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LAW OF THE REPUBLIC OF INDONESIA NUMBER 4 OF YEAR 2009                                  CONCERNING                        ...
d. that pursuant to considerations as referred to in item 1, item b,                        and item c, a Law concerning M...
4. Mineral Mining shall be mining of a collection of minerals in form of ore or rock,   other than geothermal, petroleum a...
13. Production Operation Special Mining Business Permit (IUPK Operasi Produksi)    shall be a business permit granted afte...
21. Transportation shall be a mining business activity to move minerals and /or coal     from the mine site and or process...
30. Mining Business Area, hereinafter Mining Business Area (Wilayah Usaha    Pertambangan /WUP) shall be a part of the Min...
37. The regional government shall be the governor, bupati (regent), or mayor, and     local apparatus as components of adm...
e. to increase the income of local, regional community, and the state, and to create job  opportunities for optimum benefi...
(5) Further provisions concerning prioritizing of mineral and /or coal for domestic  interest as referred to in clause (1)...
h. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,     settlement of peoples conflict, and supe...
t.    development and improvement of added value of mining business activities; andu.    improvement of the capability of ...
g. devise of mineral and coal resource balance at provincial region/ area level;   h. development and improvement of added...
conflict, and supervision of mining business within the area of the regency    (kabupaten) /municipality and /or ocean are...
l.   improvement of the capability of the apparatus of the regency (kabupaten)        /municipality government in administ...
Article 12Further provisions concerning limit, size, and mechanism of stipulation of WP asreferred to in Article 9, Articl...
One (Wilayah Usaha Pertambangan Khusus /WUPK) shall consist of 1 (one) ore moreSpecial   Mining      Business   Permit    ...
Peoples Mining Area (Wilayah                               Pertambangan Rakyat /WPR)                                      ...
In stipulation of a Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR) asreferred to in Article 21, the bupati (regent...
area reserved for specific commodity and conservation area in the context of   maintaining ecosystem and environment balan...
(1) The Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) as   referred to in Article 24 clause (4) t...
c. environment protection bearing capacity;d. optimization of mineral and /or coal resource; ande. population density leve...
a. Mining Business Permit (Izin Usaha Pertambangan/IUP);b. Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR); ...
province after a recommendation from the respective bupati (regent) /mayor   conforming to the provisions of laws and legi...
j.   plan for development and empowerment of the community in the vicinity of        the mining area;   k. taxation;   l. ...
n.      plan for development and empowerment of the community in the vicinity of              the mining area;      o.    ...
(4)    The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred       to in clause (2) may state h...
(4) The Exploration Mining Business Permit (IUP Eksplorasi) for coal mineral mining    may be granted for a period of a ma...
(2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)   may be granted to a business entity, c...
a. the bupati (regent)/mayor if the location of mining, the location of processing and   refining, and seaport is within a...
Metal Mineral Mining                                      Article 51The Mining Business Permit Area (Wilayah Izin Usaha Pe...
Article 54The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for nonmetal mineral shall be granted to...
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for rockshall be granted to a business entity, coo...
Article 61(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for coal shall be   granted a Mining Busin...
(Wilayah Izin Usaha Pertambangan /WIUP) as referred to in Article 16 and grant theExploration Mining Business Permit (IUP ...
(2) The bupati (regent) /mayor may delegate the authority of execution of grant of     Peoples Mining Business Permit (Izi...
a. execute mining activities no later than 3 (three) months after the Peoples Mining   Business Permit (Izin Pertambangan ...
a. work safety and health;   b. management of the environment;   c. post mining.(3) To execute technical safeguarding as r...
(4) The holder of the Special Mining Business Permit (Izin Usaha Pertambangan   Khusus/IUPK) who intends to exploit other ...
(3) The state owned business entity and regional owned business entity as referred to   in paragraph (2) shall be given pr...
(1) Every holder of a Exploration Special Mining Business Permit (IUPK Eksplorasi) is     guaranteed to obtain a Productio...
m. fixed fee and exploration fee; andn.    AMDAL (Environment Impact Statement).                                          ...
p. fixed fee and production fee and state /regional income portion, comprises of profit   sharing of net profit since prod...
(3) The temporary permit as referred to in clause (2) shall be granted by the Minister.                                   ...
f. The Exploration Special Mining Business Permit (IUPK Eksplorasi) for coal mining   may be granted for a period of a max...
(2) Further terms pertaining to the administrative, technical, environment, and   financial requirements as referred to in...
The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) and SpecialMining Business Permit (Izin Usaha Pertamb...
b. provided that it is not contradictive to the provisions of laws and legislations.                                      ...
d. the effort of conservation of mineral and coal resources;e. management of mining tailing of a mining business activity ...
Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan   Khusus/IUPK) and holder of right over the l...
(1) The holder of Production Operation Mining Business Permit (IUP Operasi Produksi   /IUPOP) and Production Operation Spe...
clause (1) is prohibited from conducting processing and refining of mining result   from anyone who is not a holder of Min...
(Izin Usaha Pertambangan Khusus/IUPK) shall involve local entrepreneurs in the regionin accordance with the provisions of ...
Article 112(1) After 5 (five) years of production, a business entity holding a Mining Business   Permit (Izin Usaha Pertam...
Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan   Khusus/IUPK).(3) The request for temporary...
Article 115(1) If temporary suspension of the mining business activity is granted due to force   majeure as referred to in...
The Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special MiningBusiness Permit (Izin Usaha Pertambangan Khusus...
the   obligations   stipulated    in    the   Mining   Business    Permit    (Izin   Usaha   Pertambangan/IUP) or Special ...
(2) The obligations of the holder of the Mining Business Permit (Izin Usaha   Pertambangan/IUP) or Special Mining Business...
CHAPTER XVI                               MINING SERVICE BUSINESS                                       Article 124(1) The...
(1) In the event the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or   Special Mining Business Permit (I...
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
Uu minerba 4 2009
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Transcript of "Uu minerba 4 2009"

  1. 1. LAW OF THE REPUBLIC OF INDONESIA NUMBER 4 OF YEAR 2009 CONCERNING MINERAL AND COAL MINING THE PRESIDENT OF THE REPUBLIC OF INDONESIA WITH THE BLESSING OF GOD THE ALMIGHTYConsidering: a. that mineral and coal contained in the jurisdiction of mining of Indonesia constitutes non-renewable natural resources as bestowed by God the Almighty which plays an important role in satisfying life necessities of many people, therefore management thereof must be controlled by the State to give real added value for national economy in the efforts to reach a just welfare and prosperity of the people. b. that the business activities of mineral and coal mining are mining business activities other than geothermal, petroleum and natural gas and ground water play a significant role in providing real added value to national economy growth and regional development in a sustainable manner; c. that by considering national and international progress, Law Number 11 of Year 1967 concerning Main Provisions in Mining is not suitable any longer thus an amendment to laws in mineral and coal mining is required which is able to manage and exploit mineral and coal potential independently, reliably, transparently, competitively, efficiently, and environmentally aware, to guarantee a sustainable national development. 1
  2. 2. d. that pursuant to considerations as referred to in item 1, item b, and item c, a Law concerning Mineral and Coal Mining needs to be created;In view of: Article 5 clause (1), Article 20 and Article 33 clause (2) and clause (3) of the Constitution of the Republic of Indonesia of Year 1945; With Joint Approval of THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA and THE PRESIDENT OF THE REPUBLIC OF INDONESIA HEREBY RESOLVESTo enact: LAW CONCERNING MINERAL AND COAL MINING CHAPTER I GENERAL TERMS Article 1As defined herein:1. Mining shall be part or all phases of activity in the context of research, management, and exploitation of mineral or coal covering general survey, exploration, feasibility study, construction, mining, processing and refining, transportation and sales, and post-mining activities.2. Mineral shall be inorganic compound formed in nature, which has specific physical and chemical properties and arranged crystal structure or combination thereof forming rock, in loose or combined form.3. Coal is a sediment of carbon organic compound formed naturally from remains of plants. 2
  3. 3. 4. Mineral Mining shall be mining of a collection of minerals in form of ore or rock, other than geothermal, petroleum and natural gas, and ground water.5. Coal Mining shall be mining of carbon sediment located in the earth, including solid bitumen, turf, and asphalt rock.6. Mining business shall the activities in the context of research, management, and exploitation of mineral or coal covering general survey, exploration, feasibility study, construction, mining, processing and refining, transportation and sales, and post-mining activities.7. Mining Business Permit, hereinafter the Mining Business Permit (Izin Usaha Pertambangan/IUP) shall be the permit to run mining business.8. Exploration Mining Business Permit (IUP Eksplorasi) shall be a business permit granted to execute the activity of genera survey, exploration, and feasibility study.9. Production Operation Mining Business Permit (IUP Operasi Produksi) shall be a business permit granted after completion of Exploration Mining Business Permit (IUP Eksplorasi) to execute the phase of production operation activities. *10. Peoples Mining Permit, hereinafter Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR), shall be the permit to conduct mining business within peoples mining area under limited area and investment size.11. Special Mining Business Permit, hereinafter Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be the permit to run mining business in the special mining business permit area.12. Exploration Special Mining Business Permit (IUPK Eksplorasi) shall be a business permit granted to execute the phase of activity of general survey, exploration, and feasibility study within the special mining area business permit. 3
  4. 4. 13. Production Operation Special Mining Business Permit (IUPK Operasi Produksi) shall be a business permit granted after completion of execution of Exploration Special Mining Business Permit (IUPK Eksplorasi) to to execute the phase of production operation activities in the special mining business permit area.14. General Survey shall be the phase of activities of mining to find regional geology condition and indication of presence of mineralization.15. Exploration shall be the phase of mining business activity to find detailed and precise information about location, shape, dimension, distribution, quality and measured of materials, and information concerning social condition and the environment.16. Feasibility study shall be the phase of mining business activities to find detailed information about all related aspects to find economy and technical feasibility of mining business, including analysis about environment impact and post-mining planning.17. Production Operation shall be the phase of mining business activities covering construction, mining, processing, refining, including transportation and sales, and environment impact control facilities conforming to the result of feasibility study.18. Construction shall be mining business activities to execute development of all production operation facilities, including control of environment impact.19. Mining shall be part of mining business activities to produce mineral and /or coal and their trace minerals.20. Processing and refining shall be mining business activities to improve the quality of mineral and /or coal and to use and gain trace minerals. 4
  5. 5. 21. Transportation shall be a mining business activity to move minerals and /or coal from the mine site and or processing and refining site to delivery site.22. Sales shall be a mining business activity to sell the product of mineral or coal mining.23. Business Entity shall be every legal entity running business in mining established based on Indonesian law and is domiciled within the territory of the Unitary State of the Republic of Indonesia.24. Mining Service shall be a support service relate do the mining business activities.25. Environment Impact Statement (AMDAL), hereinafter AMDAL, shall be a study about major and significant impact of a business and /or activity planned on an environment required for decision making process about undertaking of a business and /or activity.26. Reclamation shall be an activity conducted during the phase of mining business to arrange, recover, and fix environment and ecosystem quality to allow them to function again according to their purpose.27. Post mining activity, hereinafter post mining, shall be a planned, systematic, and sustainable activity after the end of part or all of mining business activities to recover natural environment and social functions according to local conditions at all mining areas.28. Community Empowerment shall be an effort to improve the peoples capability, both individually or collectively, to improve their life quality.29. Mining Area, herein after Mining Area (Wilayah Pertambangan /WP) shall be areas which have mineral and /or coal potential which are not bound by government administrative boundary which constitutes a part of national space planning. 5
  6. 6. 30. Mining Business Area, hereinafter Mining Business Area (Wilayah Usaha Pertambangan /WUP) shall be a part of the Mining Area (Wilayah Pertambangan /WP) which has obtained availability of data, potential, and /or geology information.31. Mining Business Permit Area, hereinafter Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) shall be areas granted for the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP).32. Peoples Mining Area, hereinafter Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR) shall be part of the Mining Area (Wilayah Pertambangan /WP) where peoples mining business activities take place.33. State Reserve Area, hereinafter State Reserve Area (Wilayah Pencadangan Negara /WPN) shall be part of Mining Area (Wilayah Pertambangan /WP) reserved for national strategic interest.34. Special Mining Business Area, hereinafter Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) shall be part of Mining Area (Wilayah Pertambangan /WP) which can be exploited.35. Special Mining Business Permit Area, hereinafter Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) shall be areas granted for the holder of Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).36. The Central Government, hereinafter the Government, shall be the President of the Republic of Indonesia who holds the power of Governance of the State of the Republic of Indonesia as referred to in the Constitution of the State of the Republic of Indonesia of Year 1945. 6
  7. 7. 37. The regional government shall be the governor, bupati (regent), or mayor, and local apparatus as components of administration of regional governance.38. The minister shall be the minister who administers government affairs in the sector of mineral and coal mining. CHAPTER II PRINCIPLE AND OBJECTIVE Article 2Mineral and /oar coal mining shall be managed under the principle of:a. benefit, fairness, and balance;b. partiality to national interest;c. participation, transparency, and accountability;d. sustainability and environmentally-aware. Article 3In the context of support of sustainable national development, the objectives ofmanagement of mineral an coal shall be:a. to guarantee effectiveness of execution and control of mining business activities which are effective, productive, and competitive;b. to guarantee the benefit of mineral and coal mining in a sustainable and environmentally aware manner;c. . to guarantee availability of mineral and coal as raw materials and /or source of energy for domestic needs;d. to support and develop national capability to be more competitive at national, regional, and international levels; 7
  8. 8. e. to increase the income of local, regional community, and the state, and to create job opportunities for optimum benefits of the people welfare; andf. to guarantee legal certainty in administering of mineral and coal mining business activities. CHAPTER III POSSESSION OF MINERAL AND COAL MINING Article 4(1) Mineral and coal as non-renewable natural resource is a national asset possessed by the state for optimum benefit of the peoples welfare.(2) Possession of mineral and coal by the state as referred to in clause (1) shall be under administering by the Government and /or regional government. Article 5(1) For national interest, the Government, after a consult with the House of Representatives of the Republic of Indonesia, may stipulate a policy of prioritizing mineral and /or coal for domestic interest.(2) The national interest as referred to in clause (1) can be made by control of production and export.(3) In running the control as referred to in clause (2) the Government holds the authority to define production amount of each commodity per year for each province.(4) The regional government shall comply with the defined amount stipulated by the Government as referred to in clause (3). 8
  9. 9. (5) Further provisions concerning prioritizing of mineral and /or coal for domestic interest as referred to in clause (1) and control of production and export as referred to in clause (2) and clause (3) shall be regulated in a government regulation. CHAPTER IV AUTHORITY IN MANAGEMENT OF MINERAL AND COAL MINING Article 6(1) The Governments Authority in management of mineral and coal mining among else shall be: a. stipulation of national policy; c. creation of laws; c. stipulation of national standard, guidance, and criteria; d. stipulation of national mineral and coal mining permit system; e. stipulation of Mining Area (Wilayah Pertambangan /WP) which is made after a coordination with the local government and consult with the House of Representatives of the Republic of Indonesia; f. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance, settlement of peoples conflict, and supervision of mining business which location is crossing province and /or ocean areas exceeding 12 (twelve) miles from the shore line; g. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance, settlement of peoples conflict, and supervision of mining business which mining location is within province and /or ocean areas exceeding 12 (twelve) miles from the shore line; 9
  10. 10. h. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance, settlement of peoples conflict, and supervision of production operation mining business which direct environment impact is crossing province and /or ocean areas exceeding 12 (twelve) miles from the shore line;i. grant of Exploration Special Mining Business Permit (IUPK Eksplorasi), and Production Operation Special Mining Business Permit (IUPK Operasi Produksi);j. evaluation of Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) issued by the regional government which has caused environment damage and did not apply good mining rules;k. stipulation of production, marketing, utilization, and conservation policies;l. stipulation of collaboration, partnership, and peoples empowerment policies;m. formulation and stipulation of non-tax state income from mineral and coal mining business revenue;n. assistance and supervision of administering of mineral and coal mining management run by the regional government;o. assistance and supervision of formulation of regional regulation in mining;p. inventory, investigation, and research and exploration in the context to acquire data and information on mineral and coal as the materials to devise (Wilayah Usaha Pertambangan Khusus /WUPK) and State Reserve Area (Wilayah Pencadangan Negara /WPN);q. management of geological information, mineral resource and coal potential information, and mining information at national level;r. assistance and supervision on post mining land reclamation;s. stipulation of national level mineral and coal resource balance; 10
  11. 11. t. development and improvement of added value of mining business activities; andu. improvement of the capability of the apparatus of the Government, provincial government, and regency (kabupaten) /municipality government in administering of mining business management. Article 7(1) The regional governments authority in management of mineral and coal mining among else shall be: a. creation of regional laws; b. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance, settlement of peoples conflict, and supervision of mining business which location is crossing kabupaten (regency)/municipality and /or ocean areas in 4 (four) miles to 12 (twelve) miles; c. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance, settlement of peoples conflict, and supervision of production operation mining business which activity is crossing kabupaten (regency)/municipality and /or ocean areas in 4 (four) miles to 12 (twelve) miles; d. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance, settlement of peoples conflict, and supervision of mining business which direct environment impact is crossing kabupaten (regency)/municipality and /or ocean areas in 4 (four) miles to 12 (twelve) miles e. inventory, investigation, and research and exploration in the context to acquire data and information on mineral and coal conforming to its authority; f. management of geological information, mineral and coal resource potential information, and mining information at regional /local level; 11
  12. 12. g. devise of mineral and coal resource balance at provincial region/ area level; h. development and improvement of added value of mining business activities in the province; i. development and improvement of peoples participation in the mining business by taking into account preservation of the environment; j. coordinating the permitting and supervision of utilization of explosives in mining area in accordance with their authority; k. delivering information concerning the result of inventory, general survey, and research and exploration to the Minister and regent (bupati) /mayor; l. delivering information concerning the result of production, domestic and export sales to the Minister and regent (bupati) /mayor; m. assistance and supervision on post mining land reclamation; n improvement of the capability of the apparatus of the provincial government and regency (kabupaten) /municipality government in administering of mining business management.(2) The provincial governments authority as referred to in clause (1) shall be exercised pursuant to the provisions of laws and legislations. Article 8(1) The authority of the regency /municipality government in management of mineral and coal mining among else shall be: a. creation of regional laws; b. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) assistance, settlement of peoples 12
  13. 13. conflict, and supervision of mining business within the area of the regency (kabupaten) /municipality and /or ocean area within 4 (four) miles;c. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) assistance, settlement of peoples conflict, and supervision of production operation mining business which activity is located within the territory of the regency (kabupaten) /municipality and /or ocean area within 4 (four) miles;d. inventory, investigation and research, and exploration in the context to acquire data and information on mineral and coal;e. management of geological information, mineral and coal resource potential information, and mining information at kabupaten (regency) /municipality level;f. a devise of mineral and coal resource balance in the kabupaten (regency) /municipality level;g. development and empowerment of the local people in mining business by taking into account preservation of the environment;h. development and improvement of added value and benefit of mining business activities optimally;i. delivery of information resulting from inventory, general survey, and research, and exploration and exploitation to the Minister and the governor;j delivering information concerning the result of production, domestic and export sales to the Minister and the governor;k. assistance and supervision on post mining land reclamation; and 13
  14. 14. l. improvement of the capability of the apparatus of the regency (kabupaten) /municipality government in administering of mining business management.(2) The authority of the kabupaten (regency) /municipality government as referred to in clause (1) shall be exercised pursuant to the provisions of laws and legislations. CHAPTER V MINING AREA Section One General Article 9(1) The Mining Area (Wilayah Pertambangan /WP) as a part of national space planning shall become a base for stipulation of mining activities.(2) The Mining Area (Wilayah Pertambangan /WP) as referred to in clause (1) shall be stipulated by the Government after a coordination with the regional government and a consult with the House of Representatives of the Republic of Indonesia; Article 10Stipulation of Mining Area (Wilayah Pertambangan /WP) as referred to in clause Article(2) shall be executed:a. in a transparent, participative, and responsible manner;b. in an integrated manner by considering opinions from related government institutions, the people, and by considering the aspects of ecology, economy, and social culture, and has environment insight; andc. by considering aspiration of the region. Article 11The government and the regional government shall conduct survey and research ofmining in the context of preparation of Mining Area (Wilayah Pertambangan /WP). 14
  15. 15. Article 12Further provisions concerning limit, size, and mechanism of stipulation of WP asreferred to in Article 9, Article 10, and Article 11 shall be regulated under agovernment regulation. Article 13Mining Area (Wilayah Pertambangan /WP) comprises of:a. (Wilayah Usaha Pertambangan Khusus /WUPK);b. Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR); andc. State Reserve Area (Wilayah Pencadangan Negara /WPN). Section Two Mining Business Area Article 14(1) Stipulation of a (Wilayah Usaha Pertambangan Khusus /WUPK) shall be made by the Government after a consult with the regional government and submitted in writing to the House of Representatives of the Republic of Indonesia.(2) The coordination as referred to in clause (1) shall be conducted by the respective regional government conforming to data and information the Government and the local government have in hand. Article 15The Government may delegate part of its authority in stipulation of a Mining Area(Wilayah Pertambangan /WP) as referred to in Article 14 clause (1) to the provincialgovernment in accordance with the provisions of laws and legislations. Article 16 15
  16. 16. One (Wilayah Usaha Pertambangan Khusus /WUPK) shall consist of 1 (one) ore moreSpecial Mining Business Permit Areas (Wilayah Izin Usaha PertambanganKhusus/WIUPK) which location is crossing territory of the province, crossing territoryof the kabupaten (regency) /municipality, and /or within 1 (one) kabupaten (regency)/municipality area. Article 17Size and limit of Special Mining Business Permit Area (Wilayah Izin Usaha PertambanganKhusus/WIUPK) for metal and coal materials shall be stipulated by the Governmentunder coordination with the regional government based on criteria the Governmentpossesses. Article 18The criteria to stipulate 1 (one) or more Special Mining Business Permit Areas (WilayahIzin Usaha Pertambangan Khusus/WIUPK) in 1 (one) Mining Business Area (WilayahUsaha Pertambangan /WUP) shall be as follows:a. geographical location;b. conservation rules;c. environment protection bearing capacity;d. optimization of mineral and /or coal resource; ande. population density level. Article 19Further provisions concerning procedure of stipulation of boundary and size of aMining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) as referred to inArticle 17 shall be regulated under a government regulation. Section Three 16
  17. 17. Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR) Article 20Peoples mining activities shall be executed in a Peoples Mining Area (WilayahPertambangan Rakyat /WPR). Article 21The Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR) as referred to in Article20 shall be stipulated by the bupati (regent) /mayor after a consult with the LegislativeCouncil of the kabupaten (regency) /municipality (Dewan Perwakilan Rakyat DaerahKabupaten /Kota). Article 22The criteria for stipulation of a Peoples Mining Area (Wilayah Pertambangan Rakyat/WPR) shall be as follows:a. it has a secondary mineral reserve located in a river and /between river banks;b. it has metal or coal primary reserve at the depth of a maximum of 25 (twenty-five) meters;c. sedimentation of terrace, flood plain, and sedimentation of ancient river;d. maximum Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR) size shall be 25 (twenty-five) hectares;e. stating type of commodity to mine; and /orf. it is an area or location of peoples mine activity which has been exploited for at least 15 (fifteen) years. Article 23 17
  18. 18. In stipulation of a Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR) asreferred to in Article 21, the bupati (regent) /mayor shall make an announcementconcerning the Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR) plan to thepublic openly. Article 24The location or area of Peoples Mining Area (Wilayah Pertambangan Rakyat /WPR)which has been exploited but not yet stipulated as a Peoples Mining Area (WilayahPertambangan Rakyat /WPR) shall be given priority to be stipulated as a Peoples MiningArea (Wilayah Pertambangan Rakyat /WPR). Article 25Further provisions concerning guidance, procedure, and stipulation of a PeoplesMining Area (Wilayah Pertambangan Rakyat /WPR) as referred to in Article 21 andArticle 23 shall be regulated under a government regulation.Further provisions concerning criteria and mechanism of stipulation of a PeoplesMining Area (Wilayah Pertambangan Rakyat /WPR) as referred to in Article 22 andArticle 23 shall be regulated under a regulation of the kabupaten (regency)/municipality. Section Four State Reserve Area Article 27(1) For national strategic interest, the Government, with approval of the House of Representatives of the Republic of Indonesia and by considering local aspiration and stipulating the State Reserve Area (Wilayah Pencadangan Negara /WPN) as an 18
  19. 19. area reserved for specific commodity and conservation area in the context of maintaining ecosystem and environment balance.(2) Part area size of a State Reserve Area (Wilayah Pencadangan Negara /WPN) stipulated for a specific commodity as referred to in clause (1) may be exploited after an approval from the House of the Representatives of the Republic of Indonesia.(3) A time limit for the State Reserve Area (Wilayah Pencadangan Negara /WPN) stipulated for conservation as referred to in clause (1) is stipulated with an approval from the House of the Representatives of the Republic of Indonesia.(4) The area which will be exploited as referred to in clause (2) and clause (3) will change status into a Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK). Article 28The change of status of a State Reserve Area (Wilayah Pencadangan Negara /WPN) asreferred to in Article 27 clause (2), clause (3), and clause (4) into a Special MiningBusiness Area (Wilayah Usaha Pertambangan Khusus /WUPK) may be made byconsidering:a. supply of domestic industry and energy raw materials;b. source of national foreign exchange;c. regional condition based on limitation of infrastructure and facilities;d. has a potential to develop as an economy growth center;e. environment bearing capacity; and /orf. utilization of high technology and big capital investment. Article 29 19
  20. 20. (1) The Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) as referred to in Article 24 clause (4) to exploit shall be stipulated by the Government after a coordination with the regional government.(2) Execution of mining business activities in the Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) as referred to in clause (1) shall be conducted in form of a Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK). Article 30One Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) shallconsist of 1 (one) ore more Special Mining Business Permit Areas (Wilayah Izin UsahaPertambangan Khusus/WIUPK) which location is crossing territory of the province,crossing territory of the kabupaten (regency) /municipality, and /or within 1 (one)kabupaten (regency) /municipality area. Article 31Size and limit of the Special Mining Business Permit Area (Wilayah Izin UsahaPertambangan Khusus/WIUPK) for metal and coal materials shall be stipulated by theGovernment under coordination with the regional government based on criteria andinformation the Government possesses. Article 32The criteria to stipulate 1 (one) or more Special Mining Business Permit Areas (WilayahIzin Usaha Pertambangan Khusus/WIUPK) in 1 (one) Special Mining Business Area(Wilayah Usaha Pertambangan Khusus /WUPK) shall be as follows:a. geographical location;b. conservation rules; 20
  21. 21. c. environment protection bearing capacity;d. optimization of mineral and /or coal resource; ande. population density level. Article 33Further provisions concerning procedure of stipulation of size and bondary of a SpecialMining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) asreferred to in Article 31 and Article 32 shall be regulated under a governmentregulation. CHAPTER VI MINING BUSINESS Article 34(1) Mining business is categorized into: a. mineral mining; and b. coal mining(2) The mineral mining as referred to in clause (1) item a is categorized into: a. radioactive mineral mining; b. metal mineral mining; c. non-metal mineral mining; and d. rock mining.(3) Further provisions concerning stipulation of a mine commodity into a mineral mining group as referred to in clause (2) shall be regulated under a government regulation. Article 35The mining business as referred to in Article 34 shall be executed in form of: 21
  22. 22. a. Mining Business Permit (Izin Usaha Pertambangan/IUP);b. Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR); danc. Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK). CHAPTER VII MINING BUSINESS PERMIT (IZIN USAHA PERTAMBANGAN/IUP) Section One General Article 36(1) Mining Business Permit (Izin Usaha Pertambangan/IUP) comprises of two phases: a. Exploration Mining Business Permit (IUP Eksplorasi) covering the activity of general survey, exploration, and feasibility study; b. Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) covering the activities of construction, mining, processing, and refining, and transportation and sales.(2) The holder of the Exploration Mining Business Permit (IUP Eksplorasi) and Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) may run some of or all activities as referred to in clause (1). Article 37The Mining Business Permit (Izin Usaha Pertambangan/IUP) is granted by:a. the bupati /mayor if the Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) is located within a territory of a kabupaten (regency) /municipality;b. the governor, if the Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) is located crossing the territories of the kabupaten /municipality in 1 (one) 22
  23. 23. province after a recommendation from the respective bupati (regent) /mayor conforming to the provisions of laws and legislations; andc. b. the Minister, if the Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) is located crossing the territories of the province after a recommendation from the respective governor and bupati (regent) /mayor conforming to the provisions of laws and legislations. Article 38The Mining Business Permit (Izin Usaha Pertambangan/IUP) can be awarded to:a. a business entity;b. a cooperative; andc. an individual. Article 39(1) The Exploration Mining Business Permit (IUP Eksplorasi) as referred to in Article 36 clause (1) item a shall include at least: a. name of the company; b. location and size of area; c. general spatial planning; d. surety bond; e. investment capital; f. time extension of an activity phase; g. rights and obligations of the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP); h. duration of validity of activity phase; j. type of business awarded; 23
  24. 24. j. plan for development and empowerment of the community in the vicinity of the mining area; k. taxation; l. settlement of dispute; m. fixed fee and exploration fee; and n. AMDAL (Environment Impact Statement).(2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) as referred to in Article 36 clause (1) item a shall include at least: a. name of the company; b. size of area; c. location of mining; d. location of processing and refining; e. transportation and sales; f. investment capital; g. duration of validity of the Mining Business Permit (Izin Usaha Pertambangan/IUP); h. duration of activity phase; i. settlement of land issues; j. the environment including post mining reclamation; k. reclamation and post mining bond fund; l. Extension of the Mining Business Permit (Izin Usaha Pertambangan/IUP); m. rights and obligations of the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP); 24
  25. 25. n. plan for development and empowerment of the community in the vicinity of the mining area; o. taxation; p. non tax state income comprises of fixed fee and production fee; q. settlement of dispute; r. work safety and health; s. conservation of mineral or coal; t. utilization of domestic goods and services; u. application of good economy and mining engineering rules; v. improvement of Indonesian workers; w. management of mineral or coal data; and x. mastery, development, and implementation of mineral or coal mining technology; Article 40(1) The Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in Article 36 clause (1) shall be granted for 1 (one) type of mineral or coal.(2) The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in clause (1) who discovers other minerals in the managed Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) shall be given priority for exploitation thereof.(3) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) who intends to exploit other minerals as referred to in clause (2) shall submit a new Mining Business Permit (Izin Usaha Pertambangan/IUP) proposal to the Minister, the governor, the bupati (regent) /mayor in accordance with their authority. 25
  26. 26. (4) The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in clause (2) may state his /her unwillingness to exploit the other minerals discovered.(5) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) who is not willing to exploit the other minerals discovered as referred to in clause (4), shall safeguard the other mineral to prevent utilization by other party.(6) The Mining Business Permit (Izin Usaha Pertambangan/IUP) for the other mineral as referred to in clause (4) and (5) may be granted to another party by the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.The Mining Business Permit (Izin Usaha Pertambangan/IUP) shall not be used forpurpose other than intended in the grant of the Mining Business Permit (Izin UsahaPertambangan/IUP). Section Two Exploration Mining Business Permit (IUP Eksplorasi) Article 42(1) The Exploration Mining Business Permit (IUP Eksplorasi) for metal mineral mining may be granted for a period of a maximum of 8 (eight) years.(2) The Exploration Mining Business Permit (IUP Eksplorasi) for non metal mineral mining may be granted for a maximum period of 3 (three0 Years and specific non metal mineral may be granted for a maximum period of 7 (seven) years.(3) The Exploration Mining Business Permit (IUP Eksplorasi) for rock mineral mining may be granted for a period of a maximum of 3 (three) years. 26
  27. 27. (4) The Exploration Mining Business Permit (IUP Eksplorasi) for coal mineral mining may be granted for a period of a maximum of 7 (seven) years. Article 43(1) In case of the activity of exploration and the activity of feasibility study, the holder of the Exploration Mining Business Permit (IUP Eksplorasi) who obtains excavated mineral or coal shall submit a report to the grantor of the Mining Business Permit (Izin Usaha Pertambangan/IUP).(2) The holder of the Exploration Mining Business Permit (IUP Eksplorasi) intending to sell the mineral or coal as referred to in clause (1) shall propose for a temporary permit to conduct transportation and sales. Article 44The temporary permit as referred to in Article 43 clause (2) shall be granted by theMinister, the governor, and the bupati (regent) /mayor in accordance with theirauthority. Article 45To the excavated mineral or coal as referred to in Article 43, a production fee may beimposed. Section Three Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) Article 46(1) Every holder of a Exploration Mining Business Permit (IUP Eksplorasi) is guaranteed to obtain a Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) as a continuance of his /her mining business activity. 27
  28. 28. (2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) may be granted to a business entity, cooperative, or an individual upon the result of bid of a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for metal or coal mineral which have obtained data of the result of feasibility study. Article 47(1) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) for metal mineral mining may be granted for a maximum period of 20 (twenty) years and may be extended twice, respectively for 10 (ten) years.(2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) for non metal mineral mining may be granted for a maximum period of 10 (ten) years and may be extended twice, respectively for 5 (five) years.(3) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) for non specific type of metal mineral mining may be granted for a maximum period of 20 (twenty) years and may be extended twice, respectively for 10 (ten) years. ,(4) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) for rock mining may be granted for a maximum period of 5 (five) years and may be extended twice, respectively for 5 (five) years.(5) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) for coal mining may be granted for a maximum period of 20 (twenty) years and may be extended twice, respectively for 10 (ten) years. Article 48The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) isgranted by: 28
  29. 29. a. the bupati (regent)/mayor if the location of mining, the location of processing and refining, and seaport is within a territory of a kabupaten (regency) /municipality;b. the governor, if the if the location of mining, the location of processing and refining, and seaport is crossing territories of separate kabupaten (regencies)/municipalities after a recommendation from the respective bupati (regent) /mayor conforming to the provisions of laws and legislations; andc. the MInister, if the if the location of mining, the location of processing and refining, and seaport is in the territory of another province after a recommendation from the respective bupati (regent) /mayor conforming to the provisions of laws and legislations. Article 49Further provisions concerning procedure of grant of Exploration Mining BusinessPermit (IUP Eksplorasi) as referred to in Article 42 and Production Operation MiningBusiness Permit (IUP Operasi Produksi /IUPOP) as referred to in Article 46 shall beregulated under a government regulation. Section Four Mineral Mining Paragraph 1 Radioactive Mineral Mining Article 50The Mining Business Area (Wilayah Usaha Pertambangan /WUP) for radioactive mineralsshall be stipulated by the Government and its exploitation shall be executed inaccordance with the provisions of laws and legislations. Paragraph 2 29
  30. 30. Metal Mineral Mining Article 51The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for metalmineral shall be granted to a business entity, cooperative, and individual through abid. Article 52(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for metal mineral shall be granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) with minimum size of 5,000 (five thousand hectares) and a maximum of 100,000 (one hundred thousand) hectares.(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for metal mineral has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be given to another party to exploit another mineral which discovery is separate.(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in clause (2) shall be made after considering opinions from the first holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP). Article 53The holder of Production Operation Mining Business Permit (IUP Operasi Produksi/IUPOP) for metal mineral shall be granted a Mining Business Permit Area (WilayahIzin Usaha Pertambangan /WIUP) for a maximum size of 25,000 (twenty-five thousand)hectares. Paragraph 3 Non Metal Mineral Mining 30
  31. 31. Article 54The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for nonmetal mineral shall be granted to a business entity, cooperative, and individualthrough a proposal for an area to the grantor of permit as referred to in Article 37. Article 55(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for non metal mineral shall be granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) with minimum size of 500 (five hundred hectares) and a maximum of 25,000 (twenty-five thousand) hectares.(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for non metal minerals has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be given to another party to exploit another mineral which discovery is separate.(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in clause (2) shall be made after considering opinions from the first holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP). Article 56The holder of Production Operation Mining Business Permit (IUP Operasi Produksi/IUPOP) of non metal mineral shall be granted a Mining Business Permit Area (WilayahIzin Usaha Pertambangan /WIUP) for a maximum size of 5,000 (five thousand) hectares. Paragraph 4 Rock Mining Article 57 31
  32. 32. The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for rockshall be granted to a business entity, cooperative, and individual through a proposalfor an area to the grantor of permit as referred to in Article 37. Article 58(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for rock shall be granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) with minimum size of 5 (five hectares) and a maximum of 5,000 (five thousand) hectares.(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for rock has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be given to another party to exploit another mineral which discovery is separate.(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in clause (2) shall be made after considering opinions from the first holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP). Article 59The holder of Production Operation Mining Business Permit (IUP Operasi Produksi/IUPOP) for rock shall be granted a Mining Business Permit Area (Wilayah Izin UsahaPertambangan /WIUP) for a maximum size of 1,000 (one thousand) hectares. Section Five Coal Mining Article 60The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for coalshall be granted to a business entity, cooperative, and individual through a bid. 32
  33. 33. Article 61(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for coal shall be granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) with minimum size of 5,000 (five thousand hectares) and a maximum of 50,000 (fifty thousand) hectares.(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for coal has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be given to another party to exploit the mineral which discovery is separate.(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in clause (2) shall be made after considering opinions from the first holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP). Article 62The holder of Production Operation Mining Business Permit (IUP Operasi Produksi/IUPOP) for coal shall be granted a Mining Business Permit Area (Wilayah Izin UsahaPertambangan /WIUP) for a maximum size of 15,000 (fifteen thousand) hectares. Article 63Further provisions concerning procedure to obtain the Mining Business Permit Area(Wilayah Izin Usaha Pertambangan /WIUP) as referred to in Article 51, Article 54, Article57, and Article 60 shall be regulated under a government regulation. CHAPTER VIII REQUIREMENTS FOR MINING BUSINESS PERMIT Article 64The government and the local government, in accordance with their authority shallannounce the plan of the mining business activities in the Mining Business Permit Area 33
  34. 34. (Wilayah Izin Usaha Pertambangan /WIUP) as referred to in Article 16 and grant theExploration Mining Business Permit (IUP Eksplorasi) and Production Operation MiningBusiness Permit (IUP Operasi Produksi /IUPOP) as referred to in Article 36 to the publicopenly. Article 65(1) The business entity, cooperative, and individual, as referred to in Article 51, Article 54, Article 57, and Article 60 mining a mining business shall be obliged to meet administrative, technical, environment, and financial requirements.(2) Further terms pertaining to the administrative, technical, environment, and financial requirements as referred to in clause (1) shall be regulated under a government regulation. CHAPTER IX PEOPLES MINING PERMIT Article 66The peoples mining activity as referred to in Article 20 shall be categorized as follows:a. metal mineral mining;b. non metal mineral mining;c. rock mining; and /ord. coal mining. Article 67(1) The bupati (regent) /mayor grants the Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) in particular for the local people, be them individuals or community group and /or cooperative. 34
  35. 35. (2) The bupati (regent) /mayor may delegate the authority of execution of grant of Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR)as referred to in clause (1) to the chief of subdistrict (camat) pursuant to the provisions of laws and legislations.(3) To obtain the Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) as referred to in clause (1), the applicant shall submit a proposal to the bupati (regent) /mayor. Article 68(1) The size of area for 1 (one) Peoples Mining Business Permit (Izin PertambanganRakyat/IPR) which may be granted to: a. an individual is a maximum of 1 (one) hectare; b. a community group is a maximum of 5 (five) hectares; and /or c. a cooperative is a maximum of 10 (one) hectare;(2) The Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall be given for a maximum period of 5 (five) years which may be extended. Article 69The holder of a Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) shallbe entitled to:a. get an assistance and supervision in work safety and health, the environment mining engineering, and management from the government and /or regional government; andb. receive capital aid in accordance with the provisions of laws and legislations. Article 70The holder of a Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall: 35
  36. 36. a. execute mining activities no later than 3 (three) months after the Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) is issued;b. comply with the provisions of laws and legislations in work safety and health in mining, environment management, and meet applicable standards;c. manage the environment with the local government;d. pay a fixed fee and exploration fee; ande. submit a report of execution of peoples mining business activities regularly to the grantor of the Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR). Article 71(1) As addition to matters as referred to in Article 70, the holder of a Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR) in running the activities of peoples mining as referred to in Article 66 shall comply with mining technical requirements.(2) Further provisions concerning mining technical requirements as referred to in clause (1) shall be regulated under a government regulation. Article 72Further provisions concerning procedure of grant of a Peoples Mining Business Permit(Izin Pertambangan Rakyat/IPR) shall be regulated under a kabupaten(regency)/municipality local regulation. Article 73(1) The government of the kabupaten (regency)/municipality runs assistance in exploitation, mining technology, and investment and marketing in the context of improving the capability of the peoples mining business.(2) The government of the kabupaten (regency)/municipality shall be responsible for technical safeguarding on peoples mining business covering: 36
  37. 37. a. work safety and health; b. management of the environment; c. post mining.(3) To execute technical safeguarding as referred to in clause (2), the government of the kabupaten (regency)/municipality shall appoint a mine inspector functional officer in accordance with the provisions of laws and legislations.(4) The government of the kabupaten (regency)/municipality shall take a record of production of all peoples mining business activities in its region and shall report thereof regularly to the Minister and respective governor. CHAPTER X SPECIAL MINING BUSINESS PERMIT (IZIN USAHA PERTAMBANGAN KHUSUS /IUPK) Article 74(1) A Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be granted by the Minister by considering regional interest.(2) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) shall be granted for 1 (one) type of mineral or coal in 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK).(3) The holder of a Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) who discovers other minerals in the managed Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) shall be given priority for exploitation thereof. 37
  38. 38. (4) The holder of the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) who intends to exploit other minerals as referred to in clause (2) shall submit a new Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) proposal to the Minister.(5) The holder of a Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (2) may state his /her unwillingness to exploit the other minerals discovered.(6) The holder of the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) who is not willing to exploit the other minerals discovered as referred to in clause (4), shall safeguard the other mineral to prevent utilization by other party.(7) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) for the other mineral as referred to in clause (4) and (5) may be granted to another party by the Minister. Article 75(1) The grant of Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in Article 74 clause (1) shall be made based on considerations as referred to in Article 28.(2) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) may be granted to a business entity which has Indonesian legal entity, be it in form of a state owned legal entity, a regional owned legal entity, or a private business entity. 38
  39. 39. (3) The state owned business entity and regional owned business entity as referred to in paragraph (2) shall be given priority in obtaining the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).(4) For the private business entity as referred to in clause (2), obtaining a Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be conducted through bid of a Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK). Article 76(1) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)comprises of two phases: a. Exploration Special Mining Business Permit (IUPK Eksplorasi)covering the activity of general survey, exploration, and feasibility study; b. Production Operation Special Mining Business Permit (IUPK Operasi Produksi) covering the activities of construction, mining, processing, and refining, and transportation and sales.(2) The holder of the Exploration Special Mining Business Permit (IUPK Eksplorasi) and Production Operation Special Mining Business Permit (IUPK Operasi Produksi) may run some of or all activities as referred to in clause (1).(3) Further provisions concerning procedure to obtain a Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) shall be regulated under a government regulation. Article 77 39
  40. 40. (1) Every holder of a Exploration Special Mining Business Permit (IUPK Eksplorasi) is guaranteed to obtain a Production Operation Special Mining Business Permit (IUPK Operasi Produksi) as a continuance of his /her mining business activity.(2) The Production Operation Special Mining Business Permit (IUPK Operasi Produksi) may be granted to a business entity which is an Indonesian legal entity as referred to in Article 75 clause (3) and clause (4) which has obtained the data of result of feasibility study. Article 78The Exploration Special Mining Business Permit (IUPK Eksplorasi) as referred to inArticle 76 clause (1) item a shall include at least:a. name of the company;b. size and location of area;c. general spatial planning;d. surety bond;e. investment capital;f. time extension of an activity phase;g. rights and obligations of the holder of the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK);h. duration of activity phase;j. type of business awarded;j. plan for development and empowerment of the community in the vicinity of the mining area;k. taxation;l. settlement of dispute and land issues; 40
  41. 41. m. fixed fee and exploration fee; andn. AMDAL (Environment Impact Statement). Article 79The Production Operation Special Mining Business Permit (IUPK Operasi Produksi) asreferred to in Article 76 clause (1) item b shall include at least:a. name of the company;b. size of area;c. location of mining;d. location of processing and refining;e. transportation and sales;f. investment capital;g. duration of activity phase;h. settlement of land issues;i. the environment including post mining reclamation;j. reclamation and post mining bond fund;k. duration of validity of the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK);l. extension of the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK);m. rights and obligations;n. development and empowerment of the community in the vicinity of the mining area;o. taxation; 41
  42. 42. p. fixed fee and production fee and state /regional income portion, comprises of profit sharing of net profit since production;q. settlement of dispute;r. work safety and health;s. conservation of mineral or coal;f. utilization of domestic goods, services, technology, engineering and construction capability;u. application of good economy and mining engineering rules;v. improvement of Indonesian workers;w. management of mineral or coal data;x. mastery, development, and implementation of mineral or coal mining technology; andy. divestment of shares Article 80The Mining Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)shall not be used for purpose other than intended in the grant of the Special MiningBusiness Permit (Izin Usaha Pertambangan Khusus/IUPK). Article 81(1) In case of the activity of exploration and the activity of feasibility study, the holder of the Exploration Special Mining Business Permit (IUPK Eksplorasi) who obtains excavated mineral or coal shall submit a report to the Minister.(2) The holder of the Exploration Special Mining Business Permit (IUPK Eksplorasi) intending to sell the metal mineral or coal as referred to in paragraph (1) shall propose for a temporary permit to conduct transportation and sales. 42
  43. 43. (3) The temporary permit as referred to in clause (2) shall be granted by the Minister. Article 82To the excavated mineral or coal as referred to in Article 81, a production fee may beimposed.The requirement for size of are and time limit conforming to mining business categoryapplicable for a holder of Special Mining Business Permit (Izin Usaha PertambanganKhusus/IUPK) covers:a. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) for the phase of activity ofmetal mineral mining exploration shall be given at a maximum size of 100,000 (one hundred thousand) hectares.b. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) for the phase of production operation of metal mineral mining shall be given at a maximum size of 25,000 (twenty-five thousand) hectares.c. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) for the phase of exploration activity shall be given at a maximum size of 50,000 (fifty thousand) hectares.d. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) for the phase of production operation activity shall be given at a maximum size of 15,000 (fifteen thousand) hectares.e. The Exploration Special Mining Business Permit (IUPK Eksplorasi) for metal mineral mining may be granted for a period of a maximum of 8 (eight) years. 43
  44. 44. f. The Exploration Special Mining Business Permit (IUPK Eksplorasi) for coal mining may be granted for a period of a maximum of 7 (seven) years.g. The Production Operation Special Mining Business Permit (IUPK Operasi Produksi) for metal mineral or coal mining may be granted for a maximum period of 20 (twenty) years and may be extended twice, respectively for 10 (ten) years. Article 84Further provisions concerning procedure to obtain the Special Mining Business PermitArea (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) as referred to in Article 74clause (2) and clause (3), and Article 75 clause (3) shall be regulated under agovernment regulation. CHAPTER XI REQUIREMENTS FOR SPECIAL MINING BUSINESS PERMIT Article 85The government shall announce the plan of the mining business activities in the SpecialMining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) asreferred to in Article 30 and grant the Exploration Special Mining Business Permit(IUPK Eksplorasi) and Production Operation Special Mining Business Permit (IUPKOperasi Produksi) as referred to in Article 76 to the public openly.(1) The business entity as referred to in Article 75 clause (2) which running the activity in the Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) shall satisfy administrative, technical, environment, and financial requirements. 44
  45. 45. (2) Further terms pertaining to the administrative, technical, environment, and financial requirements as referred to in paragraph (1) shall be regulated under a government regulation. CHAPTER XII MINING DATA Article 87To support preparation of the Mining Area (Wilayah Pertambangan /WP) anddevelopment of mining knowledge and technology, the Minister or the governor,conforming to their authority may assign a state and /or regional research institutionto conduct survey and research in mining. Article 88(1) The data acquired from the mining business activity shall be the data owned by the Government and /or regional government conforming to their authority.(2) The data of mining business owned by the regional government shall be delivered to the Government for national level mining data processing.(3) The data processing as referred to in clause (1) shall be administered by the Government and /or regional government conforming to their authority. Article 89Further provisions concerning procedure of assigning survey and research as referredto in Article 87 and data processing as referred to in Article 88 shall be regulated undera government regulation. CHAPTER XIII RIGHTS AND OBLIGATIONS Section One Rights Article 90 45
  46. 46. The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) and SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may conduct some ofor all phases of mining business for both exploration and production operationactivities. Article 91The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) or SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may utilize publicfacilities for mining purpose after satisfying the provisios of laws and legislations. Article 92The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) or SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) has the right to ownmineral, including its trace minerals or coal already produced after the exploration orproduction fee is paid, except for radioactive trace mineral. Article 93(1) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall not transfer his /her Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) to another party.(2) Transfer of ownership and /or share at the Indonesian Stock Exchange may only be conducted after running a specific phase of exploration activity.(3) The transfer of ownership and /or share as referred to in clause (2) may only be conducted under the following conditions: a. must deliver a notification to the Minister, governor, or bupati (regent) /mayor conforming to their authority; and 46
  47. 47. b. provided that it is not contradictive to the provisions of laws and legislations. Article 94The right of the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) orSpecial Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall beguaranteed foro running mining business in accordance with the provisions of lawsand legislations. Section Two Obligations Article 95The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall:a. implement good mining engineering rules;b. manage finance conforming to Indonesian accounting system;c. create an added value of mineral and /or coal resource;d. conduct development and empowerment of the local community; ande. comply with the tolerance limit of environment bearing capacity. Article 96In the implementation of good mining engineering rules, the holder of the MiningBusiness Permit (Izin Usaha Pertambangan/IUP) and the Special Mining Business Permit(Izin Usaha Pertambangan Khusus/IUPK) shall execute:a. the provisions concerning mining work safety and health;b. mining operation safety;c. management and supervision of mining environment, including reclamation and post mining activities; 47
  48. 48. d. the effort of conservation of mineral and coal resources;e. management of mining tailing of a mining business activity in solid, liquid, or gas form until it meets the environment quality standard before release to the environment. Article 97The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall guarantee theapplication of environment quality standard in accordance with characteristics of aregion. Article 98The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) or SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall maintain thepreservation of function and support capability of the respective water resource inaccordance with the provisions of laws and legislations. Article 99(1) Every holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall seliver a reclamation and post mining plan when proposing for a Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) or Production Operation Special Mining Business Permit (IUPK Operasi Produksi).(2) Execution of the reclamation and post mining activity shall be made conforming to post mining land purpose.(3) The post mining land purpose as referred to in clause (2) shall be written in a land use agreement between the holder of Mining Business Permit (Izin Usaha 48
  49. 49. Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) and holder of right over the land. Article 100(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall provide a guarantee fund for reclamation and post mining guarantee fund.(2) The Minister, governor, or bupati (regent) /mayor, conforming to their authority may assign a third party to conduct reclamation and post mining activities utilizing the guarantee fund as referred to in clause (1).(3) The provisions as referred to in clause (2) shall apply if the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) fail to execute the reclamation and post mining activities conforming to approved plan. Article 101Further terms concerning reclamation and post mining as referred to in Article 99 andreclamation guarantee fund and post mining guarantee fund as referred to in Article100 shall be regulated under a government regulation. Article 102The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall increase theadded value of the mineral and /or coal in execution of the mining, processing, andrefining, and utilization of mineral and coal. Article 103 49
  50. 50. (1) The holder of Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) and Production Operation Special Mining Business Permit (IUPK Operasi Produksi) shall execute processing and refining of mining result in Indonesia.(2) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) may process and refine the mining result from another holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).(3) Further provisions concerning improvement of added value as referred to in Article 102 and processing and refining as referred to in clause (2) shall be regulated under a government regulation. Article 104(1) For processing and refining, the holder of the Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) and Production Operation Special Mining Business Permit (IUPK Operasi Produksi) as referred to in Article 103 may arrange a collaboration with a business entity, cooperative, or individual who has obtained a Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).(2) The Mining Business Permit (Izin Usaha Pertambangan/IUP) obtained by a business entity as referred to in clause (1) shall be a Specific Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) issued by the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.(3) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in 50
  51. 51. clause (1) is prohibited from conducting processing and refining of mining result from anyone who is not a holder of Mining Business Permit (Izin Usaha Pertambangan/IUP), Peoples Mining Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK). Article 105(1) A business entity which business activity is not in the mining business intending to sell excavated mineral and /or coal shall first obtain a Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) for sales.(2) The Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in Article 1 paragraph (1) may only be granted once by the by the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.(3) On the excavated mineral or coal to sell as referred to in clause (1), a production fee may be imposed.(4) The Business Entity as referred to in clause (1) and clause (2) shall submit a report of sales of excavated mineral and /or coal to the by the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority. Article 106The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) must give priority toemployment of local worker, domestik goods and services in accordance with theprovisions of laws and legislations. Article 107In running the production operation activity, the business holder holding a MiningBusiness Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit 51
  52. 52. (Izin Usaha Pertambangan Khusus/IUPK) shall involve local entrepreneurs in the regionin accordance with the provisions of laws and legislations.(1) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) an Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall devise a community development and empowerment program.(2) The devise of program and plan as referred to in clause (1) shall be with consult with the Government, the regional government, and the people. Article 109Further provisions concerning procedure of execution of community development andempowerment as referred to in Article 108 shall be regulated under a governmentregulation. Article 110The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall surrender all dataacquired from exploration and production exploitation result to the Minister, thegovernor, and the bupati (regent) /mayor in accordance with their authority. Article 111(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall submit a written report regularly concerning the work plan and excution of mineral and coal mining business activities to the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.(2) Further provisions concerning format, type, time, and procedure of submission of report as referred to in clause (1) shall be regulated under a government regulation. 52
  53. 53. Article 112(1) After 5 (five) years of production, a business entity holding a Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which shares are owned by foreigners shall conduct a divestment of shares on the Government, regional government, state owned company, regional owned company, or national private business entity.(2) Further terms concerning divestment of shares as referred to in paragraph (1) shall be regulated by a government regulation. CHAPTER XIVTEMPORARY SUSPENSION OF MINING BUSINESS PERMIT ACTIVITIES AND SPECIAL MINING BUSINESS PERMIT Article 113(1) Temporary suspension of a mining business activity may be granted to the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) in the event of: a. force majeure b. obstructive condition which causes halt of part of or all of mining business activities; c. when all bearing capacities of the environment of the area cannot support the load of production operation activity of mineral and /or coal resource conducted in its area.(2) The temporary suspension of mining business activity as referred to in clause (1) shall not reduce the validity period of the Mining Business Permit (Izin Usaha 53
  54. 54. Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).(3) The request for temporary suspension of mining business activity as referred to in clause (1) item a and item b shall be delivered to the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.(4) The temporary suspension as referred to in clause (1) item c may be exercised by the mine inspector or exercised based on the peoples request to the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.(5) The Minister, the governor, and the bupati (regent) /mayor in accordance with their authority shall issue a written decree on grant or rejection along the reason thereof upon the request as referred to in clause (3) no later than 30 (thirty) days from the receipt of the request. Article 114(1) The duration of temporary suspension due to force majeure and /or obstructive condition as referred to in Article 113 clause (1) shall be granted for a maximum of 1 (one) year which may be extended at a maximum once for 1 (one) year.(2) If within the time before the temporary suspension period expires, the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) is ready to execute his /her operation activities, the activities shall be reported to the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.(3) The Minister, the governor, and the bupati (regent) /mayor in accordance with their authority shall revoke the decree of temporary suspension after receiving the report as referred to in clause (2). 54
  55. 55. Article 115(1) If temporary suspension of the mining business activity is granted due to force majeure as referred to in Article 113 clause (1) item a, the obligations of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) to the Government and the local government cease to apply.(2) If temporary suspension of the mining business activity is granted due to conditions obstructive to mining business activities as referred to in Article 113 clause (1) item b, the obligations of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) to the Government and the local government continue to apply.(3) If temporary suspension of the mining business activity is granted due to condition of environment bearing capacity of the area as referred to in Article 113 clause (1) item c, the obligations of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) to the Government and the local government continue to apply. Article 116Further provisions concerning temporary suspension of mining business activity asreferred to in Article 113, Article 114, and Article 115 shall be regulated under agovernment regulation. CHAPTER XV EXPIRY OF MINING BUSINESS PERMIT AND SPECIAL MINING BUSINESS PERMIT Article 117 55
  56. 56. The Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special MiningBusiness Permit (Izin Usaha Pertambangan Khusus/IUPK) shall expire due to:a. returned;b. revoked; orc. expiry of its validity period. Article 118(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may return his /her Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) by written statement to the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority along a clear reason thereof.(2) The returning of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) shall be stated valid after approval by the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority and after the obligations of the holder are complied with. Article 119The Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining BusinessPermit (Izin Usaha Pertambangan Khusus/IUPK) can be revoked by the Minister, thegovernor, and the bupati (regent) /mayor in accordance with their authority, in theevent that:a. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) fails to comply with 56
  57. 57. the obligations stipulated in the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) and the provisions of laws and legislations.b. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) conducts a criminal act as referred to in this Law; orc. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) is stated to bebankrupt. Article 120In the event the period defined in the Mining Business Permit (Izin UsahaPertambangan/IUP) and Special Mining Business Permit (Izin Usaha PertambanganKhusus/IUPK) has expired and an advancement or extension request is not submittedfor the activity or a request is submitted but fails to meet requirements, thet MiningBusiness Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit(Izin Usaha Pertambangan Khusus/IUPK) shall cease to be valid. Article 121(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) expires due to the reason as referred to in Article 117, Article 118, Article 119, and Article 129 shall fulfill and settle obligations in accordance with the provisions of laws and legislations. 57
  58. 58. (2) The obligations of the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) shall be considered to have been complied with and approved by the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority. Article 122(1) The Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which has been returned, revoked, or validity period expires as referred to in Article 121, shall be returned to the Minister, the governor, and the bupati (regent) /mayor in accordance with their authority.(2) The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) or Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) which Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) has expired as referred to in clause (1) shall be offered to a business entity, cooperative, or individual through a mechanism in accordance with the provisions of this Law. Article 123In the event the Mining Business Permit (Izin Usaha Pertambangan/IUP) or SpecialMining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) expires, the holder ofthe Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining BusinessPermit (Izin Usaha Pertambangan Khusus/IUPK) shall surrender all data acquired fromexploration and production operation result to the Minister, the governor, and thebupati (regent) /mayor in accordance with their authority. 58
  59. 59. CHAPTER XVI MINING SERVICE BUSINESS Article 124(1) The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall use local and /or national mining service companies.(2) In case the mining service companies as referred to in clause (1) is not available, the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may use other mining service companies which establishment are as Indonesian legal entity.(3) The type of mining service business covers: a. consulting, planning, execution, and testing of equipment in: 1) general survey; 2) exploration; 3) feasibility study; 4) mining construction; 5) transportation; 6) mining environment; 7) post mining and reclamation; and /or 8) work safety and health; b. consulting, planning, and testing of equipment in: 1) mining; or 2) processing and refining. Article 125 59
  60. 60. (1) In the event the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) uses mining service, the responsibility of mining business activity shall remain on the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).(2) The executive of mining service business can be in form of a business entity, cooperative, or individual conforming to classification and qualification set forth by the Minister.(3) The actor of mining service company shall give priority to local contractors and workers.(4) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) is prohibited from involving affiliates in the mining service business sector in the mining business area it operates, except under consent of the Minister.(5) The grant of consent of the Minister as referred to in paragraph (1) shall be made in the event: a. there isnt any similar mining service companywithin the area; or b. there isnt any mining service company which is willing /capable. Article 127Further provisions concerning administering of mining business service as referred toin Article 124, Article 125, and Article 126 shall be regulated under a regulation of aminister. CHAPTER XVII 60

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