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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, 22 March 24
INDONESIA APPROVES 922.14 MLN T COAL PRODUCTION QUOTA FOR 2024, ABOVE TARGET - REUTERS
Indonesia has approved coal production quotas totalling 922.14 million metric tons for 2024, Bambang Suswantono, a senior official at the mining mi ...
Friday, 22 March 24
CHINA COAL INDUSTRY GROUP EXPECTS OUTPUT GROWTH TO SLOW IN 2024 - REUTERS
China’s coal output is expected to increase 36 million metric tons, or 0.8%, to about 4.7 billion tonnes in 2024, a Chinese coal industry gro ...
Monday, 18 March 24
THREE KEY TAKEAWAYS FROM OUR EUROPE GAS MARKETS SHORT-TERM OUTLOOK Q1 2024 - WOOD MACKENZIE
European gas prices are currently back to pre-crisis levels, but with a complex series of factors affecting future supply and demand, are they set ...
Wednesday, 06 March 24
INDONESIA AIMS TO FINISH MINING OUTPUT QUOTAS APPROVAL BY END-MARCH, OFFICIAL SAYS - REUTERS
Indonesia’s has approved the mining production quotarequests from more than 120mineral companies and aims to complete the approval process th ...
Monday, 04 March 24
IS YOUR GUARANTEE A GUARANTEE? NOTE TO SHIPOWNERS - GARD
KNOWLEDGE TO ELEVATE
The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the dif ...
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Showing 26 to 30 news of total 6871 |
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- Ceylon Electricity Board - Sri Lanka
- Orica Mining Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- Formosa Plastics Group - Taiwan
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- Sinarmas Energy and Mining - Indonesia
- CIMB Investment Bank - Malaysia
- ICICI Bank Limited - India
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Latin American Coal - Colombia
- Price Waterhouse Coopers - Russia
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- White Energy Company Limited
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Carbofer General Trading SA - India
- Goldman Sachs - Singapore
- Indogreen Group - Indonesia
- Manunggal Multi Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Romanian Commodities Exchange
- Agrawal Coal Company - India
- ASAPP Information Group - India
- Timah Investasi Mineral - Indoneisa
- Wilmar Investment Holdings
- Thai Mozambique Logistica
- Vizag Seaport Private Limited - India
- Simpson Spence & Young - Indonesia
- Energy Link Ltd, New Zealand
- Electricity Generating Authority of Thailand
- Port Waratah Coal Services - Australia
- Binh Thuan Hamico - Vietnam
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Global Business Power Corporation, Philippines
- Star Paper Mills Limited - India
- Bukit Makmur.PT - Indonesia
- Xindia Steels Limited - India
- MS Steel International - UAE
- Eastern Energy - Thailand
- Bhatia International Limited - India
- Coalindo Energy - Indonesia
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- Cement Manufacturers Association - India
- Maheswari Brothers Coal Limited - India
- Holcim Trading Pte Ltd - Singapore
- Rio Tinto Coal - Australia
- Electricity Authority, New Zealand
- Interocean Group of Companies - India
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement PLC, Thailand
- Directorate Of Revenue Intelligence - India
- Karaikal Port Pvt Ltd - India
- CNBM International Corporation - China
- Pipit Mutiara Jaya. PT, Indonesia
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Heidelberg Cement - Germany
- Asmin Koalindo Tuhup - Indonesia
- Central Electricity Authority - India
- Bayan Resources Tbk. - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Kapuas Tunggal Persada - Indonesia
- Coastal Gujarat Power Limited - India
- Aditya Birla Group - India
- Commonwealth Bank - Australia
- Sojitz Corporation - Japan
- Planning Commission, India
- Gujarat Electricity Regulatory Commission - India
- San Jose City I Power Corp, Philippines
- Thiess Contractors Indonesia
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- The University of Queensland
- Anglo American - United Kingdom
- Indo Tambangraya Megah - Indonesia
- Intertek Mineral Services - Indonesia
- Mercator Lines Limited - India
- Sree Jayajothi Cements Limited - India
- Global Green Power PLC Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Trasteel International SA, Italy
- Indonesian Coal Mining Association
- Renaissance Capital - South Africa
- Sarangani Energy Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Directorate General of MIneral and Coal - Indonesia
- GMR Energy Limited - India
- Economic Council, Georgia
- Bukit Asam (Persero) Tbk - Indonesia
- Bhushan Steel Limited - India
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jaiprakash Power Ventures ltd
- Eastern Coal Council - USA
- Bukit Baiduri Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Marubeni Corporation - India
- Bangladesh Power Developement Board
- Alfred C Toepfer International GmbH - Germany
- Indian Energy Exchange, India
- Iligan Light & Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Transport, Egypt
- Merrill Lynch Commodities Europe
- Energy Development Corp, Philippines
- The State Trading Corporation of India Ltd
- Dalmia Cement Bharat India
- Parry Sugars Refinery, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Malabar Cements Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Global Coal Blending Company Limited - Australia
- PNOC Exploration Corporation - Philippines
- Larsen & Toubro Limited - India
- Africa Commodities Group - South Africa
- Videocon Industries ltd - India
- Central Java Power - Indonesia
- Parliament of New Zealand
- Semirara Mining Corp, Philippines
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- Vedanta Resources Plc - India
- Meenaskhi Energy Private Limited - India
- PowerSource Philippines DevCo
- Makarim & Taira - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Sical Logistics Limited - India
- Australian Coal Association
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- Barasentosa Lestari - Indonesia
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Georgia Ports Authority, United States
- Orica Australia Pty. Ltd.
- Australian Commodity Traders Exchange
- Jorong Barutama Greston.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- SMC Global Power, Philippines
- Siam City Cement - Thailand
- Kalimantan Lumbung Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- Sindya Power Generating Company Private Ltd
- Straits Asia Resources Limited - Singapore
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Bharathi Cement Corporation - India
- Therma Luzon, Inc, Philippines
- Lanco Infratech Ltd - India
- PTC India Limited - India
- Samtan Co., Ltd - South Korea
- Mintek Dendrill Indonesia
- Sakthi Sugars Limited - India
- McConnell Dowell - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Mineral Development Corp Ltd - India
- Kartika Selabumi Mining - Indonesia
- Ambuja Cements Ltd - India
- Tata Chemicals Ltd - India
- Bhoruka Overseas - Indonesia
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- Independent Power Producers Association of India
- TeaM Sual Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Minerals Council of Australia
- IHS Mccloskey Coal Group - USA
- SN Aboitiz Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Petron Corporation, Philippines
- Tamil Nadu electricity Board
- Coal and Oil Company - UAE
- Ind-Barath Power Infra Limited - India
- Indika Energy - Indonesia
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Attock Cement Pakistan Limited
- Chettinad Cement Corporation Ltd - India
- Madhucon Powers Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Globalindo Alam Lestari - Indonesia
- India Bulls Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Mercuria Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Deloitte Consulting - India
- Borneo Indobara - Indonesia
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