is coloured by a political system secondary data collection from various official and trusted
whether a system of democracy, authoritarianism or a sources, conducting interviews with officials and several
system of social-democratic governments. The democratic mine processors in the Southeast Sulawesi region as one of
system is characterized by a participatory policy formulation the largest nickel producers in Indonesia. Data analysis was
process, listening to aspirations (demand said), an carried out in a qualitative descriptive manner with a main
authoritarian system of government seen from among others focus on the explanation of the direction of reform and the
the process of formulating policies according to the will of nickel mining management policy model in the reform era in
the authorities (top said), while the social democratic system Indonesia.
or welfare state is a combination of both.

The system perspective considers that policy is the result of

a process that uses input in the formulation of policies in the
form of data, information related to issues and problems that
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4. Results and Discussion Before there was Government Regulation No. 1 of 2014,
entrepreneurs could export raw nickel ore. Since the
a) Nickel Mining Policy Reform introduction of Regulation No. 1 of 2014, the ban on the
From the beginning after independence, the management export of raw mineral materials has been imposed. This
policy of nickel mining in Indonesia refers to Law Number policy requires the processing of mineral raw material raw
11 of 1967 concerning Mining Provisions. Along with the materials to be carried out domestically, before being
development of science and technology, the Act was no exported in the form of finished materials (metal). This
longer relevant then it was later revised with Law Number 4 prohibition has caused many companies to stop mining
of 2009 concerning mining, minerals (nickel) and coal. In activities because they have not yet built a smelter and
the Law, it is explicitly stated that domestic mineral mine refining of nickel ore. The high cost of investment makes the
processing including nickel mining must be carried out construction of smelter and refining nickel ore not yet
independently, reliably, transparently, competitively, developed by Indonesian investors (except PT Aneka
efficiently, and environmentally, in order to ensure Tambang). There are considerations of business
sustainable national development. opportunities to make Indonesian businessmen reluctant to
build nickel processing industries, including large
In Indonesia, mineral mining businesses adhere to the investment costs, making capital owners from Indonesia
principles of benefit, sustainability, fairness, participation, prefer to invest in other sectors that are faster to provide
transparency, accountability, compliance with regulations, benefits, such as property businesses and other industries.
and environmental sustainability in accordance with the Today many investors from China are investing in the nickel
principles of good mining governance. Every mining processing industry, since the Indonesian government
business must be able to contribute to the progress of the banned the export of ore as raw material starting in 2014.
region and the welfare of the community wherever the
mineral mine is located and developed. Nickel as a mineral Management of nickel mines in accordance with Indonesian
contained in the legal territory of Indonesian mining is government regulations refers to the points of management
natural wealth, has an important role in fulfilling the lives of of mineral and coal mines carried out through: 1) General
many people. The management is controlled by the State to investigations, namely geological or geophysical
provide real added value to the national economy in an effort investigations on land, water, and air, with the intention of
to achieve equitable prosperity of the people. Both Law making general geological maps or establishing signs of
Number 11 of 1967 concerning mining provisions and Law discovery Minerals; 2) Exploration, namely mining
Number 4 of 2009 concerning mining, minerals and coal are geological investigation to determine more accurately the
both products from the central government. Local existence of an excavation material and the nature of the
governments or companies that are interested in excavated material; 3) Exploitation, mining business to
implementing nickel mining investments must comply with produce minerals and their benefits for human life; 4)
the law. The nickel mine management policy has Processing and refining, to enhance the quality of minerals
experienced at least three changes, starting with Law No. 37 and efforts to utilize and obtain elements found in nickel-
Year 1960 concerning Mining (State Gazette of 1960 No. containing minerals; 5) Transportation, namely the transfer
199). At the central government level the formation of the of processing results or the results of purification from the
Law is a legislative authority, while at the operational level exploration area or refining place; 6) Sales, namely the sale
executive power makes policies as operational references for of excavated materials from the processing or refining of
nickel mine management that are made to maximize the minerals to the market (national or export markets). The
added value of the management of nickel mines. following is a comparison of the contents of the nickel mine
management policy before and after the reform:

Component Before the Reform Reform Era

Legal basis Law Law No. 4 of 2009 concerning Mineral and Coal Mining
No.11 of 1967 concerning Basic Provisions
for Mining
Principles and Not explicitly mentioned. All minerals Principle:
objectives contained in the Indonesian mining a)benefits, fairness and balance;
jurisdiction which are natural deposits as the b) partiality to the interests of the nation;
gift of God Almighty are the National wealth c) participatory, transparency, and accountability;
of the Indonesian Nation and are therefore d) sustainable and environmentally sound.
controlled and used by the State for the Aim:
greatest possible welfare of the people. a) guarantee the effectiveness of the implementation and control of
mining business activities in a efficient, effective and competitive
manner;b) guarantee the benefits of sustainable and environmentally
sound mining;c) guarantee the availability of minerals as raw material for
domestic needs;d) support and develop national capabilities to be better
able to compete at national, regional and international levels;e)
increasing the income of local, regional and state people, and creating
employment opportunities for the greatest welfare of the people;f)
guarantee legal certainty in the conduct of mining business activities
Mastery / Government; controlled by the state, 1) Government and legislative members in setting policies
Authority for organized by the government (Minister) and / 2) Minister if the Mining Business Permit area is located in the province
management or Provincial government and supervised by 3) Governor if the Mining Business Permit area is in the Regency / City
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and the Minister / Ministry Region
supervision 4) Regents / Mayors if the Mining Business Permit Area is in one District
/ City area
Land Use Restrictions on land that can be cultivated are Land restrictions that can be cultivated and before entering the stage of
Distribution of carried out, not mined at the location of public production operations, must settle land rights with holders of land rights;
Mining Areas facilities There are regional developments: namely Mining Business, People's
Mining and State Reserve Areas
Rights and Meet financial obligations in accordance with 1) Finance: paying for state and regional income: Taxes, Non-Tax State
Obligations of applicable rules; minimal liability in Revenues, and contributions;
Nickel Mining environmental aspects 2) Environment: a) Good mining practices; b) planned reclamation, post-
Processors mining and conservation, along with funds provided;
3) Holders of Business Licenses Trading in production operations is
obliged to process and refine domestic mining products for Value Added;
4) Prioritizing the use of local labor;
5) The production operation phase, must involve local entrepreneurs;
6) Develop community development and empowerment programs;
7) Use local and / or national mining services companies such as
consultation and planning
Sanctions 1) Criminal provisions are less burdensome 1) Administrative Sanctions that are strong enough for Mining Business
(imprisonment for a maximum of six years Permit holders to commit violations in the form of: written warnings,
and / or a fine of a maximum of five hundred temporary suspension of part or all of exploration or production
thousand rupiahs; operations and / or revocation of Mining Business licenses
2) There are no criminal sanctions for issuing 2) maximum jail time of 10 years and a maximum fine of 10 billion
permits rupiah;
Source: Summarized from the Mining Law before reform Law Number 37 Year 1960 and after reform, Law Number 4 Year
2009.

b) Nickel Mining Policy Model In Reform Era of policies as references in the formulation of new policies is
Nickel mining as a strategic commodity, every processing an illustration of the implementation of the policy cycle
must provide the maximum benefit for the welfare of the model, as well as nickel mine management policies. The
people of Indonesia. The constitution mandates that natural cycle model asserts that every policy that has been made
wealth must be controlled by the State and used for the established and implemented needs to be followed up with
greatest benefit of the people. The management of nickel the evaluation of impacts and policy services. When the
mining must provide significant added value to state policy is irrelevant, its implementation is ineffective and, it
revenues, to be further used for the welfare of the cannot overcome the existing problems, the policy revision
community. It is a challenge for the continuation of nickel becomes necessary.
business, so as not only to consider the value of short-term
benefits but also the role in the contribution of long-term Policy reforms led to the rationalization of the nickel mine
development. Dye (2010) and Henry (2007) state that such a management system illustrated through several aspects:
model is called comprehensive rational, where the nickel First, affirmation of the principles and objectives of mine
mine management policy, in addition to considering its management. The principles of benefit, justice, balance,
economic aspects, benefits the region and its community, alignments with the interests of the nation, participation,
also considers the sustainability aspects and environmental transparency, and accountability, are sustainable and
sustainability aspects. The process begins with identifying environmentally sound as the basis for the management of
potentials and objectives, analysing all opportunities to the nickel mine. The objectives of mine management are
choose information and comparing each available expressly explained, namely: a) guaranteeing the
information, choosing the best alternative, maximizing effectiveness of the implementation and control of mining
values and objectives and making feedback after evaluation business activities in a efficient, effective and competitive
and implementation. This is in line with Mercier (2008: 149) manner; b) guarantee the benefits of sustainable and
that rational decision models are carried out through stages environmentally sound mining; c) guarantee the availability
of identifying values and objectives, analysing all of minerals as raw material for domestic needs; d) support
alternatives, researching and selecting information based on and develop national capabilities to be better able to
the efficiency and effectiveness of various alternatives, compete at national, regional and international levels; e)
calculating consequences and choosing the best alternative. increasing the income of local, regional and state people,
and creating employment opportunities for the greatest
The policy revision is carried out after evaluating the welfare of the people; f) guarantee legal certainty in the
suitability of the existing rules with the current conditions. conduct of mining business activities. This approach
The policy evaluation approach as a reference in formulating according to Lindblom (1958) is called the incremental
new policies or giving birth to a new law, is a feature of the model, because policy is determined based on past
policy cycle model, Dunn (1990) explains that one of the experience.
characteristics of the cycle model in policy implementation.
The process of implementing a nickel mine management Previous management of nickel mines did not take into
policy in Indonesia, beginning with the formulation and account effectiveness, benefit principles, local income
determination of policies, outreach, implementation, competitiveness, job creation and legal certainty. Based on
monitoring and evaluation as well as evaluating the impact that experience, the new mining policy is directed at
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increasing the effectiveness, benefits, legal certainty of To differentiate mining areas, mining development areas are
competitiveness and increasing income for the community defined as mining, community mining and state reserve
and mining producing regions. In the rules of central and areas. Previously there were restrictions on land that could
regional financial balancing (Law No. 33 of 2004 be cultivated, and not mined at the location of public
concerning the financial balance between the central and facilities. Determination of policies that take into account
regional governments, it is explained that the profit sharing the possibility of resistance, conflict and legal certainty are
from the mineral mining sector is 80% for producing part of the rational model. Rationalism according to Henry
regions, and 20% is withdrawn from the central government. (2007; 290) tries to study all value preferences in society,
nickel mines for producing regions to increase people's find information, formulate alternative policies, calculate
prosperity in the region. alternative consequences and consider aspects that affect
alternatives, and the most efficient policies in terms of costs
Second, the mastery, authority and supervision of nickel and benefits of social values become the right choice. Other
mine management involves many institutions in the central rational considerations in nickel mining policies are: 1) The
and regional governments, namely: 1) The Government and abolition of the work contract system, which was in effect
the DPR in determining mining policies; 2) Minister if the before, was considered detrimental to resource-producing
Mining Business Permit area is located in the province; 3) countries because it was only carried out once during the
Governor if the Mining Business License Area is located in nickel mine management process. The current system makes
the Regency / City Region; 4) Regents / Mayors if Mining the government the party that gives permission to the nickel
Business Permit Areas are in one District / City area which mining industry businessmen, every investor who wants to
previously only involved the central government and the manage the mine which is considered more profitable for the
provincial government. From this perspective, the country economically; 2) Current policies regulate and pay
implementation of policies involves many relevant attention to environmental preservation issues due to
institutions as interested parties, Dye (2010) states that the exploration activities. There is an obligation for the
institutional model is seen as an activity of government company to implement the concept of good mining
agencies in providing legality, recognition, formalization, practices, implement a post-mining reclamation and
applies to all interested parties, the government as the owner conservation program in accordance with what is planned to
of the rights has the right to do coercion if the determined be accompanied by funding that supports the program until
policy is not obeyed. Every government institution has the the former mining environment recovers as before. Such
authority, role and function in implementing policies both as arrangement according to Dunn (2008) is a decision that is
policy makers, implementers and supervisors as in the supported by information and the fact that so far, mine
management of nickel mines. The clear distribution of management that does not pay attention to the environment
authority in the implementation of mining policies between and ecosystems, makes the environment damaged and the
the central and regional governments, and the involvement ecosystem disrupted. The true factor is the existence of a
of the parliament (parliament) in the implementation of damaged environment due to mining exploration activities
policies and the broader opportunities of the private sector (cases in Kolaka District and Bombana District in Southeast
including foreign investment in managing nickel mines in Sulawesi). Because the previous policy paid little attention
Indonesia is a manifestation of progressive policy reform in to environmental aspects, the latest regulations began to
the management of nickel mining, which previously only strictly regulate environmental preservation and became the
involved elements of the government and State-Owned obligation of nickel mining companies to: a) realize good
Enterprises. mine governance; b) carry out reclamation, post-mining and
conservation according to the planned plan accompanied by
Third, land use and distribution of mining areas are budget support provided; c) Develop a community
determined by land restrictions that can be cultivated. Before development and empowerment program in the nickel
entering the production operation phase, the employer is mining operation area, as a form of corporate social
obliged to complete land administration matters with the responsibility.
holder of land rights to ensure legal certainty and avoid
conflicts over land in management and plan activities Fourth, there is legal certainty in the form of sanctions for
systematically so that the management of the mine runs on business actors who violate the law. The obligation of the
an ongoing basis. Planning is carried out according to the nickel mining company had previously only fulfilled its
perspective of the interests of all parties, the company, the financial obligations according to the rules and had little
government and the community and around the nickel obligation to address environmental aspects. This is different
mining area. A collaborative approach to policy formulation from the reform era. At present, the obligations of nickel
is one approach taken in mining management. Stiftel (2000: mining companies have a number of obligations, namely: 1)
04) states that good planning is a driving force for financial obligations, namely paying state and regional
implementing good policies. Ferreira et al. (2009: 35) revenues according to company tax, non-tax state revenues
describes collaborative process-oriented policy planning that from the mining industry in the form of royalties, corporate
involves a number of actors over a long period of time social obligations and statutory-regulated contributions
which will facilitate the implementation of each policy. Van shrimp; 2) obligations in the environmental field, namely; a)
Baalen (2006: 198) calls it a collaborative approach that the obligation to conduct an environmental impact analysis
guarantees that every activity runs well and reduces before the company is established; b) resolve the legal status
resistance or resistance from interested parties. of land entered in the mining location; c) realize good
mining practices; d) conduct post-mining reclamation and
conservation; 3) Holders of mining business licenses must
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carry out production operations through processing and concerning the obligation to supply domestic needs; 2) Clear
refining domestic mining products to provide added value to arrangements regarding divestment; 3) Clarity of the
nickel mining products; 4) Prioritizing the use of local percentage of the amount of state revenues from taxes and
labour in management and mining production operations as non-taxes; 4) The authority to grant mining business licenses
a form of commitment by the government and mining is given to regional governments, but has not been
processing companies to absorb local labour in order to accompanied by a clear national policy reference frame; 5)
overcome unemployment, avoid social jealousy and Implementation of pre-existing mining contracts; 6) Various
encourage increased income for communities around the provisions that are very general in nature, rights and
mine; 5) The production operation phase, is obliged to protection for citizens who are victims of the impact of
include local entrepreneurs in order to realize justice in mine mining activities. According to Cloete et al. (2006: 29) the
management, not monopolized by foreign companies; 6) public policy process as illustrated in the management of
Arrange development programs and empowerment of nickel mines is subject to legally formed bodies such as
communities around the mine area as part of corporate social government departments, ideologies and certain systems that
responsibility; 7) Use local and / or national service develop in society. Hyman et al. (2001: 90) asserted that
companies in the process of consulting and planning normative trust in society is the basis of public policy. 7)
business establishment (analysis of environmental impacts) Clarity of management of nickel mines in protected forest
to ensure business certainty in a sustainable manner from the areas and customary forests due to the conversion of forests
technical, economic, social, cultural and environmental after a permit from the government; 8) Harmonization of
aspects of the ecosystem. regulations in the mining sector and the environment, and
the authority of regional governments in managing natural
Through reform, the Indonesian government established resources in their regions are still overlapping so that it
national priorities in national mining policies such as, needs rationalization. The process of making public policy
encouraging increased value added, divestment, auction rationally and systematically, taking into account every
processes in mining operations, and determination of area related element according to Hill &Hupe (2002) helps to
and duration of exploitation. Community rights have been describe the implementation of policies by formulating a
protected from the obligation to develop the community and framework, building assumptions, to diagnose problems,
protect the environment around the mine, to accommodate formulate solutions, explain the process, resource
regional interests, by giving authority to local governments requirements and predict outcomes so policies run
and professional associations involved in planning functions, effectively and can have a positive impact sustainably on all
determining business feasibility, monitoring mining interested parties.
activities. The regulation regarding sanctions is part of an
effort to build legal certainty in the management of nickel 5. Conclusion
mines in Indonesia. Giving administrative sanctions that are
strong enough to the holder of the mining business permit if The reform of the nickel mine management policy in
they commit a violation Procedure for sanctions starting Indonesia is directed at efforts to encourage the increase in
from written warnings, temporary suspension of part or all added value of nickel production, competitiveness, creating
of exploration or production operations and / or revocation legal certainty, realizing the principles of benefits, justice,
of Mining Business licenses. While imprisonment sanctions and balance, national interests, participation, transparency,
for a maximum of 10 years and a maximum fine of 10 and accountability, sustainable and environmentally sound
billion rupiah stipulated in Law No.4 / 2009 concerning for increasing the income of local communities, regions, and
Mineral and Coal Mining. Such arrangements, according to countries, and creating jobs for the greatest welfare of the
the Ministry of Mines, are intended to create legal certainty people.
and prudence in the management of nickel mining, which
was previously not enforced by the government. The model of nickel mine management policy after
reformation in Indonesia is explained as follows: 1)
Changes to the nickel mine management policy were Determination of policies that pay attention to the principles
triggered partly because: 1) public pressure that the nickel and objectives of nickel mine management that are
mine management regulations be evaluated and revised. This increasingly clear, refer to all aspects, consider profit and
is related to the disclosure of business information that gives loss, based on data on the carrying capacity of nickel mining
enlightenment to the community, makes the public business with attention to potential available, basing itself on
understand about the economic value of nickel mining and fulfilling the interests of the State, the region and the
raises awareness to oversee every action and step of the community and involving all interested parties in the process
government in formulating a nickel mining policy; 2) the of implementing a nickel mine management policy is
government's commitment to maximizing the added value of characteristic of a comprehensive rational model so that
each management of natural products, including nickel policy analysis with a rational approach is increasingly
mines, to boost state revenues: 3) The government's political interesting to do; 2) The process of policy formulation,
promise to create new jobs if elected, where mining is one of implementation and evaluation of nickel mine management
the promising sectors for the creation of new jobs , through policies in a sustainable manner and the completion of
the establishment of factory smelters. existing regulations with the current conditions in
formulating a new nickel mine management policy are
The rationalization of the nickel mining sector policy in characteristic of the policy cycle model. 3) Changes in the
Indonesia can still be developed through a number of aspects management policy of the nickel mine towards
according to Juwana (2015), namely: 1) Regulations improvements in the form of increasing the added value of
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