Mining
law in Indonesia is governed by the Law on Mineral and Coal Mining
No. 4 of
2009, dated 12
January 2009 (“Mining Law”). The
Mining Law provides
general provisions regarding coal and mineral mining activities
in Indonesia. Further, a number of implementing regulations have been
subsequently enacted by the Government (both central and regional) as an
implementation of the provisions of the Mining Law. The implementing
regulations are in the form of, among others, Government Regulations, Minister of Energy
and Mineral Resources
(“MEMR”) Regulations, and Director General of Mineral and Coal
(“DGMC”) Regulations. The main implanting regulations of the Mining Law are,
among others, as follows:
a) Government
Regulation No. 22 of 2010 regarding Mining Areas (“GR 22/2010”);
b) Government Regulation
No. 23 of
2010, as amended
by Government Regulation No. 24 of 2012, Government Regulation No. 1 of
2014, Government Regulation No. 77 of 2014 and Government Regulation No. 1 of
2017 regarding the Implementation of Mineral and Coal Business Activity (“GR
23/2010”);
c) Government
Regulation No. 55 of 2010 regarding the Fostering and Supervision of
Implementation of Mineral and Coal Mining Business Management;
d) Government
Regulation No. 78 of 2010 regarding Reclamation and Mine Closures (“GR
78/2010”);
e) MEMR
Regulation No. 34 of 2009 regarding the Domestic Market Obligation;
f) MEMR
Regulation No. 02 of 2013 regarding the Supervision of Management
Implementation of Mining Business by Provincial and Regency/Municipality
Government (“MEMR Regulation 02/2013”);
g) MEMR
Regulation No. 43 of 2015 regarding Procedures to Evaluate the Issuance of
Mining Business License (“MEMR Regulation No. 43/2015”);
h)
MEMR
Regulation No. 5 of 2017 as amended by MEMR Regulation No. 28 of 2017 regarding
Increase of Added Value of Minerals through Activities of
Processing and Refining/Smelting Domestically (“MEMR
Regulation No. 5/2017”);
i) MEMR
Regulation No. 6 of 2017 as amended by MEMR Regulation No.
35 of 2017
regarding the Procedures
and Requirements for the
Export of Processed
and Refined Minerals (“MEMR
Regulation No. 6 of 2017”);
j) MEMR
Regulation No. 9 of 2017 regarding Procedures for Shares Divestment and
Mechanism to Determine the Price For Shares Divestment in the Minerals and Coal
Business Activity (“MEMR No. 9 of 2017”);
k) MEMR Regulation
No. 34 of
2017 regarding Licensing Minerals and
Coal Sector (“MEMR Regulation No. 34/2017”); and
l) Circular Letter
No. 10.E/30/DJB/2017 in
regards with the Further Implementation of MEMR Regulation
No. 34/2017 (“Letter No. 10/2017”).