English | 中文 | 下载审德中文简介 

Hotline +62-812-8702-3281

Jul

21

No Royalty for Coal Process

Law No. 11 of 2020 concerning Job Creation (“Omnibus Law”) contains many new regulations regarding industrial, including the Implementation of the Energy and Mineral Resources Sector, regulated in the Government Regulation No. 25 of 2021 (“GR 25/2021”), which mostly regulates mineral mining activities and electricity. One of the new adjustments in the regulation is stipulated in article 3, which states: “Production operation Mining Business Permit, Production Operation Special Mining Business Permit and Special Mining Business Permit as a continuation of Operation Contract/Agreement holders for coal commodity which carries out the domestic Coal Value-Added Activities can be given treatment in the form of the imposition of royalties of 0% (zero percent),” whereas the previous regulation imposed a royalty fee ranging from 2-13.5% of selling price, depending on volume.

Paragraph (4) of article 3 GR 25/2021 states that the value, requirements and method of imposition of this provision will be regulated further in the regulation from the Minister of Energy and Mineral Resources. The Ministry regulation is currently being drafted and is expected to be completed soon. This new provision is applicable only on the volume of coal used in value-added activities. As stated in paragraph (2) of article 3 GR 25/2021, this regulation is being imposed in order to achieve energy independence and to meet the need for industrial raw materials. It would seem that GR 25/2021 is aimed at attracting more investors and to lighten the cost burden on the coal mining industry as the current royalty fee is not seen as competitive. It should also be noted that this provision is only applicable for operations with a production mining business permit, which means that the government is aiming for factories that build smelters or other processing factories in order to achieve energy independence and fill the need for industrial raw materials. This provision is also still a part of government’s effort to set up a conductive investment climate in order to increase the country’s EODB rank, encouraging more mining companies to set up their operations in Indonesia which is, in turn, also expected to help solve the joblessness problem.

Future regulations are predicted to support the development of investment and business activities, thus permits, among other things, are also expected to be issued and more easily obtained. Schinder Law Firm has had years of experience helping companies successfully set up their businesses in Indonesia and acquire their licenses. Should you wish to do so, feel free to drop us an email at info@schinderlawfirm.com.

Recent Posts

Let Us Be Your Guide.
Our thorough understanding of local culture
ensures that your business will be in compliance
with all laws and regulations and receive
a warm welcome in the community.

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

Our Service

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.
Read More