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Feb

08

Mandatory Annual Mining Activity Report in Indonesia

Each and every company is required to tally up their business activity annually for the purpose conveying data and information about their company's activities. Article 178 of Indonesian Government Regulation No. 96 of 2021 regarding Implementation of Mineral and Coal Mining Activities (“GR 96/2021”) states that the holder of a Mining Permit or Izin Usaha Pertambangan (IUP), Exploration Special Mining Permit or Izin Usaha Pertambangan Khusus (IUPK), Public Mining Permit or Izin Pertambangan Rakyat (IPR), Rock Mining Permit or Surat Izin Penambangan Batuan (SIPB), Transportation and Sales Permit, Mining Services Business License or Izin Usaha Jasa Pertambangan (IUJP) or Mining Sales Permit are required to arrange and submit reports on the implementation of mining business activities carried out to the Minister. The reports are stipulated under Article 178 of GR 96/2021 and consist of at least three reports, namely periodic reports, final report and a special report. These reports can be submitted electronically or in writing.

Aside from the annual report, Article 177 of GR 96/2021 explains that the holder of IUP and IUPK are required to establish and submit a Work Plan and Budget Report (RKAB) as a guide to implementing mining business activities to the Minister. This annual RKAB must be approved by the Minister. The obligation to prepare the Annual RKAB is explained in Article 62 of Minister of Energy and Mineral Resources Regulation No. 7 of 2020 concerning Procedures for Granting Territories, Licensing and Reporting on Mineral and Coal Mining Business Activities with regards to the law in Indonesia (“MoEMR 7/2020”). Article 62 Paragraph (1) of MoEMR 7/2020 stipulate that the holder of IUP and IUPK are obligated to make periodic written reports on the Annual RKAB as well as the implementation of mining business activities carried out.

Mining companies that do not provide their annual reports, including periodic reports, final reports and special reports shall receive administrative sanctions as stipulated under Article 185 GR 96/2021 while mining companies that do not report Annual RKAB will be subject to administrative sanctions in the form of written warnings, temporary suspension of part of all exploration activities or production operations up to the revocation of IUP, IUPK, IPR, SIPB, Transportation and Sales Permit, IUJP and Mining Sales Permit as stipulated under Article 95 of MoEMR 7/2020.

If you, a prospective client, have further inquiries in relation to the topic explained above, Schinder Law Firm is one of many corporate law firms that has handled a lot of similar matters, with many experienced and professional civil lawyers and dispute 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: Suryani Lim