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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, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
Coal prices inched up in May (m/m) following an 8 percent decline in 2024Q1. The Australian and South African benchmarks have plummeted more ...
Friday, 26 July 24
FUELEU MARITME IS COMING. IS YOUR CHARTERPARTY READY? - GARD
With less than six months to implementation of FuelEU Maritime in EU and EEA trades, there has been little published advice regarding how to alloca ...
Thursday, 04 July 24
INDIA'S COAL PRODUCTION RISES 14% IN JUNE - PTI
The country’s coal production rose by 14.49% to 84.63 million tonne (MT) in June. The country’s coal output was 73.92 MT in June last f ...
Tuesday, 02 July 24
NTPC CAPTIVE COAL OUTPUT GROWS 15% IN Q1; DESPATCH RISES 17%
State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
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- Karaikal Port Pvt Ltd - India
- Indonesian Coal Mining Association
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- Riau Bara Harum - Indonesia
- Metalloyd Limited - United Kingdom
- Economic Council, Georgia
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- Africa Commodities Group - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Singapore Mercantile Exchange
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Posco Energy - South Korea
- South Luzon Thermal Energy Corporation
- Edison Trading Spa - Italy
- Australian Coal Association
- Dalmia Cement Bharat India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Meralco Power Generation, Philippines
- The State Trading Corporation of India Ltd
- SMG Consultants - Indonesia
- Wilmar Investment Holdings
- Kartika Selabumi Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Sinarmas Energy and Mining - Indonesia
- MS Steel International - UAE
- Holcim Trading Pte Ltd - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- Borneo Indobara - Indonesia
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Heidelberg Cement - Germany
- PTC India Limited - India
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- Bangladesh Power Developement Board
- Karbindo Abesyapradhi - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Georgia Ports Authority, United States
- The University of Queensland
- Coalindo Energy - Indonesia
- Thai Mozambique Logistica
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Standard Chartered Bank - UAE
- Kapuas Tunggal Persada - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Electricity Authority, New Zealand
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Kumho Petrochemical, South Korea
- AsiaOL BioFuels Corp., Philippines
- Central Java Power - Indonesia
- Meenaskhi Energy Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Petron Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Coal and Oil Company - UAE
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- New Zealand Coal & Carbon
- Goldman Sachs - Singapore
- Chettinad Cement Corporation Ltd - India
- Sree Jayajothi Cements Limited - India
- Ambuja Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parry Sugars Refinery, India
- Intertek Mineral Services - Indonesia
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Timah Investasi Mineral - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Billiton Holdings Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- LBH Netherlands Bv - Netherlands
- Anglo American - United Kingdom
- Kideco Jaya Agung - Indonesia
- Energy Link Ltd, New Zealand
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- Globalindo Alam Lestari - Indonesia
- The Treasury - Australian Government
- Indian Energy Exchange, India
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Electricity Generating Authority of Thailand
- Vedanta Resources Plc - India
- Sakthi Sugars Limited - India
- ICICI Bank Limited - India
- Orica Australia Pty. Ltd.
- Binh Thuan Hamico - Vietnam
- Bhushan Steel Limited - India
- Romanian Commodities Exchange
- Agrawal Coal Company - India
- CNBM International Corporation - China
- Simpson Spence & Young - Indonesia
- OPG Power Generation Pvt Ltd - India
- Lanco Infratech Ltd - India
- Rio Tinto Coal - Australia
- European Bulk Services B.V. - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Renaissance Capital - South Africa
- Mercator Lines Limited - India
- Carbofer General Trading SA - India
- TeaM Sual Corporation - Philippines
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- Star Paper Mills Limited - India
- Ind-Barath Power Infra Limited - India
- VISA Power Limited - India
- Bhoruka Overseas - Indonesia
- Commonwealth Bank - Australia
- Videocon Industries ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Parliament of New Zealand
- Power Finance Corporation Ltd., India
- Mintek Dendrill Indonesia
- Malabar Cements Ltd - India
- Merrill Lynch Commodities Europe
- Mercuria Energy - Indonesia
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Independent Power Producers Association of India
- Bayan Resources Tbk. - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Toyota Tsusho Corporation, Japan
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- Leighton Contractors Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bharathi Cement Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- Eastern Coal Council - USA
- Global Green Power PLC Corporation, Philippines
- Thiess Contractors Indonesia
- Gujarat Sidhee Cement - India
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Altura Mining Limited, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- McConnell Dowell - Australia
- Kobexindo Tractors - Indoneisa
- Larsen & Toubro Limited - India
- Kepco SPC Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Global Business Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- Sical Logistics Limited - India
- Minerals Council of Australia
- Madhucon Powers Ltd - India
- International Coal Ventures Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- Siam City Cement - Thailand
- ASAPP Information Group - India
- Ministry of Mines - Canada
- Grasim Industreis Ltd - India
- Ministry of Transport, Egypt
- Sojitz Corporation - Japan
- IEA Clean Coal Centre - UK
- Aditya Birla Group - India
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Chamber of Mines of South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sindya Power Generating Company Private Ltd
- GVK Power & Infra Limited - India
- Latin American Coal - Colombia
- Essar Steel Hazira Ltd - India
- Tamil Nadu electricity Board
- Indogreen Group - Indonesia
- Indo Tambangraya Megah - Indonesia
- Global Coal Blending Company Limited - Australia
- Jindal Steel & Power Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Planning Commission, India
- Cement Manufacturers Association - India
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Iligan Light & Power Inc, Philippines
- GMR Energy Limited - India
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
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