Overview of Mining Regime

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
Overview of Mining Regime
Chapter 1 provides an overview of Indonesias legal and regulatory regime
for mining business activities.
I. Prevailing Laws and Regulations
The more important laws and regulations currently governing Indonesian
minerals and coal mining and their related activities are as follows:
a. Law No. 4 of 2009, dated January 12, 2009, re Minerals and Coal Mining
(2009 Mining Law);
b. Minister of Energy and Mineral Resources (MoEMR) Regulation No. 18
of 2009, dated August 19, 2009, re Procedures for Amendment of
Investment in relation to Contracts of Work and Coal Contracts of Work
(MoEMRR 18/2009);
c. MoEMR Regulation No. 28 of 2009, dated September 30, 2009, re
Minerals and Coal Mining Services Business (MoEMRR 28/2009);
d. MoEMR Regulation No. 34 of 2009, dated December 31, 2009, re Pri-
oritization of Coal and Mineral Supply for Domestic Interest (MoEMR
e. Government Regulation No. 22 of 2010, dated February 1, 2010, re
Mining Area Determination (GR 22/2010);
f. Director General of Minerals and Coal (DGoMC) Regulation No. 376
of 2010, dated May 10, 2010, re Afliated Mining Services Providers
(DGoMCR 376/2010);
g. Government Regulation No. 23 of 2010, dated February 1, 2010, re
Minerals and Coal Mining Enterprise Activities (GR 23/2010);
h. Government Regulation No. 55 of 2010, dated July 5, 2010, re Direction
and Supervision of the Management and Implementation of Mining
Business (GR 55/2010);
i. MoEMR Regulation No. 17, dated September 23, 2010, re Procedures for
Minerals and Coal Benchmark Price Determination (MoEMRR 17/
j. Government Regulation No. 78 of 2010, dated December 20, 2010, re
Reclamation and Post-Mining Activities (GR 78/2010);
k. Presidential Regulation No. 26 of 2010, dated April 23, 2010, re
Extractive Industry Income Transparency (GR 26/2010);
l. MoEMR Decree No. 617 of 2011, dated March 3, 2011, re Coal Prices for
PLN Operated Power Plants (MoEMRD 617/2011);
m. DGoMC Regulation No. 999 of 2011, dated August 26, 2011, re Proce-
dures for Determining Cost Adjustments to Coal Benchmark Price
(DGoMCR 999/2011);
n. Presidential Decree No. 3 of 2012, dated January 10, 2012, re Estab-
lishment of Evaluation Team for Renegotiation of Contracts of Work and
Coal Contracts of Work (PD 3/2012);
o. MoEMR Regulation No. 7 of 2012, dated February 6, 2012, re Local
Processing and Rening of Minerals (MoEMRR 7/2012);
p. Government Regulation No. 24 of 2012, dated February 21 2012, re
Amendment of GR 23/2010 (GR 24/2012);
q. Minister of Trade (MoT) Regulation No. 29 of 2012, dated May 7,
2012, re Mining Product Export Requirements (MoTR 29/2010);
r. Minister of Finance (MoF) Regulation No. 75 of 2012, dated May 16,
2012, re Export Tax on Export Goods (MoFR 75/2012);
s. MoEMR Regulation No. 11 of 2012, dated May 16, 2012, re Amendment
of MoEMRR 7/2012 (MoEMRR 11/2012);
t. MoEMR Regulation No. 24 of 2012, dated October 8, 2012, re Amend-
ment of MoEMRR 28/2009 (MoEMRR 24/2012);
u. MoEMR Decree No. 2934 of 2012, dated October 8, 2012, re Domestic
Coal Supply Quota for 2013 (MoEMRD 2934/2012);
v. Presidential Instruction No. 3 of 2013, dated February 13, 2013, re
Acceleration of Domestic Processing and Rening (PI 3/2013); and
w. DGoMC Regulation No. 644 of 2013, dated April 23, 2013, re Amend-
ment of DGoMCR 999/2011 (DGoMCR 644/2013).
There are also a number of advanced drafts of other regulations available
which, if and when nalized and issued, will signicantly impact minerals
and coal mining activities in Indonesia. These draft regulations relate, among
other topics, to (i) coal upgrading (ii) the procedures for issuing new mining
licenses, (iii) procurement of goods and services, and (iv) community
development and empowerment.
Each of the above referenced laws and regulations (including some of
the draft regulations but excluding MoEMRD 617/2011, DGoMCR 999/2011,
MoEMRR 11/2012, DGoMCD 644/2013 and DGoMCR 614/2013) is the subject
2Mining Law & Regulatory Practice in Indonesia

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