Relevant Authorities and Legislation In Mining Sector

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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”).