Background

After around 11 years from its enactment, the House of Representatives (DPR) passed major revisions to the 2009 Mining Law on May 12, 2020. The Mining Law amends 83 articles, adds 52 new articles and removes 18 articles from the 2009 Mining Law.

The new mining bill is currently awaiting signature from President Joko Widodo.

Under the new mining law, 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 central government, provincial and regency administrations based on their relevant jurisdiction.

The new mining law also gives assurance of the continuation of the current COW and CCOW holders without tender process in the form of IUPK (Special Mining Business License), providing incentive for companies integrated with value-added industries.

Another majors revisions include the assurance on spatial utilization of mining area that has been designated, the obligations of mining license holder to allocate fund for discovery of reserve and community development for locals, divestment obligation in stages, reclamation and post-mining obligation, and the obligation of governor to submit the mining license to the minister.

CoalAsia Magazine and Petromindo would organize webinar series on new mining law to explore impacts on the future of the country’s mining industry both mineral and coal as well as the future of mining downstream industry.

The webinar would explore:

• Analysis of major revision/changes in licensing regime under the new mining law
• What does the revisions mean to existing and new mining investors?
• How the new mining law could attract investors in mining.
• Will the new mining law could boost exploration on greenfield?