The breakdown of law and order in many provinces and uncertainty about an ambitious new decentralization programme have cooled investor ardour.
Fresh exploration is virtually on hold as companies wait for the political dust to settle.
Meanwhile, at a time when its economy needs all the help it can get, Indonesia continues to lose investor dollars to more nimble rivals in South America. More ominously, say analysts, the slowdown is robbing the country of vital skills, as geologists, drillers, surveyors and other mining professionals up and leave for more profitable climes. But probably more important is the degradation of mining industry skills. A loss of human capital and expertise will be harder to get back. For Indonesia's economy, already reeling from a loss of investor confidence, the news couldn't come at a worse time.