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May

18

The Investment Coordinating Board is Flooded with Complaints from Business Actors Over Revocation of Mineral Mining Business Permits in Indonesia

The government has officially revoked 1,118 Mining Business Permits (“IUP”) out of 2,078 recommendations for IUP revocation. The 1,118 IUP revocations include 102 IUP in nickel mining (161,254 Ha), 271 IUP in coal mining (914,136 Ha), 14 IUP in copper mining (51,563 Ha), 50 IUP in bauxite mining (311,294 Ha), 237 IUP in tin mining (374,031 Ha), 59 IUP in gold mining and 385 IUP for other minerals (365,296 Ha).

The head of the Land Use and Investment Management Task Force (Indonesian Investment Authority) stated that the government did not act arbitrarily when they decided to revoke thousands of IUPs. In accordance with the latest regulation in Indonesia, there are at least five criteria for the revocation of an IUP for Mineral and Coal that are not operating, namely:

  1. The company is declared bankrupt;
  2. The validity period of the permit has expired;
  3. Has a Borrow-to-Use Forest Area Permit (IPPKH) but did not submit a Work and Plan Budget (RKAB);
  4. Permits are complete but activities in the field are not being carried out / are not operating;
  5. The owner is unclear, and the permit is only used as collateral for the bank and is not realized.

Subsequent to the enlisted investment law in Indonesia, business actors in the mining sector face a new fount of adversity deriving from business permits. However, the government has opened opportunities for business actors whose IUPs are revoked to clarify and file objections. The head of the Land Use and Investment Management Task Force admitted that of the 1,118 IUPs that were revoked, 227 companies had submitted objections, and 160 companies had been invited to clarify. Of the 160 companies, 144 companies have complied with the invitation to clarify. The results of the objections that have been clarified will be discussed in a plenary meeting later.

The steps for submitting objections to the revocation of IUPs are:

  1. Business actors submit an objection letter to the Minister of Investment/Head of the Investment Coordinating Board (Minister of Investment/Head of BKPM) attn. Deputy for Investment Implementation Control;
  2. The Deputy for Investment Implementation Control will send an invitation letter to the business actors to clarify the Revocation Decree of IUP; and
  3. Business actors are required to prepare supporting documents, evidence of fulfillment of obligations, and justifications related to business activities for IUPs that have been revoked.

If you are one of the companies that experienced similar losses, feel free to contact us at info@schinderlawfirm.com for further consultation. Schinder Law Firm is one of many corporate law firms in Indonesia that have handled a lot of mining cases, with many experienced and professional civil lawyers and dispute lawyers in its arsenal, making it one of the top consulting firms in Indonesia.

Author: Suryani Lin

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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
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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.
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