Background

The House of Representatives (DPR) passed major revisions to the 2009 Mining Law on May 12, 2020. The Mining bill amends 83 articles, adds 52 new articles and removes 18 articles from the 2009 Mining Law.

Under the mining law bill, the central government holds greater authority to manage mining industry, including issuing business license known as Perizinan Berusaha. The 2009 Mining Law distributed the authority on the control and supervision of mining sector to the central government, provincial government and regency administration based on their relevant jurisdiction.

Another long-standing concern of foreign investors is the divestment obligation. The new Mining Law states the divestiture requirement is 51 percent and may be carried out in stages with qualified Indonesian parties.

Many have previously said that the greatest impediments to foreign investment in the Indonesian mining sector is divestiture obligation that applies to foreign-owned mining companies.

The second webinar series jointly organized by CoalAsia Magazine and Petromindo would address some of big questions facing foreign investors in Indonesia mining industry.

Key discussion points will include

• What are implications of new mining law for foreign investors?
• Is the new mining law attractive for new foreign investors to invest in Indonesian mining sector, including in Greenfield exploration?
• Overview and analysis on the new divestment obligation scheme.