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ining companies have warned the government that its tendency to switch from one policy and regulation to another is one of the main reasons for layoffs in the industry.

The warning came following a recent incident that put major gold and copper miner PT Freeport Indonesia, a unit of United States-based Freeport McMoRan, in the spotlight once again as hundreds of its former workers at the Grasberg mine in Papua became embroiled in a violent protest.

The former workers invaded a security post and set fire to some of the firm’s facilities.

The affair seems to have been the latest escalation in prolonged labor unrest at Freeport Indonesia, thousands of whose workers and former workers have been involved in a series of rallies and strikes since May.

The former workers have been protesting at the company’s firing and furloughing of 4,100 members of the Chemical, Energy and Mining Workers’ Union (SPKEP) and the All Indonesia Labor Union (SPSI).

As President Joko “Jokowi” Widodo’s administration seeks more investment to support Indonesia’s economic growth, it is worth noting that the recent layoffs stemmed from the government’s decision to enforce a partial ban on the export of mineral ores at the beginning of this year, said Irwandy Arif, chairman of the Indonesian Mining Institute (IMI).

While the government cannot be fully blamed for Freeport Indonesia’s decision, he noted, the country’s stance on mineral exports had flip-flopped since 2009, causing uncertainty in what is well-known as a sector that requires long-term investment and planning.

“The government should really stop changing its policies all the time. For example, the export of mineral concentrates was once banned but then allowed and banned again, so many firms are simply waiting for the next policy change,” he said during a workshop held by the Indonesian Employers Association (Apindo) on Wednesday.

In an attempt to develop the country’s downstream mining industry the 2009 Mining Law stipulated that all exports of mineral ores had to be banned by 2014 and that smelters must be developed.

However, the implementation of the policy was postponed until this year, after which the government decided to enforce the ban only on miners that refused to convert to a special mining license (IUPK), failed to divest 51 percent of their shares to national entities and did not develop smelters within five years of conversion.

The constant change in policies have led to miners keeping a tight lid on their coffers, and the easiest way to cut costs, Irwandy argued, was to conduct major layoffs.

Freeport Indonesia had started laying off its workers earlier this year when the ban was enforced, as it had to suspend its production for several months.

Aside from affecting business certainty, constantly changing policies could also affect global commodity prices and eventually put pressure on firms to slash costs by firing workers, Irwandy said.

“The government must ensure an investment climate that is conducive by issuing regulations and policies that support development and investment in the mining sector,” he said.

Meanwhile, Muliawan Margadana, Apindo mineral and coal division head, said each mining company in Indonesia spent only about 15 percent of its total costs on workers’ wages, but the country had a much higher minimum wage compared to its Southeast Asian neighbors such as Vietnam and Laos.