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Changes of Investment Structure in Mineral and Coal Mining Sector

Changes of Investment Structure in Mineral and Coal Mining Sector

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Indonesia’s Minister of Energy and Mineral Resources has recently relaxed regulations on changes in investment structures within the mineral and coal mining sector. In the past, changes such as those in investments, financing source, investment status (Foreign Investment or Domestic Investment), Articles of Association, could only be performed after obtaining ministerial approval.1

Now, through the Regulation of the Minister of Energy and Mineral Resources No. 11/2018, any increase in authorized capital, subscribed capital, and paid-up capital in mining companies can come into effect without approval. The caveat is that these changes must be in accordance with existing work and financial plans. Changes in investments that cause changes in control - such as an increase in authorized capital that changes the composition of shares ownership, for example - would still require the Minister’s approval. Similarly, changes in the composition of the BOD or BOC must be approved by the Minster of Energy and Mineral Resources.

Environment, Energy, and Natural Resources is one of Schinder Law Firm’s key practice offerings. Our firm has extensive experience in advising and representing numerous domestic and multinational mining companies in M&A transactions and various legal issues related to the industry. Should you need any further legal assistance, please do not hesitate to contact us.

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1Minister of Energy and Mineral Resources Regulation No 27/2017.

About the author:

Yunarto Yunarto, S.H., M.Kn

Yunarto obtained his Bachelor of Law (SH) degree from Universitas Tarumanagara and Master of Public Notary (M.Kn) degree from Universitas Pelita Harapan. He is admitted to the Indonesian Bar Association (PERADI) and fully qualified to advise and represent clients before or outside Indonesian courts. He is fluent in Bahasa Indonesia, Mandarin and English. Yunarto’s practice focuses on foreign and domestic investment, mining, construction, general corporate, and mergers & acquisition.




Changes of Investment Structure in Mineral and Coal Mining Sector