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Expansion Guidelines for Mining Business Permit Areas (Wilayah Izin Usaha Pertambangan/”WIUP”) and Special Mining Business Permit Areas (Wilayah Izin Usaha Pertambangan Khusus/”WIUPK”) for Mineral and Coal Conservation in Indonesia

The Minister of Energy and Mineral Resources, Arifin Tasrif, issued the Minister of Energy and Mineral Resources Decree No. 266.K/MB.01/MEM.B/2022 as a regulation in Indonesia, regulating the guidelines for applying, evaluating and processing the expansion of Mining Business Permit Areas (Wilayah Izin Usaha Pertambangan/“WIUP”) and Special Mining Business Permit Areas (Wilayah Izin Usaha Pertambangan Khusus/“WIUPK”) in the context of mineral and coal conservation on 10 November 2022.

Expansion of WIUP and WIUPK is limited to areas with the following criteria:

  1. A maximum area of 25,000 hectares for a Metal Mineral WIUP
  2. A maximum area of 15,000 hectares for a Coal WIUP, and
  3. Following the evaluation results of the Minister for WIUPK, and
  4. it is an area that coincides with WIUP or WIUPK, and there is potential for continuity of coal seams or mineral deposit characteristics.

Before applying for the expansion of a WIUP or WIUPK, the holder of a Mining Business Permit must first obtain approval for the WIUP or WIUPK Expansion Work Plan from the Director General of Mineral and Coal, following a first-come-first-served application system.

Mining Business Permit holders who can apply for WIUP or WIUPK expansion must:

  • fulfill all obligations related to mining exploitation under the provisions of laws and regulations; and
  • fulfil all obligations related to good technical principles for mining under the provisions of the laws and regulations.

The Minister of Energy and Mineral Resources Decree No. 266.K/MB.01/MEM.B/2022 also clearly stipulates the requirements that must be met and completed by the applicant.

Furthermore, the Central and Regional Governments guarantee that there will be no change in the usage of space and areas in the Metal Mineral WIUP and Coal WIUP that have been determined. In the event that the Metal Mineral WIUP and Coal WIUP have been stipulated by the Minister, the usage of the potential natural resources contained therein shall be prioritized for mining business activities.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that have handled a lot of similar matters, with many experienced investment lawyers and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author: Dewi Susanti

Schinder Consultant London Ltd.


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