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Wednesday, 12 August 15
REGULATION CURBS POWER OF LOCAL AUTHORITIES IN MINING SECTOR IN INDONESIA - FLORENCE G. SANTOSO
 The Indonesian Government appears to be getting serious about stripping Regents of the authority to issue mining licenses. The Government took the first steps in this direction with Minister of Energy and Mineral Resources (MEMR) Regulation No. 27 of 2013 dated September 13, 2013 regarding Procedures for the Divestment of Shares and Changes to Capital Investment in the Mineral and Coal Mining Sectors. That Regulation ordered all Regents and Governors to submit to the MEMR all mining licenses (IUPs) issued for foreign capital (PMA) companies so the IUPs could be re-issued by the MEMR. This process was to be completed before September 13, 2014, but it seems that not all Regents and Governors complied.
With the issuance of the Regional Governance Law (Law No. 23 of 2014) on October 2, 2014, it was made clearer that Regents no longer have authority to issue IUPs. Rather, the sole authority to issue IUPs for mining companies having a mining area located in just one province was vested to Governors, while the MEMR has the authority to issue licenses for mining companies having a mining area located in more than one province and for PMA mining companies.
In support of the Regional Governance Law, the Government issued Government Regulation No. 77 of 2014 (GR 77/2014) dated October 14, 2014 regarding the Third Amendment of Government Regulation No. 23 of 2010 regarding the Implementation of Mineral and Coal Mining Business. GR 77/2014 reaffirmed the requirement under MEMR 27/2013 that the MEMR reissue any IUPs previously issued by Governors and Regents to PMA mining companies. A new deadline of October 14, 2015 was set for the reissuance of the IUPs. This was reasserted in Directorate General of Minerals and Coal Circular Letter No. 01.E/30/DJB/2015 dated April 7, 2015 regarding the Change of Status of Mining Business License in the Framework of Domestic Capital Becoming Foreign Capital.
Since the issuance of the Regional Governance Law, the MEMR has issued a number of regulations curbing the authority of Regents in the mining sector. On March 4, 2015, MEMR Regulation No. 8 of 2015 was issued to amend MEMR Regulation No. 1 of 2014 regarding Increasing the Added Value of Minerals through Domestic Processing and Refining. One of the main changes under MEMR Reg No. 8 of 2015 was the revocation of the authority of Regents to issue smelter licenses (Mining Business License for Processing and Refining, or IUPOKPP) and giving that authority to Governors. Any future smelter licenses will have to be issued by the relevant Governor, though it is unclear whether smelter licenses issued by Regents prior to this Regulation would have to be reissued by Governors and whether the annual work plans and budgets of such smelter companies must be submitted to and approved by the relevant Governor or the Regent.
Despite the above rules and regulations, Regents’ authority to issue IUPs remains unchanged under the 2009 Mining Law. So, there is a conflict between the Mining Law and the Regional Governance Law. While it remains to be seen how this conflict will be resolved there is talk that the 2009 Mining Law will be amended to revoke the authority of Regents to issue IUPs.
By Florence Gracia Santoso
SSEK Indonesian Legal Consultants
About Florence Gracia Santoso
Florence is experienced in energy, infrastructure, investment and mergers and acquisitions, and has been involved in a number of acquisitions involving industrial and trading companies.
Since joining SSEK Legal Consultants in 2010, Florence Gracia Santoso has been involved in numerous major mining transactions.
This article is intended for informational purposes only and does not constitute legal advice. This article should not be acted upon in any specific situation without appropriate legal advice.
If you believe an article violates your rights or the rights of others, please contact us.
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Friday, 06 September 24
REBOUND IN OIL DEMAND COULD LIFT MARKET IN LATTER HALF OF 2024 - BIMCO
Supply/demand
Based on a strong second half demand, the supply/balance is forecast to strengthen in 2024 but weaken slightly in 2025 as n ...
Friday, 06 September 24
GLOBAL SEABORNE LNG TRADE HAS CONTINUED TO INCREASE LAST YEAR - BANCHERO COSTA
Global seaborne LNG trade has continued to increase last year, helped also by the events in Ukraine which forced Europe to diversify away from Russ ...
Wednesday, 28 August 24
SEABORNE COAL IMPORTS INTO INDIA INCREASED BY +9.9% Y-O-Y TO 146.6 MLN T - BANCHERO COSTA
Global coal trade has really picked up pace over the past year, and is now fully back to pre-Covid levels said Banchero Costa Research in its lates ...
Tuesday, 06 August 24
EXERCISE CAUTION WITH AMMONIA SWITCH - BALTIC EXCHANGE
A new study from the Massachusetts Institute of Technology (MIT) has thrown a spanner into the plan to transition ships from diesel fuel to ammonia ...
Friday, 02 August 24
ENERGY MARKET DEVELOPMENTS: COAL AND NATURAL GAS PRICES REACH RECORD HIGHS - WORLD BANK
The recent surge in natural gas and coal prices has been so swift that the main benchmarks were roughly three times higher in 2022Q2 compared to a ...
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- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Mercator Lines Limited - India
- Aditya Birla Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Barasentosa Lestari - Indonesia
- Thai Mozambique Logistica
- Larsen & Toubro Limited - India
- Banpu Public Company Limited - Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- Intertek Mineral Services - Indonesia
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- SN Aboitiz Power Inc, Philippines
- Deloitte Consulting - India
- Mjunction Services Limited - India
- Carbofer General Trading SA - India
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- Altura Mining Limited, Indonesia
- Orica Australia Pty. Ltd.
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- Commonwealth Bank - Australia
- Electricity Authority, New Zealand
- Indian Oil Corporation Limited
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- European Bulk Services B.V. - Netherlands
- Economic Council, Georgia
- Energy Development Corp, Philippines
- Gujarat Electricity Regulatory Commission - India
- Billiton Holdings Pty Ltd - Australia
- Asmin Koalindo Tuhup - Indonesia
- PowerSource Philippines DevCo
- Petron Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Siam City Cement PLC, Thailand
- Neyveli Lignite Corporation Ltd, - India
- Star Paper Mills Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- SMC Global Power, Philippines
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- Parliament of New Zealand
- Malabar Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Madhucon Powers Ltd - India
- Chettinad Cement Corporation Ltd - India
- The Treasury - Australian Government
- Semirara Mining and Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Power Finance Corporation Ltd., India
- Grasim Industreis Ltd - India
- Singapore Mercantile Exchange
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Price Waterhouse Coopers - Russia
- Kepco SPC Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Goldman Sachs - Singapore
- White Energy Company Limited
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- Indogreen Group - Indonesia
- Oldendorff Carriers - Singapore
- Timah Investasi Mineral - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- PNOC Exploration Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Gujarat Mineral Development Corp Ltd - India
- Australian Commodity Traders Exchange
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Global Business Power Corporation, Philippines
- Georgia Ports Authority, United States
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- GVK Power & Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Rio Tinto Coal - Australia
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Borneo Indobara - Indonesia
- Parry Sugars Refinery, India
- Cement Manufacturers Association - India
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Antam Resourcindo - Indonesia
- The State Trading Corporation of India Ltd
- PTC India Limited - India
- IEA Clean Coal Centre - UK
- Global Green Power PLC Corporation, Philippines
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Renaissance Capital - South Africa
- Heidelberg Cement - Germany
- The University of Queensland
- South Luzon Thermal Energy Corporation
- Ambuja Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- Lanco Infratech Ltd - India
- LBH Netherlands Bv - Netherlands
- TeaM Sual Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Chamber of Mines of South Africa
- Maharashtra Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Tata Chemicals Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Medco Energi Mining Internasional
- Indo Tambangraya Megah - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bukit Makmur.PT - Indonesia
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Electricity Generating Authority of Thailand
- New Zealand Coal & Carbon
- Indika Energy - Indonesia
- Sakthi Sugars Limited - India
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coal and Oil Company - UAE
- Siam City Cement - Thailand
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Krishnapatnam Port Company Ltd. - India
- Leighton Contractors Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Australian Coal Association
- Petrochimia International Co. Ltd.- Taiwan
- Central Electricity Authority - India
- Sojitz Corporation - Japan
- Kalimantan Lumbung Energi - Indonesia
- Merrill Lynch Commodities Europe
- Maheswari Brothers Coal Limited - India
- Marubeni Corporation - India
- Indian Energy Exchange, India
- Therma Luzon, Inc, Philippines
- Thiess Contractors Indonesia
- Vizag Seaport Private Limited - India
- Ind-Barath Power Infra Limited - India
- Ministry of Transport, Egypt
- Trasteel International SA, Italy
- Globalindo Alam Lestari - Indonesia
- India Bulls Power Limited - India
- London Commodity Brokers - England
- ICICI Bank Limited - India
- Energy Link Ltd, New Zealand
- Attock Cement Pakistan Limited
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Uttam Galva Steels Limited - India
- Essar Steel Hazira Ltd - India
- Meralco Power Generation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Romanian Commodities Exchange
- Xindia Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- OPG Power Generation Pvt Ltd - India
- Baramulti Group, Indonesia
- Minerals Council of Australia
- Indonesian Coal Mining Association
- CNBM International Corporation - China
- PetroVietnam Power Coal Import and Supply Company
- Sical Logistics Limited - India
- Agrawal Coal Company - India
- Coalindo Energy - Indonesia
- Vedanta Resources Plc - India
- Jaiprakash Power Ventures ltd
- Standard Chartered Bank - UAE
- VISA Power Limited - India
- Ministry of Finance - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Videocon Industries ltd - India
- Ministry of Mines - Canada
- SMG Consultants - Indonesia
- Bukit Baiduri Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Wilmar Investment Holdings
- Meenaskhi Energy Private Limited - India
- Sree Jayajothi Cements Limited - India
- Manunggal Multi Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- ASAPP Information Group - India
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Kobexindo Tractors - Indoneisa
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