NewsNew Procedures for Mining, Business Licenses and Reporting

The Ministry of Energy and Mineral Resources has issued new regulations related to licensing of mineral and coal business activities. It is Ministerial Regulation No. 7 of 2020 on Procedures for Area Granting, Licensing, and Reporting on Mineral and Coal Mining Business Activities (“MR 7/2020”). The regulation principally sets out provisions to prepare and establish mining areas – along with their Mining Area Information Systems; to grant the mining area; to grant mineral and coal business licenses along with the obligations and prohibitions; and to submit the annual work plan & budget (Rencana Kerja dan Anggaran Biaya/ ‘RKAB’) and reports.

There are several main issues that are changed under MR 7/2020. Some of them are further provisions on how to convert local companies into foreign investment companies (‘Penanaman Modal Asing’). MR 7/2020 also widens the scope of authority of Ministers or Governors to reject the application to change shareholder composition. There are also several changes due to licensing and approval, such as change of platform and removal of some business licenses. It also introduces a new information system in order to submit the RKAB and the report.

The complete article, including the comparison table between the new regulation (MR 7/2020) and MR 11/2018 can be downloaded here ←


ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.

By combining commercial sensibilities and legal expertise, ADCO Law assists the clients to structure, organize and implement their business ventures and investments, including structuring, financing and securing investments as well as establishing new foreign companies in Indonesia. Should you have more queries regarding this matter, please do not hesitate to contact us.

Dendi Adisuryo
dendi.adisuryo@adcolaw.com

Liza Mashita
liza@adcolaw.com

@2020 ADCO Law. All rights reserved.
This publication has been prepared for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.

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