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Indonesia Amends Mining Law to Encourage Investments

Coal News - Published on Mon, 27 Jul 2020

Image Source: Indonesia Coal
In May 2020, Indonesia’s government made significant changes to the 2009 Mining Law through the issuance of Law no 3 of 2020 (Mining Law Revision), which aims to encourage more investment into the country’s downstream mining industry. A major portion of the amendments relates to mining permits and their rights and obligations. Several new licenses have been introduced, such as rock mining certificates and assignment licenses, the latter can be used to explore radioactive materials.

Another important amendment is the government guarantee for the extension of Contract of Work and Coal Contract of Work permit holders in the form of an Operation Continuation IUPK license. This will enable businesses holding these two licenses to continue their operations for effectively a further 20 years.

A key reform in the Mining Law Revision is the removal of the authority of regional governments to issue all types of mining licenses. This now falls solely under the authority of the central government. The amendment is part of the government’s efforts to seek improvement in the country’s ease of doing business standings by centralizing the licensing functions of major sectors of the economy.

The newly revised Law, however, does allow the central government to delegate authority to regional governments for the issuance of local community-based mining licenses.

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Posted By : Yogender Pancholi on Mon, 27 Jul 2020
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