Mining Services Regulation

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 53-63

CHAPTER 4

Mining Services Regulation

I.Executive Summary

1. Overview

1.1 The Mining Services Regulation (hereinafter referred to as “GR 28/

2009”) was issued with legal effect from September 30, 2009, and by

way of the implementation of Article 127 of the 2009 Mining Law.

1.2 GR 28/2009 has now been amended by MoEMR 24/2012. See

Chapter 19 for details of MoEMR 24/2012.

2. Approach

2.1Mining Services Providers: Pursuant to GR 28/2009, a Mining

Services Provider may be (i) a Business Entity, (ii) a cooperative, or

(iii) an individual.

2.2 With regard to the relevant operational area, Mining Services Pro-

viders are to be classified as (i) Local Mining Services Providers,

(ii) National Mining Services Providers, or (iii) Other Mining Services

Providers (i.e., PMA Companies).

2.3 Any cooperation between an IUP/IUPK holder and a Mining Ser-

vices Provider must be made in the form of a contract.

2.4Preference for Local Mining Services Providers: IUP/IUPK

holders are meant to give preference to Local Mining Services Pro-

viders and National Mining Services Providers.

2.5 An IUP/IUPK holder may only engage an Other Mining Services

Provider following (i) the obtaining of approval from the Relevant

Government Authority of the IUP/IUPK holder’s Business Activity

Plan and (ii) the making of an announcement by the IUP/IUPK

holder, in a local and/or national newspaper, that there is no Local

Mining Services Provider or National Holders Mining Services Pro-

vider available to carry out the required work.

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