Mining Services Regulation

AuthorWilliam A. Sullivan/Christian Teo Purwono & Partners
ProfessionLicensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
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
2.1 Mining 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 classied 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.
2.4 Preference 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 holders 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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