1A
MINERAL AND COAL MINING
(law NQ.4/2009 dated January 12, 2009)
BY THE GRACE OFGOD ALMIGHTY
THEPRESIDENT OF REPUBUC OF INDONESIA
In view of :
Article 5 paragraph (1), Article 20 and Artide 33
paragraph (2) and paragraph (3) of the 1945 Constitution of
Considering :
the Republic ci Indonesia {BN No. 7:1.52pages:l4A.23Aj,
a. that mineral and coal in the mining jurisdiction of
Indonesia which constitute non-renewable natural
By the joint approval of
resources are endowed by God Almighty and play
THE HOUSE OF REPRESENTATIVES OFTI-fE REPUBUCOF
an important role in fulfilling the needs of people
INDONESIA
at large and therefore, the management of min-
and
~ral
and coal must bE." controlled by thE." !)ovE."rn-
1l-IEPRFSIDENT OF RFPtlBliC n~ INDONESIA,
ment to give real added value to the national
DECIDES:
economy in pursuit of people's welfare and prospenry In a Just manner;
b. that mineral and coal mining businesses which
TO stipulate:
LAW ON MINERAL AND COAL MINING.
constitute mining businessesoutside geothermal,
oil and gas as well as ground water play an im-
Q-lAPTERI
portant role in giving real added value to the na-
GENERALPROVI~ONS
tional economic growth and sustainable regional
ArticlE:> 1
development;
Referred to in this Law as :
c. that in consideration of national and international de-
1. Mining is part or whole phases of activities carried out
velopments ldvv Nu. 11/1967 Ull the Prilldpl~ uf Min-
within the (reline lJf mineral dnd LOaI research, man-
ing is no longer relevant and therefore, amendment to
agement andexploitation covering general inspection,
the law and regulation on mineral and coal miningca-
exploration, feasibility study, construction, mining, pro-
pable of creating businesses to manage and exploit
cessing and purification, transportation andsales, as
mineral and coal potentials in a selt-rellant, reliable,
well as post-mining activities.
transparent. effective, efficient and envronrnent-ort-
2. Minerai is a natural'v-formed inorganic compound
ented way is needed to ensure sustainable national
which hascertain physical and chemical characteris-
development;
ticsas weH as regUlar or mixedaystal structure which
d. that based 011 the considerations as referred to in let-
ters a, band c, it is necessary to enact Lawon Mineral
and Coal Mining;
Business News mO/2-6-2009
forms rock, either in seperete or integrated form,
3. Coal is a naturally-formedcarbon organic compound
sediment from residue of plants.
4. Mineral
2A
4. Mineral mining is the mining of mineral groups in the
15. Exploration is a phase of mining activitiesto get de-
fonn of are or rockoutsidegeothermal, oil and gasas
tailed and accurate informationon the location, form,
well as ground water.
dimensiun, spread, 4UCllity and measurable resources
5. Coal mining isthemining ofcarbon sediment found inside
the earth, including solid bitumen, peatandasphalt rock.
of mineralas well as information on the social condition andthe environment.
6. Mining business is a mineral or coal exploitation busi-
16. Feasibility study is a phase of mining business activi-
ness covering phases of activities in general inspec-
ties to get detailed information on all related aspects
tion, exploration, fp;:l.c;ihility study, rrmstructlon, min-
to determinethe economic and technical feasibilityof
ing, processing and purification, transportation and
a mining business, including environmental impact
sales as well as post-rnlnlnq,
analysis as well as post-mining planning.
7. Mining business permit, neremerter referred to as IUP,
isa permit to carry on a mining business.
8. IUPfor exploration isa business permit issued to carry
out phases of activities in general inspection, exploration andfeasibility study.
9. IUPfor operational production is a business pennit issued after thecompletion of IUPfor exploration to carry
out phases of operational production.
10. Srrrdlllrvlder mining pel'mit, hereinefter referred to as
IPR, is a permit to carry on a mining business in the
smallholder mining areawith limited areaand invest-
ment.
n. Special mining
17. Operational production is phases of mining business
activities covering construction, mining, processing, pu-
rification, including transportation and sales, as well
os environmental impact conb"olling fadlltles based on
the results of a feasibilitystudy.
18. Construction IS a miningbusiness activityto construct
all production operation fadlities, inclUding enVironmental impactcontrolling facilities.
19. Mining is part of a mining business activity to produce
minerals and/or coaland by-productminerals.
20. Processing and purification isa miningbusiness activity to increase the quality of minerals and/or coal as
well as to benefit from and get by-productminerals.
business permit, hereinafter re-
ferred to as IUPK, is a business permit to carry
on a mining business in the special mining business area.
12. IUPI< for exploration is iJ business permit issued to curry
21. Transportation is a miningbusiness activityto remove
minerals and/or coal from a mining area and/or pro-
cessing and purification place to a place of delivery.
22. Sales is a mining business activityto sellthe results of
minerai andcoal mining.
out phases of activities in general inspection, explora-
23. COrporate body isanylegal entitywhich isengaged in the
tionandfeasibility studyin the special mining business
mining field, established under the Indonesian lawand do-
area.
midled in the territory of the Unitary Republic ofIndonesia.
13. IUPK for operational production is a business permit
issued after the completion of TUPK for exploration to
carryout phases of operational production in the special mining business area.
24. Mining service is supporting service related to a mining business activity.
25. Environmental impactanalysis, hereinafter referred to
as Amdal, is a study conducted on the large and sig-
14. General inspection is a phase of "mining activities to
nificant impact of a planned business and/or "rtivity
knowthe regional geological condition and indication
onthe environment, needed for the process of making
of mineralization.
a decision on the execution of business and/oractivity.
Business News 7770/2-fr2009
26. Reclamation •••..
3A
26. Reclamation Isanactivitycarried out duringthe whole
who holds the powerof the Government of the Repub-
phases of mining business to arrange, restore and
lic of Indonesia as meant in the 1945 Constitution of
improve the qualityof the environment and ecosystem
the Republic of Indonesia.
to enable them to fundion again according to their
appropnauon,
37. Regional government is a governor, regent or mayor
and regional apparatuses asan element of the organi-
27. Post-mining activity; hereinafter referred to as postmining, is a planned, systematic
, and continued
activity carried out afterthe completion r:J partor whole
zation of regional government.
38. Minister is the ministerwho carriesout stateaffairs in
the field of mineraland coal mining.
of mining business activity to restore environmental
and social functions according
to the local conditions
Q-1APTERn
PRINOPlES AND OBJECTIVES
in the entire miningarea.
28. Empowennent of the community is an effort to im-
prove the capacity of the community, either individually or collectively, to improvetheir IMng standards.
Article 2
Mineral and/or coal mining shall be managed under the prindples as follows:
29. Mining area,hereinafterreferred to as WP, is an area
a. benefll:, justice, and balance:
which hasmineral and/or coal potentials, is not bound
b. sidingwith nationalinterests;
to the definition of governmentadministration and is
c. partidpatlve, transparent, and accountable;
pelt of the national spatial layout.
d. sustainable and environment-oriented.
30. Mining business area, hereinafter referred to as WUp,
is part of WP which hasdata, potentialsand/or geological infonnation.
31. Mining business permit area, hereinafter referred to
as WIUP, is an area granted to an IUP holder.
Article 3
In support of sustainable national development, the management of mineral and coal shall be
aimed at:
a. ensuring the realization and control of mining business
32. Smallholder mining area, hereinafter referred to as
actMties in an effective, efficientandcompetitive way;
WPR, is part of WP where a smallholder mining busi-
b. ensuring the benefit of mineral and coal mining in a
ness activity is carriedout.
sustainable and environment-oriented way;
33. Statereserve area, hereinafterreferred to as WPN, is
c. ensuring theavailability of mineral andcoal asrawmate-
part of WP reserved in the interest of national strat-
rials and/orenergy sources to meet the domestic needs;
egy.
34. Special mining business area, hereinafter referred to
WUPK, is part of WPN which cal I be exploited.
d. supporting and developing nationalcapacity to enable
the nationto compete with other countries at national,
r~iunal
and
ill~rndUullallevels;
35.Special minIng business permitarea in WUPK, herein-
e. improving the incomeof the local community, the re-
after referred to as WIUPK, is an area granted to an
gionand the countryand creating job opportunities for
IUPK holder.
the greatest benefit of the people's welfare; and
36. Central government, hereinafter referred to asthe Government, is the President of the RepubJk of Indonesia
Business News 7770/2-6-2009
f. ensuring legalcertaintyabout mineral and coal mining
btJ~jneo5" ~rtivitil?$_
CHAPTER III .....
4A
Q-lAPTERlli
THE CONTROL OF MINERAL AND COAL
Article 4
b. enacting lawand regulation;
c. setting national standards, gUides andcriteria;
d. setting a system of licensing national mineral and
(1) Mineral andcoal as non-renewable naturalresources
constitute national wealth controlled by the state for
coal mining;
e. setting WP aftercoordinating with regional govern-
the greatest benefitof the people's welfare.
ments andconsulting the House of Representatives
(2) The control of mineral and coal by the state as reterrell lu ill pdrdyrdph (1) :;hclll be realiLed by the Gov-
of the Republic of Indonesia;
f. issuing LUI"} nurturing, settling public conflicts and
ernment and/orregional governments.
controlling mining businesses located in morethan
1 (one) provinces and/or waters more than 12
(twelve) milesfrom the coastlinei
Artide 5
(1) In the national interests, the Government, after con-
g. issuing IUP, nurturing, settlingpublicconflicts, and
sulting the House of Representatives of the Republic of
controlling mining businesses located in morethan
Indonesia, can set a mineral and/or coal policy which
1 (one) provinces and/or waters more than 12
gives a priorityto the domestic interests.
(twelve) milesfrom the coastline;
(2) The natlonel interests as referred to in paraqraph (1)
h. issuing IUP, nurturlnq, settlina puhllc conflirtc:, -
can be realized throughthe control of production and
and controlling production operation mining
exports.
businesses which have a direct environmental
(3) In conducting the control as referred to in para-
impact on more than 1 (one) provinces and/or
graph (2), the Government has th~ authority to set
waters more than 12 (twelve) miles from the
the annual production of each commodity for each
coastline;
i, issuing IUPK for exploration and IUPK for opera-
province.
tionaI production;
(4) Regional governments shall complywith the Government-set production
as referred to in paragraph (3).
j.
F'V<"luating IUP for operational production issued by
(5) Further provisions onthe mineral and/coel policy Which
regional governments, which have caused environ-
gives a priority to the domestic interests asreferred to
mental damage and do not apply good mining as-
in paragraph (1) andthe control of production andex-
pects;
ports as referred to in paragraph (2) and paragraph
(3) are to be provlded for in a government regulation.
k. setting production, marketing, usage and conservation policies;
I. setting poJides oncocperatlon, partnership and emCHAPTER IV
THEAUTHORITY TO MANAGE MINERAL
AND COAL MINING
powerment of the community:
m. formulating andsettingnon-taxstate receipts from
mineral andcoalminingbusinesses;
Article 6
n. nurturing andcontrolling the management of min-
(1) The Government's authority in the management of
t::lal and cool mining by regional governmentsj
mineral and coal mining covers:
a. setting national policies;
Business News 7770/2-6-2009
o. nurturing andcontrolling the enactment of bylaws
in the miningfield;
p. making
.
p. making Inventory, inspection, and research as well
e. making inventory, inspection and research as
:asexploration to get data and information on min-
well as exploration to get data and lnformatlcn
erai andcoalasmateriaJs to makeWUP andWPNi
on mineral and coal in accordance with its au-
thority;
q. managing information on ge>Iogica! O)OCifOOns, in-
tormation on mineral andcoal resource potentials,
f. managing information on geological conditions, in-
andinformation on mining at a national level;
formation on mineral and coalresource potentials
as well as information on mining In the province;
r. nurturing andcontrolling the reclamation of post-
g. drawing up a balanre sheet of minerai and coal
mining areas;
resources in the province;
s, drawing up a balance sheet of mineral and coal
resources at a national ~;
to developing and improving the added value of miningbusiness actMties;and
u, improving the L:apaclty or apparatuses or the GOVernment, provincial governments, and regen<.y!
munidpal governments in themanagementof mining businesses.
(2.) The Government's authority as referred to Inparagraph
(1)shall be realized inaccordance with the legislation.
h.
~ping and
improving the ackkKJ value of min-
ing business activities in the province;
i. develOping and Improving a public role In mining
busmesses by observing environmental mnservalion efforts;
j. coordinating the issuance of permits and control-
\ing the useof explosives \n mmmg areas In eccer-
dance with its authority;
k. sllhmittino information on the results of inventory,
general inspection and research and exploration to
Artide 7
(1) The provincitlol government's auUloriLy In tne rnanaqe-
the Minisb:!r and regents/mayors;
I. submlUlng InformatIOn on the resultsofproductioo,
ment of mineral andcoalmining covers:
domesticsales and exports to the Minister andre-
a. enacting bylaws;
gents/mayol'$;
b. issUng !UP, nurturing, settling publicconftids and con-
troIIiIYiI mi~.~ Il:Iai8j inrrae than 1(one)
regendesfmunidpalities andlorwaters 4(four) mle;
upto 12(twelve) miles from the ooastllne;
c. issuing IUP, nurturll'lg, settlmg public conflicts and
m. nurturlng and controlling the reclamation of postmining areas; and
n. improving t:il@ capacity d apparatuses of provincial
govemmentand regency/munldpal governments in
fue ITIanagement of mining businesses.
conb\7lling producliQn operation mining busll~
(2) TIre pruviflCicj' govemmenrs aumonty as re!'e1Te(j to in
located inmore than 1 (one) regendes/munidpali-
paragraph (1) shall berealized in aocordance withthe
legislation.
tiesand/orwaters 4 (four) up to 12(twelve) miles
fromthe coastline;
d. issuing Iup,nurturing, settling public conflicts and
Artide 8
controlling mining businesses which have a direct
(1) The regency)municivalgovemment'sauthority in the
environmental impact on more than 1 (one) regen-
management of mineral and coa« mining businesses
cies/municipalities and/or the waters 4(four)miles
shall cover:
up to 12 (twelve) miles from the coastline;
e, enocting bylllWSj
Business News 7770/2-·6-2009
Lissuing .....
6A
b. issuing IUP and IPR, nurturing, settling public con-
(2) Theregency/municipal government's authorityas re-
flicts:, and controlling mining busines!»e$loc:ated In
ferred to in paragraph (I) shall be realized in accor-
the regency/municipality and/or waters up to 4 (four)
dance with the legislation.
miles from the coastline;
c. iSSUing IUP and IPR, nurturing, settling pun-
OiAPTERV
!.ic conflicts and controlling production operation mining businesses whose actiVities
MININGAPEAS
Part One
are found in the regency/municipality and/
General
or waters up to 4 (four) miles from the
Artide9
coastline;
(1) WP as part of the national spatial Iavout serves as the
d maldng inventory, Inspection and researchas well
as exploration to get data and information on min-
erai and ooal;
basis to set miningactMtles.
(2) WP as referred to in paragraph (1) shall be
set by the Government after coordinating with
e. managing infonnation on geological conditions,
the regional government
and
conSUlting the
information on mineral and coal potentials as
House of Representatives of the Republic of
wen as information on mining in the regency}
Indonesia.
munidpality;
f. drawing uP
a balance sheet of minefal and coal
Article 10
resources In theregency/municipality;
The effort to set WP as referred to in Artide 9
g. developing and empowering the local community
paragraph (2) shall be made :
in mining businesses by observing environmental
a. In a transparent, partkipative and responsible way;
conservation efforts;
b. in an (ntegrated way by observing views from rel-
h. devefoping and improving the added value and ben-
evant government agencies,and the public as well
efit cA mining business actiVities to the optimum
as by taking into account ecological,economic and
level;
socio-cultural as well as envlronment-orlented as-
t, submitting information on the results of invenlDryf
general inspectfon, and research as well as explo-
pectsi and
c. by observing regional aspirations.
ration and expJoitation to the Minister and goverArtIcle 11
1101;
j. submittinginfOrmation ontheresults of produd:ioJl,
The Government and regional governments shall
domestic sales and exports to the Minister and geN-
oondud: a mining inspection and researdl as part rJ prepa-
emor;
rations for WP.
k. nurturing and controUing the reclamatiOn of post-
Article 12
Further provisions on the border, areaand mecha-
mining areas;and
I. improving the capactty of apparatuses of the
re-
rssm to
set WP as referred to in Article 9, Artide 10 and
gency/municipal government in the management
ArtIcle 11 are to be provided for in a government regula-
of mining businesses.
tion.
Business News mO/2-fr2009
Article
13. ~ ...
7A
Article 13
WP consists of :
a.
a. geographical location;
b. conservation aspects;
c. the supporting power of environmentel protection;
WUPi
b. WPR; and
d. the optimum useof mineraland/or coal resources; and
c. WPN.
e. population density rate.
PartTw
Mining Business Areas
Article 14
(1) The effort to set WUP shall be made by the Govern-
Artide 19
FIJrther provisions on thQ procedure to set the
borderand area ofWIUPs as referred to ln Article 17 are
to be provlded for in a government regulation.
ment lifter coordinoting with the regionol government
andnotified Inwriting to the House of Representatives
PartThree
of the Republic of Indonesia.
Smallholder MiningArea
(2) Thecoordination as referredto in paragraph (1) shall
be dane with the-relevant regional government based.
on data and information owned by the Government
Article 20
Smallholder mining activities shall becarried out
in a WPR.
and the regional government.
Article 21
Article 15
The Government candelegate part of its authority
to set WUP as referred to in Article 14 paragraph (1) to the
proyindal government in accordance with the legislation.
WPR as referred to in Article 20 shall be set bythe
regent/mayor after consulting the Regional Legislative Asw
sembly of the regencyjmun.icipality concerned.
Article 22
Article 16
One WUP consists of 1 (one) or several WlUPs
located in morethan 1 (one) provinces, regencies/municipalities, and/or in 1 (one) regency/municipality.
The criteria of setting WPR are as follows:
a. holding secondary mineral deposits found in the river
and/or between the side and the riverbank;
b. holding primary metal or coal deposits at a maximum
Article 17
The area and border of WIUP for metal mineral
and coal shall be set by the Government in coordination
with the regional government based on the criteriaowned
depth of 25 (twenty-five) meters;
c. terrace eendtment, flood plaill, and ancient rivel
sendirnent;
d. the maximum area of WPR is 25 (twenty-five) hectares;
by the government.
e. mentioning the type of commodity to be mined;and/or
.~rtide
1B
The criteria of setting 1 (one) or several WIUPs
within 1 (one) WUP shall be as follows :
Business News 7770!2~6-2009
f. being an area or place of smallholder mining
activities carried out for at least 15 (fifteen)
years.
Article 23 .....
BA
Article 23
(4) The areas which are to be earmarked for the pur-
In setting WPR as referred to in Article 21, the
poses as referred to in paragraph (2) and paragraph
regent/mayor shall announce the WPR plantothe public in
(3) shallhavetheir status changed into WUPK.
a transparentway.
Artide 28
Article 24
The area or place of smallholder miningactivities
The change in the status of WPN as referredto in
Artide 27 paragraph (2), paragraph (3) andparagraph (4)
that haw'! been carried out but nave not beQn set as wPR
into WUPKcan be made bytakill9 into account:
shall receive priority in the effort to set WPR.
a. the fulfillment of domesticneedfor industrial raw materials andenergy;
Artlcle 2.5
Further provisions on the gUidance and procedure
11.
c. the regional conditions based on limitedinfrastructures
to set WPR as referred to in Article 21 and Artide 22 are to
be provided for in a governmentregulation.
the state source or run:::lgn exchange earnings;
andfacilities;
d. haVing the potential to develop intoaneconomic growth
center;
Article 26
Furtherprovisions on the criteria and mechanism
e. the supporting capacityof the environment; and/or
f.
the useof hightechnologyand huge investment.
to setWPR as referred to in Article22 and Article23 are to
be provided for in the regional regulations of the regency!
municipality.
Article 29
(1) WUPK as referred to in Article 27 paragraph (4)
PartFbur
which is to be developed shall be set by the Gov-
Stole Reserve Are.:!
ernment after coordiol:Jting with the regiona' gov-
Article 27
(1) In the interests ofthe national strategies, the Government, bythe approval of the House of Representatives
ernment.
(2) The mining business activities in WUPK as referredto
in paragraph (1) shan come in the form ofIUPK.
of the Republic of Indonesia and by observing regional
Article 30
aspirations, shall set WPN as an-area reserved for certain commodities and conservation area within the
One WUPK consists of 1 (one) or several
frame of keeping the balance of the ecosystem and
WIUPKs located in more than 1 (one) provinces, re-
environment.
gencies/municipalities and/or in 1 (one) reqencv/mu-
(2) Partof the area of WPN reserved for certaincommodi-
nicipality.
ties as referred to in paragraph (1) can be madeready
by the approval of the House of Representative:> of the
Republic of Indonesia.
Article 31
(3) The time limit to set WPN as conservation area as re-
The area and border of WIUPK for metal mineral
Ferred to in paragraph (1) can be decided by the ap-
and coal shall be set by the Government m cooromanon
proval of the House of Representatives of the Republic
with regional governments based on the criteriaand infor-
ofIndonesia.
mation owned by the Government
Business News 7770/2-6-2009
Article 32 .....
9A
Article 32
OW'TERVII
MINING BUSINESS PERMITS
Thecriteria to set 1 (one) or several WIUPKs in 1 (one)
WUPK areasfollOWS:
part One
a. geographical location;
General
b. consecvation aspects;
Artide36
c, the supporting capacity ofenvironment protection;
d. the optimum use of mineral and/or coal resources;
(1) IUPshall consist of two phases:
a. IUPfor explorat:ion covering genemI inspection, exploration andfeasibility study;
and
e. population<lensiti rate.
ArtlcIe 33
FuIther pmv1500s on the pnxedureto setthe area
and border of WIUPK as referred to in Artlde 31 and Article 32 are to be provided for in a government regulation.
b. IUPfor operational productioncovering construc-
tion, mining, processing and purification as well as
transpnrtation and SilI~.
(2) Theholder of IUPfor exploration andthe holder of IUP
for operational production can carty aut part or whole
of the activities as referred lu in pctrtlgraph (1).
aw:rrER.Vl
MINING BUSINESSES
Article 34
(1) Mining businesses shall be dassified into:
a. mlnerm mining; end
b. coal mining.
(2) The mineral mining as referred to in paragraph (1)
lettera shall beclassified into:
a. radioactive mineral mining;
b. ferrous mineral mining;
c. non-ferrous mineral mining;and
d. rock mining.
Artide37
lUP shall be issued by :
a. regent/mayor ifWIUP is located in a i'egenc.y/municipality;
b. governor jf WIUP is located in more than 1 (one) regencies/municipalities In 1 (one) province afterrecejying rAmmmendatinl1S frnm th.f> relevant regenWmay-
ors in accordance with the legislation; and
c. the Minister if WIUP is located in more than 1 (one)
provinces ,,/"ler rea::ivJllg recommendations from the
relevant governors and regents/mayors Inaccordance
with the legislation.
(3) Funher prtMsions on the cIassiflcation ofa miningcorn-
mocHty into a mineral mining group as referred to in
paragraph (2) are to be provided for Ina government
regulation.
ArtfCle38
IUP shall be issued to:
a. corporate bodies;
b. cooperatIVes; and
Artide35
c. individuals.
Themining businesses as referred to in Article 34
shall corne in the form of :
Q•
.Il.F;
Article 39
el) IUP for exploreltion es referred to in Artide 36 para-
b. IPR; and
graph (1) letter a shall at least contain the following
c. IlPK.
information:
Business News n70/2.f>-2009
a,
name, •.•••
iDA
a. name of company;
r. occupational safety andhealth;
b. location andsize of area;
s. mineral or coal conservation;
c. general spatial layout plan;
t. use of domestic good!';" services and
d. statement of readiness;
u. application of good economic andmining technical
e. investment capital;
t~hnology;
principles;
f. extended phases Of activities;
V. development of Indoneslan workers,
g. rights andobligations oflUP holder;
w. management of dataon minerai or coal; and
x. control, development and application of mineral or
h. validity period of phases of activities;
i. type of licensed business;
coal mining technology.
j. plan for the development andempowerment ofthe
community near thp mining area;
k. taxaticin;
I. settlement of conflict;
rn. regular rees andexploration fees; anti
n, amda!.
(2) IUPfor operational production asreferred to in Article
36paragraph (1) letter b shall at leastcontain the follOWing information:
Article 40
(1) IUPas referred to in Artide 36 paragraph (1) shall be
issued to 1 (one) type of mineral or mal.
(2) The holder of IU P cs referred to in pa ragraph
(1) that finds other mineral in WIUP it manages
shall receive priority to manage the other mineraI.
(3) The holder afIUP that intends to manage the other
a. nameofrompany;
mineral as referred to in paragraph (2) shall file
b. size of area;
an application for a new IUP to the Minister, gov-
c. mining site;
ernor and regent/mayor according to their respec-
d. processmq and purlflcatiun site;
tive authority.
e. transportation and sales;
(4) The holderof lUP asreferred to in paragraph (2) can
f. investment capital;
state its intention not to manage the other mineral it
g. validity period of IUP;
has found.
h. period of phases of activities;
(5) The holder of IUPthat does not intend to manage the
i- c;ettlement af land problems;
othermineral it hasfound as referred to in paragraph
j. environment including reclamation and post-mining;
(4) shall keep the othermineral sothatother party will
k. guarantee funds for reclamation and post-mining;
not benefitfrom it.
I. extension of IUPi
(6) IUP for the other mineral as referred tn in paragraph
m. rights andobligations oflUP holder;
(4) and paragraph (5) can be granted to other party
n. plan for thedevelopment and empowerment of the
by the Minister, governor andregent/mayor according
community nearthe mining area;
to theirrespective: authonty.
o, taxation;
Article 41
p. non-tax state revenues consisting of regular fees
and production fees;
q, settlement of disputes;
BusinesS NaYS 7770/2--6-2009
!Up cannot be used for purposes otherthanthose
referred to in IUP.
PartTwo .
!
••
,
itA
PartlWo
(2) IUPfor operational production can be issued to corpo-
IUP for exploration
Article 42
rate txxIies, cooperatives or individuals through the
auction of WIUP for metal mineral ,or coal if they have
(1) lUP for exploration in ferrous mineral mining can be
data on the reslJlts of a feasibility study.
issued for a mmdmurn period of 8 (eight) years.
(2) WP For expkxation In non-ferroI.ts minerai mining can
Attide47
be isSUed for a maximum periOd of 3 (three) years
(1) IUPfor operational production Inmetalmineral mining
and non-ferrous mineral of certain type for a maxi-
can be issued tor a maximum period of 20 {twenty}
mum period of 7 (seven) years.
years and can be twice extended tor 10 (ten) years
(3) lUP for exploration in fOCk miningcan be issued for a
maximum period of 3 (three) years.
@Ch.
(2) IUP for operational production in non-metal mineral
mining can be issued for a maximum period of 10 (len)
(4) IUPfor exploration In coalminingcan be issued for a
yeaI'!> and can be twice
maximum period of7 (se\I@n) yean>.
~
for
~
(fIVe) years
each.
Article 43
(3) lUP for operational production in the mining of non-
(1) In the event Of exploration and feaSibility studY. the
metal mineral Ofcertaintype can be ssuedfor a maXi-
holderof IUP for exploration that getsquarried min-
mum period 0120 (twenty) years and can be twice
eraior coalshall report them to the IUPissuer.
extended for 10 (ten) yearseach.
(2) The holder of IUP for exploration that intends to sell
(4) IUP for operational production in rock mining can be
the minerai or coal as referred to in paragraph (1)
issued for a maximum period of5 (five) years and can
shall apply fur a preliminary permit for transporbttion
be.twice e'lCte.l'\ded fur 5 (five) years each.
and sales.
(5) IUP for operational production in coal mining can
be tssued for a maximum period of 20 (twenty)
years and can be twice estendedtor 10 (ten) year~
Altide+:t
each.
The preliminary pennI as referred to in Artide 43
paragraph (2) shall be issUed by the MinISter, governor, or
regent/mayor according to theirrespective authortty.
Article48
!Up for operational production shall be Issued
Artlde45
The quarried mineral or coalas referred to in Article 43 shall be subject to production fees.
part11lree
IUP for Operational Production
bv:
a. the regent/mayor When mining site, processing and
purification site and port are located in one regency}
munidpdfilYi
b. the governorwhen mining site, processing andpurifi-
ArtX:Ie 46
cation siteand port are located in different regendes!
(1) Any holder of IUP for exploration isguaranteed to ob-
municipalities after receiving recommendations from
tainIUP for operational productiOn asthecontinuatiof'l
the relevant regents/mayors in accordance with the
of their mining bl~_
legislation;and
Business News 7770/2-6-2009
c. the .....
12A
c. the Minister when mining site, processing andpuntl-
Article 53
cationsiteand port are located in different provinces
Every holderof IUPfor operational production of
after receiving recommendations from the relevant
metal mineral shall be grantoo WIUP covering a maximum
governors and regents/mayors in accordance with the
areaof 25,000 (twenty·flVethousand) hectares.
legislation.
paragraph :3
Artide49
Non·Metal Mineral Mining
Further provisions 00 the procedures of issuing
Artide 54
IUPfor exploration "as referred to in Article 42 andIUPfor
WIUP for non-metal mineral shall be granted to
operational production as referred to in Article 46 are to
corporate bodies, cooperatives and indMduals byapplying
be provided for in a government regulation.
for areas to the issuer of permit as referred to in Article
37.
PartFour
M;rlt'ri,l Mi,uug
Artide 55
Paragraph 1
(1) Every holderof IUP for exploration of non-metal min-
Radioactive Mineral Mining
eraIshall be granted WIUP covering a minimum area
Article 50
of 500 (five hundred) hectares and a maximum area
WUP for radioactive mineral shall be set by the
Government and its realization shalf bebased on the legis·
lanon.
of 25,000 (twenty-fivethousand) hectares.
(2) In the area to which lUP for exploration of non-metal
mineral has been issued IUP can be issued to other
party to manage other mineral found in different
Paragraph 2
Metal Mineral Mining
Article 51
WIUP for metal mineralshall be issued to corpo-
ploces.
(3) IUP as referred to in paragraph (2) is issued after
taking Into account views from the first holder of
IUP.
rate bodes, cooperatives and IndMduals through auctions.
Article 52
Article 56
(1) Every holder of IUP for exploration of metal mineral
Every holderof IUPfor operational production of
shall be granted W!UP covering a minimum area of
non-mete' mineral shall be grantedWIUP covering a maxi-
5,000 (five thousond) hectares lind a maximum eree
mum orea of 5,000 (fIVethousand} hectares.
of 100,000 (one hundred thousand) hectares.
(2) In the area to which IUP for exploration of metal
Paragraph 4
minerai has been issued!Up can be issued to other
Rock Mining
party to manage other mineral found in different
Artide57
places.
(3) lUP as referred to in paragraph (2) is issued after tak·
ing into account viewsfrom the first holderof IUP.
Business News 7770/2-6·2009
WIUP for rock shall be grantedto corporate bodles, cooperatives and indiViduals by applying for areas to
the issuer of permit as referred to in Artide 37.
ArtideSB.........
13A
Article 58
(1) Every holder of !UP for exploration of rock shall be
coal shall be granted WIUPcovering a maximum areaof
15,000 (fifteen thousand) hectares.
glClllted WIUP coverinq d minimum cued of 5 (rrve)
Artide 63
hectares and a maximum area of 5,000 (five tnou-
Further provisions on the procedures of applyinJ for
sand) hectares.
(2) In the area to which IUP for exploration of rock
WIUP as referred to in Artide 51, ArtiCle 54, Artide 57 and
has been issued IUP can be issued to other party
Article-GO are to beprovided for ina government regulation.
to manage other mineral found in different
OiAPTER VIII
places.
(3) !Up as referred to in paragraph (2) can be issued
THE REQUIREMENTS OFMINING BUSINESS PERMITS
Article 64
after taking into account views from the first holder
The Government and regional governments ac-
ofIUP.
cording to their respective authority shall transparently
Alticle 59
Every holderof !UPfor operational production of
rock shall be granted WlUPcovering a maximumarea of
1,000(onethousand) hectares.
make public the plan
in WIUP as referred to in Article 16 as well as to issue !UP
for explorationand IUP for operational production as referred to In Articte 36.
PartFive
Coal Minjng
to carry out minlng business activities
Article 65
(l) COrporate bodies, cooperatives and indiViduals as re-
Article 60
ferred to in Article 51, Article 54, Article 57, andArticle
WIUP for coal shall be granted to corporate bod-
60 that are engaged in mining businesses shall meet
ies, cooperatives andindividuals though auctions.
administrative, technical, environmental andfinancial
requirements.
Article 61
(2) Further provisions nn adminio::.trativp, t~hni("i'll, envl-
(1) Every holder of !UP for exploration of coal shall be
mnmentaland finandal requirements asreferred to in
grantedWIUP covering a minimumarea of 5,000 (five
paragraph (1) are to be provided fur in agovernment
thousand) hectares and a maximum area of 50,000
reguklUull.
(fifty thousand) hectares.
(2) In the area to which IUP tor exploration of coal has
CHAPTER IX
beenissued IUP can be issued to other party to man-
SMALlHOLDER MINING PERMITS
age other mineralfound in different places.
Article 66
(3) !Up as referred to in paragraph (2) shall be issued
Smallholder miningactivitiesas referred to in Ar-
after taking into account viewsfrom the first holderof
ticle 20 shall be classified into :
IUP.
a. metal mineral mining;
b.
Article 62
Every holder of lUP for operational production of
Business News 7770/2-6-2009
nnn-metal mineral mining;
c. rockmining; and/or
d. coal mining.
Article 67.... ,
14A
Article 67
safety and health, miningandenvironmental manage-
(1) Regents/mayors shall issue IPR particularly to local
population, namely individuals, groups of individuals
ment,and meetthe existingstandards;
c. manage the environmentin cooperation with the rel-
andjor cooperatives.
(2) Regents/mayors can delegatethe granting of IPR as
referll"d to in prlragraph (1) tn <;ub-di"hirt headc; in
accordance with the legislation.
evantregional government;
d. pay regularfeesand production fees; and
P.
submit a periodic repnrt on thE.' reali:zation of small-
holderminingbusinesses to the issuer of IPR.
(3) To obtain IPRas referred to in paragraph (I), appliArticle 71
cants shell file epplicetlons to the relevant regent!
(1) In addition to the obligations as referred to in
mayor.
Article 70, the holder of IPR shall also comply
Article68
with mining technical requirements in carrying out
(1) The areaof miningfor 1 (one) IPRthat can begranted
smallholder mining activities as referred to in Ar-
to:
ticle 66.
a. an individual shall be a maximum of 1 (one) heet-
are;
(2) Further provisions on mining technical requirements
as referred to in paragraph (1) are to be provided for
b. a group of individuals shall be a maximum of 5 (five)
in a aovemm~nt regulation.
hectares; and/or
c. a cooperativeshaJI bea maximum of 10 (ten) hectarcs.
Article 72
rurther provisions on the procedures of iSSUirlY
(2) IPRshall be issued for a maximum period of 5 (fIVe)
years andcan be extended.
IPR areto be provided for in the regional regulation of the
regencylmunjdpality concerned.
Article 69
Article 73
The holder of IPRsha/l have the rightto:
(1) Regency/municipal governments shallnurture small-
a. get nurturing and controlling services in the fields
holder mining businesses in terms of management,
of occupational safety and health, the environ-
mining technology, capitaland marketing in an effort
ment mining techniaue and manaaement from
to improvetheir capabiHty.
the Government and/or regional governments;
and
(2) Regency/municipal governments shall be responsible
for technical security in smallholder mIning businesses
b. obtain capita! ussi5tance in .;lccordanee with the legis
covering:
a. occupational safetyand health;
lation.
b. environmental management; and
Article 70
The holder of IPRshall :
a. carry out mining activities noIaterthan3 (three)months
atter IPRhasbeen issued;
b. comply with the law and regulation on occupational
Business News 7770/2-6-2009
c. post-minIng.
(3) To render technical security as referred to in paragraph (2), the regency/municipal governments shall
appoint mining inspectorfunctional officials in accordance with the legislation.
(4) The
.....
154.
(4) The regency/municipal governments shall record the
(3) State-owned companies and regional government-
production of all smallholder mining businesses in their
owned companies as referred to in paragraph (2) shall
respective territoryandreportit periodically to the Min-
receive a priority in obtaining IUPK.
(4) Private companies asreferred to in paragraph (2) shall
isterandthe relevant governor.
participate in auctions ofWIUPK to get IUPK.
a-IAPTERX
Article 76
SPECIAL MINING BUSINESS PERMITS
(1) IUPK consists aftwa phases:
Arl~'eH
(1) IUPK shall be issued by the Minister by payingatten-
exploration andfeasibility study;
tion to regional interests.
(2) IUPK asreferred to in paragraph (1) shall be issued for
1 (one)type of metal mineral or coal in 1 (one)WIUPt<.
(3) The holder ofIUPKas referred to in paraqraph (1) that
finds othermineral in \VIUPK it manages shall begiven
b. lUPK tor operanonai production coveting construc-
tion, mining, processing and purification, as well
as transportation and sales.
(2) The holder of IUPK for exploration and the holder
of IUPK for operational production cancarry out part
a priority to manage it.
(4) Theholder of IUPK that intends
a. IUPK for exploration covering general inspection,
to manage other min-
eral as referred to in paragraph (2) shall apply for a
newIUPK to the Minister.
(5) TheholderofIUPKasreferred to in paragraph (2) can
or whnls nf
th~
activltles as referred to in para-
graph (1).
(3) Further provisions on the procedure of securing IUPK
as referred to In paragraph (1) are to be prOVided for
in a government regulation.
state intention not to manage the other mineral it has
found.
Article 77
(6) Theholder ofIUPKthat does not intend to manage the
other mineral it has found as referred to in paragraph
{4} shall keep the othermineral so that other partywill
not benefitfrom it..
(1) Every holder of IUPK for exploration is guaranteed to
obtain IUPK for operational production as the continuation of their mining business activities.
(2) IUPK for operational production can beissued to Indo-
(7) IUPKfor other mineral as reff'rrPd to in fl~ragrnrh (4)
nesian corporate bodies dS rererred lu in Alticle 75
andparagraph (5) can be issued to other partyby the
paragraph (3) and paragraph (4) that have data on
Minister.
the results of a feasibilitystudy.
Artide 75
(1) rUPK asreferred to in Artide 74 paragraph (1) shall be
issued an the basisof considerations as referredto in
Article 28.
(2.) lUPK as referred to in paragraph (1) canbe issued to
Article 78
IUPK for exploration as referred to in Article 76
paragraph (1) letter a shall at leastcontain:
a. name of company;
IlIwnesicm corporate bodies, namely state-owned rom-
11. slze end location of area,
panies, regional govemment-owned companies and pri-
c. general spatial layout plan;
vatecompanies.
d. statementof readiness;
Business News 7170/2-6-2009
e. investment .....
16A
e. investment capital;
f.
t
extended time of phases of activities;
g. rightsandobligations of the IUPK hokler;
h. period of time for phases ofactivities;
use ri domestic gO<Xis, services, technology, engineering anddesiqn;
u. applicatlon of good economic andtechniCal mining principles;
i.
type of business granted;
v. development of Indonesian workers;
j.
plan for the development and empowennent of tile
w. management of data on mineral and coal;
x, conb"ol, development and application of mineral orcoal
community nearthe mining area;
mining technology; and
1<.
taxation;
I.
settlement of landdispute;
y. share divestment.
m. regulat fees and explol7ltion fees; and
n. arndal,
Amcle80
Article 79
lurKfor operational production 0::; referred to in
lUPK taI\nOtbe usedfor pul1:lOSeS otherthan those
contained in IUPK.
Article76 paragraph (1) letter b shallat leastcontaln:
Article81
a. name of company;
b. size of mining area;
(1) In the event of exploration and feasibility study,
c. mining Site;
the holder of IUPK for exploration that has found
d. prOcessing and purification site;
quarried metal mineral or coal shall report it to
e.
transportation and sales;
the Minister.
f.
investment capital;
(2) The holderofIUPK for exploration that intends to sell
g. period of time of phases of activities,
metal mineral or coal as referred to in paragraph (1)
h. settlement of [and problems;
shall applyfor a preliminary pennit for transportation
i.
andsales.
environmental management, including reclamation and
post-mining;
j.
funds for guaranteed reclamation and post-rnlnlnq:
k. validityperiodofIUPKj
1. extension oflUPK;
m. rights and obligations;
n, development and empowerment of the community near
(3) Thepreliminary pennit as referredto in paragraph (2)
shall be issued by the Minister.
Artide82
The quarried mineral or coal as referred to in Article 81 shall be subject to proctuction ft¥'<;,.
the mining area;
o. taxation;
Article83
p. regular fees and production fees as well as income
-I he requirements of the sizeof area and perlud
portion of the stl.te!regions, consisting of net prodUC-
of time aa:ording to groups of miniog businesses appli-
tion and profit sharing since the production starts;
cable to the holders of IUPKshallcover:
q, settiement ofdisputes;
a, the size of 1 (one) WIUPK for a phase of exploration
r.
occupational safety and health;
for ferrous mineral mining shall be a maximum af
5.
mineral or coal con5etvation;
lOO.non(OOP hundredthousand) hectares.
Business Kews 7770/2-.G-2OW
b. the •....
17A
b. the size of 1 (one) WIUPK for a phase of opera-
Article86
tional production for ferrous mineral mining shall
(1) Corporate bodies as referred to in Artide 75paragraph
be a maximum of 25,000 (twenty-five thousand)
(2) that carry out actviues in WIUPK shall meet au-
hectares.
ministratlve, technical, environmental andfinancial re-
c. the size of 1 (one) WIUPK for a phase of exploration
for coal mining shall be a maximum of 50,000 (fifty
quirements.
(2) Further provisionson administrative, technical, erNi-
mnmental andfinandal requirements asreferred to in
thousand) hectares.
d. the size of 1 (one) WIUPK for
fl
phose of op-
erational production for coar mining shall be a
paragraph (1) are to be provided for in a government
regulation.
maximum of 15,000 (fifteen thousand) hectCHAPTERXTI
ares.
MINING DATA
e. the period of IUPK for exploration for metal min-
Article 87
erai mining shall be a maximum of 8 (eight)
Tosupport preparations for WP and development of
years.
f. the periodof IUPK for exploration for coalmining shall
be a maximum of / (seven) years.
g. the period of IUPK for operational production for metal
mineral or coal shall be a maximum of 20 (twenty)
mining scIences and technology, the Minister or governors
according to theirrespective authority can assign state and/
or regional research institutes to conduct inspection and
research on mining.
years and can be twice extended for 10 (ten) years
each.
Article 88
{l} Data obtained from mining business activities shall
belong to theGovemment and/orregional governments
Article 84
Further provisions on the procedure of obtaining
WIUPKas referred to inArtide 74 paragraph (2) and para-
graph (3) andArticle 75 paragraph (3) areto be provided
fur in a governm~t rpglilation.
according to their respective authority.
(2) Data owned by regional governments on mining busi-
nesses shall be conveyed to the Government for the
management of miningdata at a national level.
(3) The meneqcrnent of dam as referred to in paragraph
(1) shall be conducted by the Governmentandjor re-
CHAPTER XI
THE REQUIREMENTS OF SPEOAL MINING
gional governments according to their respective authority.
BUSINESS PERMITS
Article 85
Article 89
TheGovernment shall transparently make public
Further provisions on the procedures of assigning
the plan to carry out mining business activities in WlUP
state andforregional research institutes to conduct inspec-
as referred to in Article 30 and issue lUrK for explora-
tion and research as referred to in Articla 87 and the man-
tion andIUPKfor operational production as referred to
agementof dataas referred to in f1.rticle 88 areto be pro-
in Article 76.
vided for in a government regulation.
Business News mO/2-6-2009
CHAP'tER XIII.....
18A
a-lAPTERXnI
Part Two
RIGHTS AND OBUGATIONS
Obligations
PartOne
Article 95
Rights
Article 90
The holders of IUP and lUPK can carryout part or
whole of phases of mining businesses, either exploration
or operational production.
The holders of IUP and IUPKshall:
a. apply the principles of good mining techniquej
b. manage financeaccording to the Indonesian account-
ingsystem;
C. increase the added value of mineral and/or coal re-
sources;
Article 91
TIle holdt:lrs uf IUPand IUPK can lJel~fil rlOll1 public
infrastructures and facilities in the interest of mining ac-
tivitiesafter fulfillingthe legislation.
d. conduct development and empowermentof the local
community; and
e. complywith the tolerable limit of the supporting capac-
ity ofthe environment.
Article 92
The holders ofIUP andIUPKshaft have the right to
holdmineral, induding by-product mineral or coal they have
produced after paying exploration feesor production fees,
exceptby-product radioactive mineral.
Artide96
In applying the ptindpies of good mining technique,
the holders of IUP d rIU IUPK ~hdll ;
a. implement provisions on occupational safety and health
in the mining se<:.tpr;
b. ensure the safety of mining operations;
Article 93
(1) The holders of IUPand lUPK are not allowedto transfer the:iliUP end IUPK tv other parties,
(2) Thetransfer of ownership and/or shares at the Indonesian stock exchange can be conducted only after
certain phasesof exploration have been carried out.
(3) The transfer of ownership and/o. shares as referred
c. manage and monitor the mining environment, including reclarnatlol'l and post-mining;
d. make mineral and coal resources conservation ef-
forts;
e. manage mining residue from mining business activities in the form of solid, liquid or gas substance until it meets the environmental quality
to in paragraph (2) can orily be conducted on condi-
standards before being dlsposed of to the envi-
tianthat:
ronmental media.
a. the holders of IUP and IUPK shall notify the Minist~ (JDvprnflr,
or rPQent;!mRynr ;:!ccording to their
respective authorityof the matterj and
b. the transfer of ownership and/or shares doesnot
I un
counterto tl Ie leqlslatlon,
Artide94
ArtklQ 97
The holders of IUPandIUPKshall ensure that the
application of environmental quality standards accords with
the cnerectertsttcs of the relevant region.
Article 98
The holders of IUP and IUPK.shall be ensured of
-\ he holders of [UP and !UPK shall conserve the
their rightsto engage in mining businesses In accordance
functionandsupporting capadty of the relevantwater re-
with the legislation.
50urcesln accordance with the legislation.
Business News m.O/2-6-2009
Article S9....... ,...
19A
Article 99
(2) TheNinister, governors or regents/mayors according
(1) The holders of IUP and IUPK shallsubmita reclama-
to their respective authority canappointthird parties
tion plan anda post-mining planat the time of apply-
to conduct reclamation andpost-mining Lising the guar-
ing for IUP for operational production or IUPK for op-
anteed funds as referred to in paragraph (1).
erational production.
(3) The provisions as referred to in paragraph (2) shall
(2) Reclamation and post-mining shaU be earned out ac-
apply if the holder of IUP or IUPK does not conduct
cording to the appropriation of post-mining area.
reclamation and post-mining according to the plan
(3) The epproprietion of post-mlning area as referred to
agreed upon.
in paragraph (2) shall be put In the agreement be-
tween the holder ofIUPor IUPK andthe landtitleholder
Article 101...........
{ 10 be continued
on the use of land.
J
Article 100
(1) Theholders of IUP andIUPK shall make available guaranteed funds for reclamation and post-mining.
Business News mOj2-&2009
----===( 5 )====-
(3) eight. ....
lA
MINERAL AND COAL· MINING
(law NoAf2009 dated January 12, 2009)
[Continued from Business News No. 7770 pages lA-19A]
Article101
Furtherprovisions on reclamation and post-mining as referred to in Article 99 as well as on guaranteed
funds for reclamation and post-mining as referred to in
Article 100 areto be provided for in a government reg uta-
issued by the Minister, governors, regents/mayors according to tneu respective authority eSpecially ror proeessing and purification activities.
(3) The holders of IUP and IUPK as referred to in paragraph (1) are banned from processmq and purifying
outputsfrom miningbusinesses that do not have IUp,
fun.
IPR, orIUPK.
Article 102
Article IDS
The holders of !UP and IUPK shall increase the
addedvalue of mineraland/or ~I resources in carrying
(1) Corporate bodies that are not engaged in miningbusi-
out mining, processing and purification activities aswell as
nesses and intend to sell quarriedmineraland/or coa I
in making use of mineraland coal.
shall first secure IUPfor operation production for sales.
Article 103
(2) IUP as referred to in paragraph (1) canonly be issued
for 1 (one) sales by the Minister, governor, or regent!
(1) The holders of IUP and IUPK for operatiOnal production
shall process and purify output of the domestic min-
mayoraccording to their respective authority.
(3) Quarried mineral or coal that is to be soldas referred
to in paragraph (1) is subjectto production fees.
ing.
(2) The holders of IUP and IUPK as referred to in para-
(4) The corporate bodies as referred to in paragraph (1)
graph (1) can process and purify the mining output
and paragraph (2) shall submit a report on proceeds
from the sales of quarried mineral and/or coalto the
from other holders of IUP and IUPK.
(3) Further provisions on the needto increase the added
value as referred to in Article 102 as well as on the
Ministe~ governo~ regent/mayor according to their
respective authority.
processing andpurification asreferred to in paragraph
Article 106
(2) are to be provided for in a governmentregulation.
The holders ofIUPand lUPK shall givea priority to
Article 104
(1) Where processing andpurlfTcation are concerned, the
the useof local workers, goodsand services in accordance
with the legislation.
holders of IUP for operatlona I production andIUPK for
. operational production asreferred to in Article. 103can
cooperate with corporate bodies, cooperatives or lndlvlduals th",t have secured IUP or lUPK.
Article 107
In carryi~ out operational production, corporatel:xxl-
(2) IUP secured by the corporate bodies as referredto in
ies as the holders of !Up and IUPK shall involve local busi-
parqgraph (1) shalt be IUPfor operational production
nessmen living in the area in accordance with thelegislation.
Business News 7773/2-13-2009
Article 108 •.....
2A
ArtJcJe 108
CHAPTER XIV
(1) Theholders of IUP and lUPK shall draw up aprogram on
THE SUSPENSION OF MINING BUSINESS PERMITS
the development and empowerment of the communitY.
AND SPEClAL MINING BUSINESS PERMITS
(2) The program as referred to in paragraph (1) shallbe
consulted with the Government, regional government
andcommun(ty.
Article 113
(1) The suspension of mining business activities can be
qranted to the holdersof IUP and IUPK :
Article 109
a.
in caseof force majeure;
b.
in case of obstruction leading to partial or com-
Further provisions: on the development and empowermentof the communityas referred to in Article 108
plete c:uspenc;inn of mining hll<:ine<;c; :IlTivitipc;;
c.
if the supporting capacity of the environment in
are to be provided for in a government
the area can no longer shoulderthe burden of op-
leyulation.
cr.ltional production of mineral and/or roal re:::o~
in the area.
Article 110
The holders of IUP and IUPKshall submit all the
data on the results of exploration and operational production to the Minister, governor or regent/mayor according
to their respective authority.
(2) The suspension of miningbusiness activities as referred
to In paragraph (l)-doe; 1I0l reUuu~ the vdlitlily period
of IUP or IUPK..
(3) Anyapplication for the suspension of miningbusiness
activitiesas referred to in paragraph (1) letters a and
b shall be filed to the Ministe~ governor or regent!
Article111
mayoraccording to their respective authority.
(1) The holders ofIUP and IUPK shallsubmit periodicre-
(4) The suspension as referred to in paragraph (1) letter
ports ontheir business plan and realization of mineral
c can be doneby the mining inspectoror on the basis
and ooal miningbusiness activities to the Minister, gov-
of an application from the public to the Minister, gover-
ernor or regent;lmayor according to their respective
nor; or regent;lmayor according to their respective au-
authority.
thority.
(2) Further provisions on the model. type, time and pro-
(5) The Minister, qovernor, or regent/mayor according to
cedureof the reports as referred to in paragraph (1)
their respective authority shallissue a written decision
are to be provided for in a governmentregulation.
on whetheror not to accept the application as referred
to in paragraph (3) by providingreasons no laterthan
Article 112
30 (thirty) daysafter receiving the application.
(1) After 5 (five) years of production, corporatebodies as
the holders of IUPend IUPKwhose shares arc owned
Artida 114
byforeign partiesshalldivesttheir shares to the Gov-
(1) Suspension period due to force majuere and/or ob-
ernment, regional government, state-owned company,
struction as referred to in Article 113 paragraph (1)
regIonal qovernment-owned companyor nationalpri-
QUI
vate company.
extended on oneoccasion at the mostfor 1 (one)year.
be given fur 1 (one) year at the rnostond am be
(2) Further provisions on the share divestmentas referred
(2) If within a period of time before the expiry of the
to in paragraph (1) are to be provided for in a govern-
suspension period the nOlClers of IUP ancl IUPK have
ment regulation.
beenready to carry out operational activities, the said
Business News m3/2-13-2009
actiVities .....
3A
activities shall be reported to the Minister, governor or
Article118
regent/mayor according to their respective authority.
(1) The holders of IUPandIUPK canagain retum theirIUP
(3) TheMinister, governor, or regent/mayoraccording to
or IUPK with a written statementto the Minister, gov-
their respective authori1y shallrevokethe decision on
ernor, orregentjmayor according to their respective
suspension after receiving the report asreferred to in
authority by providing dear reasons.
(2) The returning of !Up or IUPK as referred to in para-
paragraph (2).
graph(1) is declared validafter being approved by the
Article115
Minister, governor, or regent/mayor according to their
(l) If the suspension of mining business activities is
respective authorityafter the holders ofIUP andIUPK
granted because of force majeure as referred to in
meettheir obligation.
Article 113 t"'Ir.:'IlJraph (1 ) Wtpr a. the obligation of the
Artide 119
holders of IUP and IUPK to the Government and regional governments is no longervalid.
(2) If the suspension of mining business activities: is
IUPor IUPK can be revoked by the Minister, governor, or regent/mayor according to their respective author-
granted because of obstruction as referred to in Ar-
ity if:
ticle 113 paragraph (1) letter b the obligation of the
a. the holder of IUPor IUPK does not meet the obligation
holders of IUP and IUPK to the GovernJllt::rll end regionalgovernments shall remain valid.
(3) If the suspension of mining business activities is
granted because of the supporting capadty of the en-
set in the IUP or rUPK and the legislotion;
b. the holderof IUPor IUPK commits a criminal offence
as referred to in this Law; or
c. the holderof lUP or lUPK isdeclared bankrUpt.
vironment in the area asreferred to in Article 113 paragraph (1) letter c, the obligation of the holders oflUP
Article 120
If after the period of time set in the IUPandIUPK
and IUPK to theGovernment andregional governments
has expired noapplication for the expansion or extension
shall remain valid.
of phases of activities isfiledor an application isfiled but it
Article116
Further provisions on the suspension of mining
does not meet the requirements, IUP and lUPK shall expire.
business activitiesas referred to in Article 113, Article 114
Article 121
and Article 115 are to be provided for in a government
(1) The holder of IUP or IUPK whose IUP or IUPK ex-
regulation.
pires because of the reasons as referred to in Ar-
CHAPTER XV
tide 117, Article 118, Article 119, and Article 120
THE EXPIRY OF MINING BUSINESS PERMITS AND
shall meet and settle the obligation in accordance
SPECIAL MINING BUSINESS PERMITS
Article 117
IUPareIUPK expire because :
with the legislation.
(2) The obligation of the holder of IUP or IUPK as referred to in paragraph (1) is considered fulfilled
a. tnev are returned;
after receiving approval from the Minister, gover-
b. they are revoked; or
nor, or regent/mayor according to their respective
c. their validityperiod expires.
authority.
Business News 7773/2-13-2009
Article 122
.
iA
Article 12.2
b. consultations, planning, andeqUipment test in the
(1) !Up or IUPKwhich has been returned or revoked or
fields of:
whose validily per ioel has expired as referred to in
1) rnlnlnqror
Article 121 shall be returned to the Minister, gover-
2) processinq and purfflcation.
nor, or regent/mayor according to their respective
autllortty.
Artlcle lZS
(2) WIUP or WIUPK whose lOP or IUPK has expired
(l).If the holder of IUP or IUPK uses mining services, the
as referred to in paragraph (1) shall be offered
holderof IUP or IUPK shallcontinueto take responsi-
to corporate body, cooperative or individual
bility for mining business activities.
through a mechanism in accordance with this
(2) Theexecutorof miningservice business can be corpo-
rate body, cooperative or individual according to the
law.
Classification and qualifications set by the Minister.
Article-123
(3) The operator of mining service business shall give a
If !Up or IUPK has expired, the holder of IUP or
priority to local contractors and workers.
IUPK shall submitall dataobtained from the results of exploration and operational production to the Ministel; gov-
Article 126
ernor, or regent/mayor i'lccording to their respective au-
(l) The holder of IUP or lUPK is banned from involYinQ its
subsidiary and/or affiliate in mining service business
thority.
in the mining business area it manages, without any
permit from the MinistQr.
CHAPTERXVl
(2) The pennit from the Minister as referred to in para-
MINING SERVICE BUSINESSES
graph (1) will be issued if:
Article124
(1) The holderof IUP or IUPK :>hdU use local and/or
11<::1-
a. no similar mining service compeny is found in the
area; or
tional mining service companies.
(2) In case of no mIning service companies as referred to
b. nomining service company is interested in/ableto
carry out the activities.
ln paragraph (1), the holder of !UP or IUPK can use
other mining service companies of Indonesian legal
Artide 127
entities.
Furtherprovisions on the operation of mining ser-
(3) The types of mining service businesses cover:
a. consultations, planning, execution, and equipment
Vice businesses as referred to in Article 124, Article 125
test in the fieldsof:
andArticle 126are to be provided for in a ministerial regu-
1) qeneral inspectlon;
lation.
2) exploration;
3) feasibility study;
4) mining construction;
5) transportation;
CHAPTERXVII
STAlE AND REGIONAL REVENUES
Article 128
6) mining environment;
7) post-mining and reclamation; and/or
8) occupational safetyand health.
Business News 7773/2-13-2009
(1) The holderof IUP or lUPK Shall paystate revenues and
regional revenues.
(2)The ......
SA
(2) The state revenues as referred to in paragraph (1)
shall consist of tax revenues and non·tax state rev-
referred to in Article 128 paragraph (5) for soil;rock
quarried in the mining.
(2) TIle holderof IUP or IUPK is subjectto production fees
enues.
(3) The tax revenues asreferred to in J)a~raPh (2) Shall
consist of:
as referred to in Artide 126 paragraph (4) letter c for
the useof soil/rock Quarried in the mining.
a. taxes that becomethe authority of the Government
in accordance with the laws and regulations In the
taxation field; and
b. import dutieS and excises.
(4) The non-tax SUIte revenues es referred to in para-
Article 131
The amount of taxes and non-taxstate revenues
collected from the holder of IUP, IPRor IUPK shall be set
based on the legislation.
graph (2) shall consist of:
a. regular fees;
Article 132
b. explOratIOn tees;
(1) TIle tariff of production fees .shall be set based on the
c. prodtJCtkln fees; and
d. compensation for data and information.
(5) The regional revenues as referredto in paragraph (1)
level of business control, productionand the prices of
miningcommodities.
(2) lhe tariff
or productIOn fees as rererrec to
in para-
graph (1) shall be set based on the legislation.
shah consist of:
a. regional taxes;
b. regionalleviesi and
c. other k!gal revenues based on the legislation.
Article 133
(1) Non-tax state revenues as referred to in Article 128
paragraph (4) constitutestate and regional revenues
Article 129
(1) Theholderof IUPK for operational production of metal
min~ral
whichare divided based on the legislation.
(2) Non-taxstate revenues whichconstitute portion forthe
and coal mining shalllKlv "\% (four percent)
regional governments shalf be directly paidto the re-
and6% (sixpercent) of net profitearned since it starts
gional treasury onceevery 3 (three) monthsafter be-
production to the Government and the regional gov-
ing paid to the state treaSUiY.
ernments respectively.
a-tAffiRXVID
(2) The portion of the regional governments as referred
to in paragraph (1) is set as follows:
THE USE OFLAND FOR MINING BUSINESS AcrrvmES
Artide134
a. 1% (one ~ro::nl) rOI the provinderl government;
b. 2.5% (two and a half percent) for the producing
regency/municipal government; and
c. 2.5% (two and a halt percent) ror other regertOf/
municipal governments IocatOO in thesame province.
(1) Theright to WIUp, WPR, or WIUPK does notcover the
right to soilon the surfaceof the earth.
{'2.} Mining
bu::.in~s llctivitie:5
Cl:Innot be carried out: in the
areadeclared off-limit to mining bustness activities in
accordance with the legislation.
Artide130
(3) The mining business aetlVlUes as reft:rf~ tQ In para-
(1) The holderof IUPor IUPK is exempted from produc-
graph(2) can be carried out after a permitisobtained
tion fees as referred to in Article 128 paragraph(4)
from the Govemment agency in accordance with the
letter c and regional taxes and regional levies as
legislation.
Business News n73/2-13-2009
"!'tide 135 ... , .
6A
Article 135
evaluation of mining businesses in the field of min-
The holder of !UP for exploration or IUPK for exploration can carry out aet!vltlesonly after obtcllning approval from the holder of landtitles.
erai and coal.
(3) The Minister can delegate the author ity to nur ture the
management of mining businesses by regeOOf/munidpal governments as referred to in paragraph (1),to the
Artide 136
governors.
(1) The holderof IUP or IUPK, beforecanying out opera-
(4) The Minister, governorsor regents/mayors according
tional production activities, shallsettle the question of
to their respective authority are responsible for nur-
land titles with the holder of landtitles in accordance
turing mining business activities carried out by the
with the legislation.
holder of IUP, IPRor IUPK.
(2) The questionof land titles as referred to in paragraph
(1) can be settled in stages In accordance with the
needs for land by the holderof IUP or IUPK.
Article 140
(1) The Ministershall supervisethe managementof min-
ingbusinesses by provincial govemments and regeOOl/
municipalgovernments according to their respective
Article 137
The holderof IUP or IUPK as reff'rrPd to in Article
authority.
(2) The Ministercan delegate the authority
to supervise
135 and Artide 136 that has settled plots of land can be
the management of miningbusinesses by regency/mu-
granted landtitles in accordance with the legislation.
nicipal governments as referred to in paragraph (1) to
the govemors.
Artide 138
The right to !Up, IPR, or IUPK does not constitute
the ownership Of lana titles.
(3) The Minister, governors and regents/mayors accord-
ing to their respective authority shall supervise the
mining business activities cerrled out by the holder of
!Up, IPRor IUPK.
Q-lAJ1TER XIX
NURlURING, SUPERVISION AND PUBUC PROTECTION
Article 141
PartOne
(1) The supervision as referred to in Article 140 covers:
Nurturing and Supervision
Artide 139
(1) The Minister shall nurture the managementof mining
a. miningtechnique;
b. marketing;
c. finance;
businesses by the provindal governments and regenO{/
d. processing of data on mineral and coal;
munidpal governments according to their respective
e. mineral and coal resources conservation;
authority.
f. occupational safety and health in the miningfield;
(') Thf' nurturing asreferred to in naracranh (1) covers:
a. guidances and standards for the management of
g. safe mining operation;
h. environmental management, reclamation and postmining;
miningbusinesses;
b. counseling, supervision and consultations;
e. education andtraining; and
d. planning, research, development, monitoring, and
Business News n73/2-13-2009
l.
useof localgoods, services, technology and enolneerlnqand designcapacity;
j. developmentof mining technical workers;
k. development
7A
k, development and empowermentof the localcom-
munity;
139, Article 140,Article 141, Articlel142, and Articlei 143
are to be provided for in a governmentregulation.
I. CDntrOl, development andapplIcation ornilnlng tech-
nology;
Part Two
m. other actiVities in the field of mining businesses in
Public Protection
theInterests of the public;
n, management of IUP or IUPKiand
o,
quantity, type, and quality of the output of mining
businesses.
ArOde 145
(1) Community members who are directly exposed to the
negative impactof mining business activities shall have
the right to :
(2) Supervision as referred to in paragraph (1) letter a,
a. get fair compensation as a result of the misman-
letter e, letter f, letter g, letter h, and letter 1 is con-
agementof miningactivities in accordance with the
ducted by mining inspectors in accordance with the
legislatioo.
legislation.
(3) 1f fl@ither the provincial governments nor reoencv!
municipal governments have mining inspectors, the Minister shall assign appointedmining inspectors to conduct the nurturing and supervision as referred to in
b. file a lawsuit with the court againstthe losses resulting from the mismanagement of mining businesses.
(2) Furtherprovisions on the publicprotection asreferred
to in paracraph (1) are set based on the legislation.
paragraph (2).
CHAP1£R.XX
Article 142
RESEAROf AND DEVEL.OPMENT AS WELL AS
(1) Governors and regents/mayors shall report the real-
EDUCATION AND TRAINING
izationof mining businesses in their respective areas
PartOne
at least once every 6 (Six) months to the MInIster.
(2) The Government may reprtmarrl reJIonal governments
If the execution of their authority runs counter to this
Law and other laws and regulations.
Research end Development
Artide 146
The Government and regional governments shall
encourage, conductand/or tacnltate mlrleraland coal re-
search and development
Article 143
Part Two
(1) Regents/mayors shall nurture and supervise small-
Education andTraining
holder mining businesses.
A.rticle 147
(2) Further orovisions onthe nurturing andsUpelVision of
smallholder mining businesses are to be provided for
The Government and regional governments shall
in the regional regulations of the regencies/municipali-
encourage, conductand/or facilitate education and train-
ties.
ing in the management of mineraland coal.
Article 148
Article 144
further provisions on the standards and procedures of nurturingand supervlslon as referred to in Article
Business News 7773/2-13-2009
Th£! Government, regional governments, pri-
vate sector and community can conduct education and
training.
SA
CHAPTERXXl
INVESTIGATION
Article 149
(3) Ovil servantinvestigators as referred to in paragraph
(1) shalt stoptheir investigation ifthere is no suffident
evidence and/or the case is a criminal orrenu:.
(1) In addition to investigators of the Indonesian Police,
(4) The authority as referredto in paragraph (2) and para-
civil servants whose scope of duty and responsibility
graph (3) shalt be carriedout in accordance with the
covers !:he rmnl"9 sector shall be gIVenspecIal authOr-
legISlation.
Ity asinvestigators in accordance with the legislation.
(2) The civil servant investigators as referred to In paragraph (1) shall have the authority to :
a. Investigate the truth of reports or information re-
0iAPTER XXII
ADMINISTRATIVE SANcnON
Artide 151
lated to commaJ offern:es in mining business activities;
(1) The MInister, governors, or regentsJmayors according
to their resPective authority have the right to impose
b. investigate individuals or bodies suspected of committing criminal offences in miningbusiness activi-
admlnlstratfve sanction on the holders of Iup, IPR or
ties;
IUPK for violating provisions in AJtide 40 paragraph
(3), Artide 410 paragraph (5), ArtIcle 41, Article 43,
c. summon and/or take by force peopleto be heard
and Questioned as witnesses or suspects In criminal offenres In mining business activities;
Article 70, Article 71 paragraph (1), Article 74 paragraph (4), Artide 74 paragraph (6), Artide 81 paragraph (1), Article 93 paragraph (3), Artide 95, Article
d. search places and/or facilities believed to have been
96, Artide 97, Artide 98,Article 99, Article 100,Article
used to commit criminal offences in mining busi-
102, Article 103, Article 105 paragraph l"), Article 10~
ness activities;
paragraph (4), Article 107, Article 108paragraph (1),
e. investigate miningfacilities and infrastructures and
Artide 110, Article 111 paragraph (1), Article 112 para-
use of equipment believed to have been
glUph (1), Article 11-4 paragraph (Z), Article 11!i para-
stop the
used to commit criminal offences;
f. seal and/or confiscate mining equipment used to
commit crmlnal offencesas evtdenCej
g. invite and/or ask for assistance from experts
graph(2), Article125paragraph (3), Artide 126paragraph (1), Article 128paragraph (1), Artide 129paragraph (1), or ArtICle 130 paragraph (2).
(2) The administrative sanction as referred to in paragraph
needed to.investigate Crfminal offences: in mining
(1) shall oome in the fonn of :
business actiVities; and/or
a. written warning;
h. stop investigations into Olminal cases in mining busi-
b. suspension of part or whole of exploration or op-
erational production; and/or
c. revocation of!Up, IPR, or IUPK.
ness actiVities.
Artidel50
Article 152
(1) Ovll servant investigators as referred to In ArtkJe 149
can arrestmOlinal suspects in mining business activities.
If regional governments do not implement provi-
(2) CivilservantInvestigators as referred to in paragraph
sions In Artide 151and the resultsof evaluation made by
(1) c;.hall notify the start of investigation andsubmitthe
the Minister as referred to In Article 6 paraeraph (1) letter
results of their investigation to the Indonesian Polirein
j, the Minister can suspend and/or revoke IUP or IPR in
accordance with the legislation.
accordance withthe legislation.
Business News 7773{2-13-2009
Article 153! ..•
9A
Artide 153
Article 159
If regional governments object to the suspension
The holderofIUp' IPR,or IUPK who intentionally
and/or revocation of !UP and IPR by the Ministeras re-
submits the report as referred to in Article 43 paragraph
(t:rrW to ill A.rtide 152, the regional governments can mise
(1), Artide 70 letter e, Article 81 paragr,.,ph (l), Article
the objection in accordance with the legislation.
105 paragraph (4), Article 110, or Article 111 paragraph
(1) by providing incorrect or falseinfonnation shall be sen-
Articlel~4
Any dispute arising from the execution of IUP, IPR,
tenced to a maximum of 10 (ten) years In Jail and nnec a
maximum of Rp10,OOO,OOO,OOO (ten billion rupiahs).
or IUPK shall be settled through the domestic court and
Article 160
arbibation in accordance with the legislation.
(1) Anybody who conducts exploration withoutIUPor IUPK
Article 155
asreferred to in Article 37 or Article 74 paragraph (1)
Any legalconsequence arising from the suspen-
shall be sentenced to a maximum of 1 (one) yearand
sian and/orrevocation of IUP, IPR or IUPK as referred to in
fined a maximum of Rp200,OOO,OOO (two hundred mil-
Artide 151 paragraph (2) letter b and letter c shall be settled
lion rupiahs).
in accordance with the legislation.
(2) Anybody who holdsIUP for exploration but conducts
operational production shall be sentenced to a maxiArtide 156
Furtherprovisions on the procedure of imposing
mum of 5 (five) vears in jail and fined a maximum of
RpIO,OOO,Ooo,OOO (ten billion rupiahs).
administratiVe sanction as referred to in Article 151 and
Article 152 are to be provided for in a government regula-
ArI:ide 161
Anybody or holder of lUP for operational produc-
tion.
tion orIUPK for operational productionthataccommodates,
Article 157
benefit5 from, processes and purifies, transports, sells min
The regional governments which do not meet pro-
eraland coal that do notcomefrom the holder of IUp, IUPK
visions in Artide 5 paragraph (4) shall be subject to ad-
or permitas referred to in Article37, Article 40 paragraph
ministrativesanction Inthe fohn of temporarywithdrawal
(3), Artide 43 paragraph (2), Artlde 48, Article 67:
of their authority over the right to manage mineral and
paragraph (1), Article 74 paragraph (1), Article 81 para-
coal mining businesses.
graph (2), Article 103paragraph (2), Article 104paragraph
(3), or Article 105 paragraph (1) shall be sentenced to a
Q-IAPTER XXIII
OUMINAL PROVISIONS
Article 158
Anybody whocarries out miningbusiness without
IUP, IPRor IUPK as referred to in Article 37. Article 40
maximum of 10 (ten) years in jail and fined
Rp10,OOO,OOO,OOO (ten billionrupiahs).
Article 162
paragraph (3), Artide48,Article 67 paragraph (1), Article
Anybody who obstructs or disrupts the mining business activities of the holder of nJP or IUPK that has met the
74 paragraph (1) or paragraph (5), shall be sentenced to
qualifications as referred to in Artide136 paragraph (2) shall
a maximum of 10 (ten) years in jail and fined a maximum
be sentenced to a maximum of 1 (one)yearinjail or fined a
of Rp10,000,000,000 (ten billion rupiahs).
maximum of Rp100,OOO,OOO (onehundred million rupiahs).
Business News 7773{2-13-2009
lOA
Article 163
Article 167
(1) If the criminal offence as referred to in this chap-
WP shall be managed by the Ministerin a nation-
ter is committed by acorporate body, in addition
ally-integrO"ltPt"l WP lntnrmatlon c;yc;.tp,m tn harmonba thp
to jail sentence and fine imposed on its manage-
coordinate system and basicmap in issuing WUP, WIUp,
ment the corporate body shall also be subject to
WPR, WPN,WUPK and WIUPK.
nne pius 1[3 (one-third) or the maximum fine Imposed on it.
Article 16B
(2) In addition to the fine as referredto in paragraph (1),
Toincrease investment in the mining field, the G0v-
the corporate body can be subjectto additional sanc-
ernment can provide tax refief and facilities in accordance
tion in the form of:
withthe Ieg~, exceiXotherwise stipulated inIlP orIUPK.
a. the revocation of business permit; and/or
b. the revocation of statusof the corporate body.
CHAPTERXYN
TRANSI110NAl PROVISIONS
AI tide 16"1
In addition to provisions in Article 158, Artide 159,
Article 169
When this law begins to take effect:
Article 160, Article 161, and Article 162, the perpetrator
a. Contracts of work and agreements of work for the op-
of criminal offence can be subjectto additional sanction in
erationof coalminingthat havebeenin existence be-
the form of :
fore this Law comes into force shall remain valid until
a. the seizure of equipmentusedto commit the criminal
the contracts/agreements expire.
b. Provisions in article of the contracts of work and agree-
offence;
b. the seizure of profit earned from the criminaloffence;
ments of work for the operation of coal mining as referred to in letter a shall be adjusted
and/or
c. the obligation to pay all expenses arising from the crimi-
to this:
Law no
later than l(one) year after this Law is promulgated,
except on state receipts.
naloffence.
c. Exception to state receipts as rererreo to In letter b Is
Article 165
an effort to raise state receipts,
Anybody that issues IU?, IPR, or IUPK in bread1 of
this Lawand abuses his/her authority shall be sentenced
to a maximum of 2 (two) years in jail and fined a maximum of Rp200,OOO,ooo (two hundred million ruplehs).
Article 170
The holders of contract d workas referred to in Artide 169l:Mt h:we heen engaged in production shall conduct
purification asreferred to in Artide 103 paragraph (1) nolater
CHAPTER XXIV
than5 (five) years afterthis law has been promulgated.
OTHER PROVISIONS
Article 166
Article 171
Any problem that arises from the execution of IUp,
(1) The holders of contract of workand agreement of work
IPRor IUPK with regard to environmental impactshall be
for the operation of coal mining as referred to in Ar-
settled in accordance with the legislation.
ticle 169 that have conducted phases of activities in
exploration .....
llA
exploration, feasibility study, construction or operational
production, no later than 1 (one) year after this Law
Article 174
Theregulations needed to implement thislaw shall
has been promulgated, shall submit a business plan
be stipulated 11U ldlt::r U Idll 1 ( 01 ie) yt:dr
for all areas of contract/agreement until the expiry of
been promulgated.
dfLer
Uli~ [.qw has
the contract/agreement to secure approval from the
Government
(2) If the provisions as referred to in paragraph (1) are
not fulfilled, the size of mining eree thet hes been given
to the holders of contract of work and agreementof
work for the operation of coal mining shall be adjusted
to this Law.
Article 175
This Law shall come into force as from the data of
promulgation.
For public cognizance, this Law shall be promulgated by placing it in the Statute Book of the Republic of
Indonesia.
Article 172
Appl ications for contractof work and agreement
of work for the operation of coal mining that have been
filed to the Ministerno later than 1 (one) year beforethis
Law is put into force and have secured in-principle ap-
Endorsed in Jakarta
proval or permit for rrf>liminrlry lnspectlon shall continue
on January 12, 2009
to be respected andcan be processed without any auction
THE PRESIDENT OFTHE REPUBUC OF INDONESIA,
sgd.
based on this law.
DR. H. SUSlLO tsAMtsANG YUDHOYONO
CHAPTER XXVI
CONQUSION
Article 173
(1) When this Law begins to take effect, Law No.
11/1967 on the prinCiples of MinIng (Statute
Promulgated in JlIMrm
Book of 1967 No. 22, Supplement to Statute
on January 12, 2009
Book No. 2831) shall be revoked and declared
TI-lE MINISTER OFLAW AND HUMAN RIGHTS,
null and void,
(2) When this Law begins to take effect, all regulations
sgd.
ANDI MATTAlATTA
wh ich serve asthe ImplementaUun requlations of U1W
No. 11/1967 onthe Principles of Mining (Statute Book
of 1967 No. 22, Supplement to Statute Book No. 2831)
shall remain valid, provided they do not run counter to
thts Law.
Business News 7773/2-13-2009
STATUTE BOOK OFTI1E REPUBllC OF INDONESIA
OF2009 NO.4
EJJJCTDATlQN. , ' L....
1l.A
ELUCIDATION
OF LAW NOA/2009
ON
MINERAL AND COAL MINING
1 GENERAL
the operation and management of mineral and coal
The 1945 Constitution, Article 33. paragraph (3) affirmsthat land, waters andnatural resources contained
mining.
This Law contains main thoughtsas follows:
therein arecontrolled by the state andare used for the
1. Mineral and coal asunrenewable resources are con-
greatest possible benefit of the people's prosperity. Con~
trolled by the state and the developmentand effi-
sidering that mineral andcoalasnatural resources con-
cient useof mineral and coal are conducted t:y the
mined in the eerth constitute unreneweble neturel re-
Government and regional governments! along with
sources, theymustbe managed asoptimally, efficiently,
business players.
transparently! sustainably, environment-friendly and
2. TheGovernment latergives opportunities to corpo-
fairlyaspossible for thegreatestbenefit of the people's
rate bodies ofIndonesian legal entity, cooperatives,
prosperity in a sustainable way.
individuals andthe local community to operate min-
Tomeet provisions in Article 33 paraoraph (3) of the
eraiandcoal mininobased on permits andthose in
1945 Constitution, Law No. 11/1967 on the Principles
line with the regional autonomy are given by the
of Mining has been issued. During its more than four
Government and/orregional governments accord-
decades of existence, the laW hasconmbUted sjgnltl~
mg [0 theIr respecnve autnonty,
3. Within the frame of decentralization and regional
cantcontributions to the national development
In further developments, the law whose content is
autonomy the management of mineral andcoal min-
centralistic in nature is no longer relevant to the cur-
ingis based onthe principles of externality! account-
rent situation and future challenges. In addition, the
abilityandefficiency involving the Government and
development of the mining sector must adjust itself to
regionalgovemments.
the strategic environmental changes, either at a na-
4. Mining businesses mustbe able to givethe greatest
tionalor international level. The mainchallenge facing
possible economic andsocial benefitto the Indone-
the mineral andcoalmining is the impactof globaliza-
sian people's welfare.
au-
5. Mining businesses must be able to speed up the
tonomy, human rights. environmental protection, de-
development of areas, boost the economic activi-
velopment of technology and information, intellectual
tiesofthe communityfsmaU·and medium-scale busi-
property rights and demand for an increased role of
nessmen andencourage the growthof mining-sup-
the prIVate sector andtne comrnunlty.
porting industries.
tion that encourages democratization, regional
To face the strategic environmental challenges and
6. To ensure sustainable development! mining busi-
answer all the problems, it is necessary to enact a new
ness activities mustbecarried out by observing the
lawon mineral and coal mining to serve asa legal basis
principles of the environment, transparency andpub-
for the reformation and rearrangement of activities in
lic partidpation.
Business News 7773/2-13-2009
II. ARTICLE
.
13A
D. ARTICLEBYARTIOLE
Artide 7 up to Article 14
Sufficiently dear.
Article 1
SuffICiently dear.
Artide 15
The delegated authority ic; the (luthoritv in setting
Article 2
WUP for non-metal mineral and rock in one regency!
Lettera up to Letter c
municipality or in more than one regencies/municipali-
Sufficiently dear.
ties.
Letter d
The principles of sustainabilrty and environmentorientation referred In herPinare the
well~planned
prin-
ciples which integrate economic, environmental and
Article 16
~umclently
clear.
sodo-cuttural dimensions in all mineral and coal minill9 businesses to create proSperity at present and in
the future.
Article 17
Referred to as size is either maximum or muumumsize.
Artide
j
Up to Article 5
Sufficiently clear.
Article 6
Paragraph (1)
letter a and Letter b
SuffldentlY dear.
letterc
National Standards in the field of mineral andcoal
mining aretechnical specifications or something stan-
dardized.
Letter d lip to Letter r
SuffICiently clear.
letters
Referred to as the balance s.heet of mineral and
coal resources at a national level is the balance sheet
whichdemonstrates the quantity of resources, deposIts and producuon of mineral and C<Jal on a national
scale.
Letter t andletter u
Sufficiently Clear.
Paragraph (2)
Sufficiently dear.
Business News n73/2-13-2009
Borders are set under experts' viewsacceptable
to all parties.
Article18 up to Artide 20
Suffidentlydear.
Article 21
WPR is setbased 011 the plan by synchronizing data
andinformation through the WP information system.
Altic!e22
Letter a
Referred to as the slde and riverbank is the area
of accumulating secondary mineral enrichment (pay
streak) in the meanderof river.
letter b up to Letter f
Sufficiently clear.
Altic!e23
Announcement on the WPR plan is madeat the
office of village head and the relevant office/agency,
complete with a situation map demonstrating location,
size, and boders aswell as coordinate list in addition to
list of the holders of titles to land located in WPR.
Artide24.•.•.
14A
Article 24 up to Article 26
Article30
Sufficiently clear.
Sufficiently dear.
Article 27
Article31
Paragraph (1)
Referred to as size is either maximum or rnlnl-
The setting of WPN in the national interests is
meant to encourage the national economic growth,
energy resilience and national strategic industries as
mum size.
Bordersare set based on experts' views acceptable to allparties.
well as to increase the competitive edge of national
industries in the face of globalchallenges.
Article 32 and Article 33
Certain commodities referred to herein include coc-
SuffIciently clear.
per, tin, gold, iron, nickel and bauxite as well ascoal.
Theconservation referred to herein also includes
Article34
efforts to manage mineraland/or coal whose sources
Paragraph (1)
are limited.
Letter a and Letter b
Sufficiently dear.
Paragraph (2)
P"'r",ornph (7)
Referred to as part of its area is meantto set the
percentage of the sizeof the area to be managed.
Letter a
Referred to as radioactive mineral mining is the
mining es referred
Paragraph (3)
Letterb
Referred to as the time limit is that WPN set for
conservation can be managed after (:l certain penod
to in the law on nuclear power.
ur
time haspassed.
Metalmineral mining referred to herein includes
mineral bv-products.
Letter c and Letter d
SuffiCiently dear.
Paragraph (4)
Sufficiently clear.
Article 28
Sufficiently clear.
Paragraph (3)
Sufficiently dear.
Article35 up to Article 37
Sufficiently dear.
Article 29
Article 38
Paragraph (1)
Letter a
Referred to ascoordination isaccommodating all
Corporate bodies referred to herein also include
regional interests related to WUPK in accordance with
state-owned companies and regional
the legislation.
owned companies.
Paragraph (2)
Letter b and Letter c
Sufficiently dear.
Business News 7773/2~13~2009
government~
Sufficiently clear.
Article 39 .....
lEiA
Paragraph (4)
The period of 7 (seven)yearscovers 1 (one) year
Article 39
Paragraph (1)
SuffICiently dear.
rI general inspection; 2 (two) vears of exploration which
Lettera up to Letterc
can be extended twicecovering 1(one) year each; and
2 (two) yearsof feasibility study.
Sufficiently clear.
Letterd
statement of readiness referred to
herein includes
environmental management lDst as a result of exphr
Article 43 up to Article 45
SuffICiently dear.
ration act:ivities.
Artide46
Lettere up to Letter n
Paragraph (1)
Suffidentty dear.
SUffidently dear.
Paragraph (2)
ParaglClph (2)
Suffldentlydear.
Referred to as data on the resUlts of feasiblJity
study aresynchronized data owned bythe Govemment
Article 40 and Article 41
andregional govemments.
Sufftciently dear.
Artide42
Paragraph (1)
Artide47
The period of 8 (eight) years covers 1 (one) year
of general inspection, 3 (three) years of exploration
Paragraph (1)
which can be extended twice covering 1 (one) year
includes 2 (two) years of construction.
each; 1 (one) of feasibility study which can beextended
twicerovering 1 (one) year each.
Paragraph (2)
Paragraph (2)
Paragraph (3)
The JJl'!riod of 3 (f"hree) yea~
covers 1 (one) of
The period of 20 (twenty) years referred to herein
SuffICiently dear.
Referred to 'JS
non merel minel<l.lsof certe.ill typt:::;
general inspection; 1 (one) year of exploration and 1
include limestone, diamond and preciOus stone.
(one) year offeasibillty study.
Theperiod of 20 (twenty) years referred toherein
covers 2 (two) years otconstruction.
Referred to as non metal minerals of certain type:.>
include limestone for<:ement industry, diamond and precious stone.
TIle petiud of 7 (seven) yeas covers 1 (one) year
of general inspection; 3 (three) years of exploration
which can be extended twice covering 1 (one) year
Paragraph (4)
Suffidently clear.
Paragraph (5)
The period of 20 (twenty) years referred to f1erein
covers 2 (two) years of construction.
each; 1 (one) year of feasibility study which can be
extended once for 1 (one)year.
Paragraph (3)
The period of 3 (three) years covers 1 (one) year
of general inspection; 1(one) year of exploration and 1
(one)yearof feasibility study.
Business News n73/2-13-2009
Artide 48 up to Artide 50
Suffidently dear.
Article 51
Metal mineral mining referred to herein include
by-product mlnerals,
Article 52 ....
16/\
Article52
Article61
Paragraph (l)
Paragraph(1)
Sufficiently dear.
Paragraph (2)
5uffidently dear.
Paragraph (2)
If in WIUP there are other minerals found in dif-
If in WIUP there are other minerals found in dif-
ferent places vertically or horizontally, other party can
ferent places vertically or horizontally, other party can
manage the mineral in question.
manage the mineral in question.
Paragraph (3)
Suffldently dear.
Artide 53 and Artide 51-
Sufficiently dear.
~ragrarh
(3)
Sufficiently dear.
Article 6~ up to Artide 66
SuffICiently dear.
AIt1Cle 55
Artldt: 67
Paragraph(1)
Paragraph (1) and paragraph (2)
Sufficiently dear.
Sufficiently dear.
Paragraph (2)
If in WIUP there are other mineralsfound in different places vertically or horizontally, other partycan
Paragraph (3)
-The application referredto herein musthave ad-
manage the mineral in question.
equate duty stamp and a recommendation from the
Paragraph (3)
village head/customary chief about the truth of the
Sufficiently.
Article56 and Article57
Suffidently dear.
history of the applicantto receive a priority to get IPR.
Article 68 and Article 69
5uff"lcientl'l dear.
Artide 58
Article70
Paragraph (1)
Letter a and Letter b
SuffICiently dear.
Sufficiently dear.
Letterc
paragraph (2)
EnvironmenUll meneqernent activities cover pre-
If in WIUP there are other minerals found in dif-
vention and control of pollution and restoration of the
ferent places vertically or horizontally, other party can
environment induding reclamation of former mining
manage the mineral in question.
siteS.
Paragraph (3)
Sufficiently dear.
Letterd
SuffICiently dear.
Article 59 and Article60
Sufficiently clear.
Business News n73/2-13-2009
Lettere
Reportis submitted onceevery4 (four) months.
Article71
•....
17A
Artide 71 up to Article 73
accordance with the legislation.
Sufficiently dear.
Article 00 up to Article 02
Artide74
Suffidently dear.
Paragraph (1)
Observing the regiOnal interests referred to herein
means empowering regions.
Paragraph (2)
Metal mineral mining referred to herein includes
by-product minerals.
Paragraph (3) up to Paragraph (7)
Sufficiently dear.
Article75 and Artide 76
Sufficiently dear.
Artfde83
letter a up to letter d
Sufficiently dear.
L.ettere
The period of 8 (eight) yearscovers 1(one) year
of general inspection, 3 (three) years of exploration
which can be extended twice covering 1 (one) year
eam; 1 (one) year of feasibility study whim can be
extended oncefor 1 (one) year.
Letterf
The period of 7 (seven) yeas covers 1 (one) year
Artide 77
of general inspection; 2 (two) years cI exploration which
Paragraph (1)
can be extended twice covering 1 (one) yeareach; and
Suffidently dear.
Paragraph (2)
Referred to as data on the results of feasibility
study are syndlroniZed dataowned by the Government
2 (two) years offeasibility study.
LAtPrg
The period of 20 (twenty) years reterred to herein
covers 2 (two) yearsof construction.
and regioncll guvenunents.
Artide ~ up to Article 92
Artide 78
Suffidentfy dear.
letter a up to L..etter c
SuffidentIy dear.
letterd
Statement of readiness includes environmental
Artide93
Paragraph (1)
Sufficiently dear..
management costarising from exploration actiVities.
letter e up to Letter n
Sufficiently dear.
Paragraph (2)
Referred to as certain phases of exploration are
the discovery of 2 (two) prospective areasin explore-
Article79
tion actiVities.
Lettera up to Letterx
Paragraph (3)
Suffidentiy dear.
Suffkiently dear.
L..ettery
The inclusion of dause sharedivestmentis valid
only if the shares are owned by foreign investors in
Business News 7773/2-13-2009
Article 94 and Article 95
SuffICiently dear.
Article 96 .....
lBA
Artide96
Letter a up to l..etOOr d
Suffidently dear.
Paragraph (2) and Paragraph (3)
~tIy~r.
Artide104
Suffidenttydear.
Lectere
Referred to as mining residue indudestailing and
coal waste.
Article 105
Paragraph(1)
Referred to as shall first secure IUP ror opera-
ArtIde97
SuM:ietttfy dear.
Al'tide98
1'heseprcMsions are needed a:msidering that min-
ing businesses in water soerees een changethe rnorpho\og'J of water soerces, either at the upper or lower
reach of water sources.
tional production for sales is theeffort to take care of a
pennit to transport and sell quarried minerals and/or
a>aI.
Paragraph(2)
Pe«nit is issued aftera.n audit a.nd ewtuation of
quarried mineralsand/or coal has been done by the
relevant teehnita\ agency.
Paragraph (3) and Paragraph (4)
StJfficiently dear.
ArtiCle -99 and 'Artide ioc
SufFiciently clear.
ArticlE'! 1M
The use of local workers always ccnslders
Article 101
Pfovi:5ivns un 9U'"cmteed funds on Jeclomlltioo end
the competency of workers and the know how of
workers.
These provisions aremeant to support and grow
guaranteed funds on post-mining rover the amount,
procedure of paymentand disbursement. and rr=pott
the natiClnal capabiUty to be able to compete with other
on the use of guaranteed fimd~.
natIOnS.
Artidel02
ArUPe 107
Added value referred to herein is meant to improve the final prodUd5 of mhlingbuslnesses or the
use of by-product minerals.
SuffICiently dear.
Article 108
Paragraph(1)
Article 103
Paragraph (1)
The obligation to conduct domestic processing and puriftcation IS. intended among others to
improve and optimize th~ mll'll.,g var(J~ of prod-
SUffidently dear.
Paragraph (2)
Referred to as the community is the community
domiciled around the minin" oPeratiOnS.
ucts, the supp\y of raw materials to industries,
the absorption of labour force, and an increase
In state revenues.
Rusines5 News n73J2-13-2009
Article 109 up to Article 112
Sufficiently dear:
Article 113.,.......
19A
Article 113
Paragraph (1)
Article 119
SufFldentty dear.
tenere
Force majeure referred to herein includes war,
Article 120
civil unrest, rebellion, epidemic, earthquake, flood, fire
and natural disasters beyond the capacity of human
from the phase of exploration
beings.
tionalproductiOn.
Improvement referred to.herein means an increase
to the phase of opera-
letterb
Obstruction referTed to herein includes blockade,
strike, and labour dispute out of the mistakes of the
Article 121 up to Article 123
Sufficiently dear.
holder d lOP or IUPK and the lawand regulation issued
by the Government so that the ongoing mining busi-
Article 124
ness activitiesareobstructed.
Paragraph (1)
Letterc
SuffICiently dear.
Paragraph (2)
Sufficiently dear.
National companies can set up their branches in
regions.
Paragraph (2) and Paragraph (3)
~uffidently
dear.
Paragraph (3)
Application mustcontain explanations onthe f'ora!
tmljeure and/or obstruction leading to the parti~1 or
Article 125 up to Article 134
Sufficiently clear.
total stoppage of mining business activities.
Paragraph (4)
Article 135
ApplICatIOn rrom the community mustcontainex-
Approval flom the holder of land UUe:; ls 1T1~lIllo
planations on thesupporting capacity of the local envi-
settleplots of landdisrupted by exploration actiVities,
ronment related to miningbusiness activities.
such asdrilling, test ditchandsampling.
Paragraph (5)
SUfficiently dear.
Artide 136 UDto Article 144
~ufficiently dear.
Artide 114up to Article 117
Sufficiently dear.
Artide 145
Paragraph (1)
Article 118
Paragraph (1)
(1P1Ir rPac;onc; refurrE=!d to herein include the ab-
senee of prospects in technical, economic or environ-
The community referred to herein arethosewho
are exposed to the direct negative Impact of mining
business actiVities.
Paragraph (2)
mental terms.
Sufficiently dear.
Paragraph (2)
Article 146 up to Article 164
Sufficiently dear.
Business News n73/2-13-2009
Suffidently dear.
Article 165 ....•
ZOA
Article165
Referred to asanybody is the offidal issuing IUP.
IPRorIUPK.
the agreement of work. for the operation of coalmining
must be adiusted to this Law.
Letterc
Sufficiently dear.
Artid~
166 up to Article 168
Sufficiently dear.
Article 170 up to Artide 175
SuffICiently dear.
Article 169
Lettera
Sufficiently dear.
SUPPLEMENT TOSTATUTE BOOK OF
TliE REPUBUC OF INDONESIA NO. 4959
Letterb
All articles contained in the contractof work and
Business News m3/2-13-2009
-===( S )===-
Article 10 ••...