Apr

01

How Many Types of Mining Permits that Mining Owners Should Have in Indonesia?

To carry out mining activities in Indonesia, it is necessary to own permits in accordance with the latest government regulations and other applicable Laws in Indonesia. The stages of mining start from general investigation, exploration, feasibility study, construction, mining, processing, and refining, transportation and sales, and post-mining. These stages can be fully or partially carried out by one mining company, it depends on the type of mining permit the company owns. The following are the different types of mining permits in Indonesia:

  1. Mining Services Permit (“IUJP”)
    IUJP is a permit granted to carry out core mining business activities related to the stages and/or parts of mining business activities. The validity period for the IUJP is a maximum of five years and can be extended for a period of five years each time.
  2. Mining Exploration Permit ( “IUP Exploration” )
    A Mining Exploration Permit ( “IUP” ) is a business permit granted to carry out the General Investigation, Exploration and Feasibility Study stages. This permit will be obtained after the mining company has obtained a Mining Business Area Permit ( “WIUP” ) from the Region/Province/Governor (ESDM Office). The WIUP can be granted to business entities, cooperatives and individuals through auctions or applications in accordance to the type of commodity. The IUP Exploration is granted for a maximum of eight years for metallic minerals, seven years for coal and certain types of non-metallic minerals, and three years for non-metallic minerals and rocks.
  3. Special Exploration Mining Permit ( “IUPK Exploration” )
    IUPK Eksplorari is a business permit granted to carry out the General Investigation, Exploration, and Feasibility Study stages in the special mining business permit area. IUPK Exploration has the same validity period as the IUP Exploration, the only difference is that the IUPK Exploration permit is granted by the Minister of Energy and Mineral Resources.
  4. Production Operation Mining Permit ( “IUP OP” )
    IUP OP is a business permit granted after the completion of the IUP Exploration implementation to carry out activities that include construction, mining, processing and/or purification, transportation and sales. The validity period of the IUP OP is a maximum of 20 years and can be extended twice for 10 years each for certain types of metallic minerals, coal and non-metallic minerals, 10 years with the possibility of two five-year extensions for others non-metallic minerals, while a permit for rocks is for five years with the possibility of two five-year extensions.
  5. Special Production Operation Mining Permit ( “IUPK OP” )
    IUPK OP is a business permit granted after the completion of the IUPK Exploration implementation to carry out production operation activities. IUPK OP has the same validity period as the IUP OP, the only difference is that the IUPK OP permit is granted by the Minister of Energy and Mineral Resources.
  6. Special Production Operation Mining Permit for Processing and/or Purification ( “IUP OPK I” )
    IUP OPK I is a business permit granted to purchase, transport, process and purify and sell mineral or coal mining yield commodities. The IUP OPK I is granted for a maximum of 30 years and can be extended for a period of 20 years for each extension. The authority over IUP OPK I is handled by the Minister if:
    1. The mining commodities to be processed come from other provincial areas outside the location of the processing and/or refining facilities;
    2. The mining commodities to be processed come from abroad, and/or…
    3. If the location of the processing and refining facilities is in a cross-provincial area.
    The authority over IUP OPK I is handle by the Governor if:
      a) The mining commodity to be processed comes from the same province as the location of the processing and/or refining facility, and/or… b) If the location of the processing and/or refining facility is within one province.
  7. Special Production Operation Mining Permit for Transportation and Sales (“IUP OPK II”) IUP OPK II is a business license granted to companies to purchase, transport, and sell mineral or coal mining commodities. The validity period for IUP OPK II is a maximum of five years and can be extended for a period of five years each time. The authority over OPK IUP II is granted by the Minister if:
    1. The transportation and sales activities are carried out on provincial and/or cross-border lines.
    The authority of IUP OPK for transportation and sales is granted by the Governor if:
    1. The transportation and sales activities are carried out in one provincial area.

In addition to the mining permits described above, there are still two types of mining permits that existed before Law Number 4 of 2009, namely Contract of Work and Coal Mining Concession Work Agreement. Contract of Work, hereinafter abbreviated as KK, is an agreement between the Government of the Republic of Indonesia and a company incorporated as an Indonesian legal entity to carry out mineral mining business activities. Meanwhile, the Coal Mining Concession Work Agreement, hereinafter abbreviated as PKP2B, is an agreement between the Government of the Republic of Indonesia and a company incorporated as an Indonesian legal entity to conduct coal mining business activities. These two types of mining permits ceased to exist after 2009 once the Minerba Law was enacted.

Schinder Law Firm has had years of experience in these matters, supported by numerous number of civil and corporate lawyers in its team, making Schinder Law Firm one of the biggest corporate law firms in Jakarta. For more information regarding the registration of mining business permits, you may contact us at info@schinderlawfirm.com.

Author: Suryani Lin

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.