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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, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
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Showing 31 to 35 news of total 6871 |
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- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- GVK Power & Infra Limited - India
- Essar Steel Hazira Ltd - India
- Orica Australia Pty. Ltd.
- Maheswari Brothers Coal Limited - India
- Parliament of New Zealand
- Sojitz Corporation - Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Anglo American - United Kingdom
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- PNOC Exploration Corporation - Philippines
- CNBM International Corporation - China
- Parry Sugars Refinery, India
- Bukit Baiduri Energy - Indonesia
- Ministry of Transport, Egypt
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Intertek Mineral Services - Indonesia
- London Commodity Brokers - England
- Savvy Resources Ltd - HongKong
- Thiess Contractors Indonesia
- Ambuja Cements Ltd - India
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- Siam City Cement PLC, Thailand
- ASAPP Information Group - India
- Coal and Oil Company - UAE
- Cigading International Bulk Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Merrill Lynch Commodities Europe
- Directorate General of MIneral and Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- MS Steel International - UAE
- European Bulk Services B.V. - Netherlands
- Port Waratah Coal Services - Australia
- Bulk Trading Sa - Switzerland
- Karaikal Port Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Tamil Nadu electricity Board
- Planning Commission, India
- Ministry of Mines - Canada
- Chettinad Cement Corporation Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Indonesian Coal Mining Association
- Jorong Barutama Greston.PT - Indonesia
- Cement Manufacturers Association - India
- Banpu Public Company Limited - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- McConnell Dowell - Australia
- Mercuria Energy - Indonesia
- Trasteel International SA, Italy
- Renaissance Capital - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ceylon Electricity Board - Sri Lanka
- Lanco Infratech Ltd - India
- Rio Tinto Coal - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
- Semirara Mining Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Ind-Barath Power Infra Limited - India
- Electricity Generating Authority of Thailand
- Kideco Jaya Agung - Indonesia
- New Zealand Coal & Carbon
- Metalloyd Limited - United Kingdom
- South Luzon Thermal Energy Corporation
- Wilmar Investment Holdings
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Gujarat Sidhee Cement - India
- VISA Power Limited - India
- Indian Oil Corporation Limited
- Global Business Power Corporation, Philippines
- Deloitte Consulting - India
- Petron Corporation, Philippines
- Kumho Petrochemical, South Korea
- Alfred C Toepfer International GmbH - Germany
- Indika Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Riau Bara Harum - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Billiton Holdings Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Indian Energy Exchange, India
- Videocon Industries ltd - India
- Medco Energi Mining Internasional
- Asmin Koalindo Tuhup - Indonesia
- Romanian Commodities Exchange
- Bhatia International Limited - India
- Interocean Group of Companies - India
- Madhucon Powers Ltd - India
- The State Trading Corporation of India Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Heidelberg Cement - Germany
- Manunggal Multi Energi - Indonesia
- Australian Commodity Traders Exchange
- Star Paper Mills Limited - India
- Electricity Authority, New Zealand
- Kartika Selabumi Mining - Indonesia
- Standard Chartered Bank - UAE
- Kalimantan Lumbung Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Central Java Power - Indonesia
- Independent Power Producers Association of India
- Marubeni Corporation - India
- Siam City Cement - Thailand
- Australian Coal Association
- Goldman Sachs - Singapore
- Pendopo Energi Batubara - Indonesia
- Oldendorff Carriers - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Vizag Seaport Private Limited - India
- Coastal Gujarat Power Limited - India
- The University of Queensland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Meralco Power Generation, Philippines
- Edison Trading Spa - Italy
- Georgia Ports Authority, United States
- Gujarat Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Africa Commodities Group - South Africa
- GN Power Mariveles Coal Plant, Philippines
- Baramulti Group, Indonesia
- Globalindo Alam Lestari - Indonesia
- Wood Mackenzie - Singapore
- Power Finance Corporation Ltd., India
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Eastern Energy - Thailand
- SN Aboitiz Power Inc, Philippines
- Thai Mozambique Logistica
- Sical Logistics Limited - India
- Carbofer General Trading SA - India
- Mercator Lines Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Bukit Asam (Persero) Tbk - Indonesia
- Bhushan Steel Limited - India
- Makarim & Taira - Indonesia
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indogreen Group - Indonesia
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Toyota Tsusho Corporation, Japan
- GMR Energy Limited - India
- Formosa Plastics Group - Taiwan
- Simpson Spence & Young - Indonesia
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- Aditya Birla Group - India
- Agrawal Coal Company - India
- The Treasury - Australian Government
- Central Electricity Authority - India
- Energy Link Ltd, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Global Coal Blending Company Limited - Australia
- PetroVietnam Power Coal Import and Supply Company
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bangladesh Power Developement Board
- Borneo Indobara - Indonesia
- Mjunction Services Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Economic Council, Georgia
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- Grasim Industreis Ltd - India
- ICICI Bank Limited - India
- Chamber of Mines of South Africa
- Sakthi Sugars Limited - India
- Singapore Mercantile Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Latin American Coal - Colombia
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Coal Council - USA
- Straits Asia Resources Limited - Singapore
- Larsen & Toubro Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Samtan Co., Ltd - South Korea
- LBH Netherlands Bv - Netherlands
- Jindal Steel & Power Ltd - India
- Miang Besar Coal Terminal - Indonesia
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- Posco Energy - South Korea
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