Within a span of one year, the Minister of Energy and Mineral Resources issued the Decree Number 375.K/MB.01/MEM.B/2023 on the Guidance of Application, Evaluation, and Processing of Expansion of Mining Business License Area (“WIUP”) and Special Mining Business License Area (“WIUPK”) for Conservation of Mineral and Coals, which revokes its predecessor Decree Number 266.K/MB.01/MEM.B/2022 on the same matter. With the issuance of the current Decree, the Minister has cleared up the legal loop-holes as demonstrated from additional requirements provided to IUP/IUPK holders and additional characteristics of the requested mining area for expansion, with immediate effect. Find out more our insights about this topic in our Legal Brief Publication.

1. Legal Brief
Expansion of Mining Area Business License in
Indonesia

2. BACKGROUND
Objectives
Par. 2 of MoEMR Decree 375/2023
Applicable to Who?
1
2
3
Mining Business License / Izin Usaha Pertambangan (“IUP”) holders for
metal minerals;
IUP holders for coals;
Special Mining Business License / Izin Usaha Pertambangan Khusus
(“IUPK”) holders for metal minerals; and
IUPK holders for coals.
4
Art. 140 (1) GR 96/2021
Deliverables
Par. 9 and Point (b) of Consideration of MoEMR 375/2023
On 23rd of October 2023, Ministry of Energy and Mineral Resources / Kementerian Energi dan Sumber Daya Mineral (“MoEMR”) issued the MoEMR Decree
375.K/MB.01/MEM.B/2023 on the Guidance of Application, Evaluation, and Processing of Expansion of Mining Business License Area (“WIUP”) and Special
Mining Business License Area (“WIUPK”) for Conservation of Mineral and Coals (“MoEMR Decree 375/2023”). The MoEMR Decree 375/2023 revokes the
former decree namely MoEMR 266.K/MB.01/MEM.B/2022 on the same matter (“MoEMR Decree 266/2022”) due to the fact that the MoEMR Decree 266/2022
has not provided sufficient directive to optimize the potential of marginal mineral reserves or coals and/or indicative of marginal mineral deposits or coals for
conservation.
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2
1
2
Appendix I and Appendix II of MoEMR Decree 375/2023
Optimization of the potential of marginal
mineral or coal reserves within the area that is
applied for expansion.
Optimization of the indication of marginal
mineral or coal sediments within the area that is
applied for expansion.
Director General of Minerals and Coal /
Direktur Jenderal Mineral dan Batubara
(“DGoMC”) License on Work Plan of
WIUP/WIUPK’s Expansion
DGoMC’s License on WIUP/WIUPK
Expansion
A H R P L e g a l B r i e f

3. REQUIREMENTS OF EXPANSION OF WIUP AND WIUPK
Art. 140 (2) GR 96/2021 jo. Par. 3 MoEMR Decree 375/2023
Par. 5 MoEMR Decree 375/2023
Area Criteria
Size
Evaluation of MoEMR
WIUP
WIUPK
Metal Minerals
Coals 15,000 hectares
25,000 hectares
Location
Prohibition
An area which coincides with the initial WIUP or WIUPK and has a potential of continuity of coal deposits; or minerals deposit
characteristics which proven by the relevant exploration data covering the border area of the initial WIUP or WIUPK.
An area which coincides with the initial WIUP or WIUPK and is located between 2 (two) or more WIUP or WIUPK (corridor area),
and there is a potential of continuity of coal deposits; or minerals deposit characteristics which proven by the relevant
exploration data covering the border area of the initial WIUP or WIUPK.
Par. 4 Point (a) MoEMR Decree 375/2023
The area which applied for expansion shall not overlap with:
1. Other WIUP or WIUPK with the same type of commodity;
2. State Reserves Area and Community Mining Area;
3. An area that has been applied to be determined as WIUP of Metal Minerals, WIUP of
Coals, or WIUPK;
4. An IUP area which under the issuance/registration process based on the decision of
an administrative court or a final report which is a result of any authorized state
institution to supervise the establishment of public services;
5. A former IUP area or IUPK which has been revoked or under evaluation;
6. An area which is applied for expansion of WIUP or WIUPK which is currently under
process or has been approved; and
7. An area which is determined as an assignment area for investigation and research for
preparing the relevant WIUP or WIUPK for development and/or utilization of coals.
Par. 4 Point (b) MoEMR Decree 375/2023
Criteria of Applicants - IUP/IUPK Holders
Registered in the list of IUP’s resulting from the
arrangement of IUP and IUPK that meet the
provisions listed in Minerba One Data Indonesia
(MODI).
Has been in production for at least 3
consecutive years and has good conservation
performance.
Has carried out detailed exploration of all
prospect areas in the initial WIUP or WIUPK.
Has carried out detailed exploration of all
prospect areas in the initial WIUP or WIUPK.
A H R P L e g a l B r i e f

4. Comparison between MoEMR Decree 266/2022 and MoEMR Decree
375/2023
Similarities
Total Area
Applied for
Expansion
• WIUP of Metal Minerals – 25,000 HA (twenty-five thousand hectares);
• WIUP of Coals – 15,000 HA (fifteen thousand hectares); and
• WIUPK – subject to MoEMR’s approval.
Period to obtain
Approval of
Expansion of
WIUP and WIUPK
• 14 days as of the receipt of complete and correct documents and requirements.
• A statement letter or application by online submission to MoEMR’s website;
• An approval of work plan expansion of WIUP or WIUPK and documents of work plan
expansion of WIUP or WIUPK that has been approved by DGoMC;
• A map and coordinates of border of the area in accordance with the evaluation result;
and
• Receipt of full payment of compensation of information data which the amount is as
determined by MoEMR.
Requirements to
obtain Approval
of WIUP and
WIUPK
Art. 140 (2) GR 96/2021 jo. Par. 3 MoEMR Decree 375/2023.
Art. 140 (2) GR 96/2021 jo Par. 2 MoEMR Decree 266/2022.
Appendix II of MoEMR Decree 375/2023.
Appendix II of MoEMR Decree 266/2022.
Par. 8 of MoEMR Decree 375/2023.
Par. 8 of MoEMR Decree 266/2022.
A H R P L e g a l B r i e f

5. Comparison between MoEMR Decree 266/2022 and MoEMR Decree
375/2023 (1/4)
Differences
Requirements
of Area
• Mainly regulates about the maximum total area that can
be applied for expansion;
• No classifications or scope of the requirement of coincide
with WIUP or WIUPK;
• No supporting activities required to prove that the
relevant area fulfils the qualification; and
• No explicit prohibition to submit an application over an
overlapping area.
Par. 2 MoEMR Decree 266/2022
• Other than regulates about the maximum total area
that can be applied for expansion, the existing
regulation provides more detail requirements of the
location of the area, namely:
i. an area which coincides with the initial WIUP or
WIUPK and has a potential of continuity of coal
deposits; or minerals deposit characteristics which
proven by the relevant exploration data
covering the border area of the initial WIUP or
WIUPK; and
ii. an area which coincides with the initial WIUP or
WIUPK and is located between 2 (two) or more
WIUP or WIUPK (corridor area), and there is a
potential of continuity of coal deposits; or minerals
deposit characteristics which proven by the
relevant exploration data covering the border
area of the initial WIUP or WIUPK.
• The area which applied for expansion shall not
overlap with any area that has obtained its
approval or determination for the relevant
utilization (ie. Other WIUP or WIUPK).
MoEMR Decree 266/2022 MoEMR Decree 375/2023
Par. 4 Point (a) of MoEMR Decree 375/2023
A H R P L e g a l B r i e f

6. Comparison between MoEMR Decree 266/2022 and MoEMR Decree
375/2023 (2/4)
Differences MoEMR Decree 266/2022 MoEMR Decree 375/2023
Requirements
of Applicants
(IUP or IUPK
holders)
• Par. 5 of MoEMR Decree 375/2023 specifies 4
requirements for IUP/IUPK holders to apply for
expansion of WIUP and WIUPK. The
requirements point out the obligation of the
applicants to have been registered in the
DGoMC’s system, have conducted exploration in
the relevant area and submitted the relevant
data, also have been in production operation
stage for at least 3 years.
• Par. 6 of MoEMR Decree 375/2023 also
regulates the same requirement as Par 3 of
MoEMR Decree 266/2022 which an approval of
Work Plan Expansion of WIUP or WIUPK is a
prerequisite to obtain an approval of WIUP or
WIUPK expansion.
• No specific requirements for IUP/IUPK holders who
wish to apply for the expansion of WIUP/WIUPK.
However, pursuant to Par. 3 of MoEMR Decree
266/2022, the applicable application scheme is on
'first come first served basis’.
• Par. 3 of MoEMR Decree 266/2022 also regulates
that the IUP/IUPK holders shall obtain a prior
approval from DGoMC on Work Plan Expansion of
WIUP or WIUPK.
Period to obtain
Approval of
Work Plan
Expansion of
WIUP or WIUPK
• 30 days as of the receipt of complete and correct
documents and requirements.
• 14 days as of the receipt of complete and correct
documents and requirements.
Appendix 1 of MoEMR Decree 375/2023
Appendix 1 of MoEMR Decree 266/2022
A H R P L e g a l B r i e f

7. Comparison between MoEMR Decree 266/2022 and MoEMR Decree
375/2023 (3/4)
Differences MoEMR Decree 266/2022 MoEMR Decree 375/2023
Requirements
to Obtain an
Approval of
Work Plan
Expansion of
WIUP or WIUPK
• Other than those formerly regulated under
MoEMR Decree 266/2022, MoEMR Decree
375/2023 adds several requirements as follow:
• Document of Work Plan of Expansion of WIUP
or WIUPK that covers:
i. Interpretation of continuity of metal minerals
and/or coals in the area applied for expansion
based on the relevant and sufficient data,
supported by a map distribution of the effect
of continuity of metal minerals or coals
pursuant to the observation coordinates and
spatial data
• A copy of conservation periodic report which
supported by a copy of receipt of submission of
the relevant report for 2 years in minimum; and
• An application letter;
• A map and points of coordinates of the applied
border area;
• Document of Work Plan of Expansion of WIUP or
WIUPK that covers:
i. A map of distribution of marginal reserve and/or
indication of marginal deposit in the WIUP or
WIUPK;
ii. Interpretation of cross section and geology model
or minerals in the WIUP or WIUP which
describes that scientifically, there is a continuity
of reserves under the area applied for expansion;
iii. An estimation of the amount of metal minerals or
coals potentials which will be obtained in the
area applied for expansion;
iv. A statement letter from a geologist/mining expert
which are competent for reporting exploration
and estimation of minerals and coals resources
about the potential of marginal reserves and/or
indications of marginal deposits in the WIUP or
WIUPK that scientifically, there is a continuity of
minerals and/or coals;
• Final exploration report and/or continuation
exploration report that contains information of
coordinates in the WIUP or WIUPK which borders
with the expansion area being applied;
• A statement letter containing the ability to pay for
compensation of data information as determined by
MoEMR.
Par. 4 of MoEMR Decree 266/2022
Par. 4 of MoEMR Decree 375/2023
A H R P L e g a l B r i e f

8. 1 day
Comparison between MoEMR Decree 266/2022 and MoEMR Decree
375/2023 (4/4)
Appendix I of MoEMR Decree 266/2022
DGoMC delivers
the Application to
Director of
Technical of
Environment of
Minerals and Coals
(“DoTE”) 4 days
6 days
DGoMC evaluates the Letter of
Evaluation of Criteria and
Requirements
2 days
Delivery of
evaluation
report from
DGoMC to
Applicants
DGoMC
processes
the
issuance of
approval
DGoMC issues an approval
1 day
Procedures to obtain Approval of Work Plan Expansion of WIUP or WIUPK
DoTE
receives
evaluation
report from
DoPM and
DoBM
DoTE evaluates the
conservation aspects
and request for area,
compensation, and
exploration aspects
Director of Program
Management (‘DoPM’)
evaluates the area and
compensation aspects
Director of Business
Management
(“DoBM”) evaluates
the exploration aspect
DGoMC issues
a letter of
disapproval 1 day
or
Online Submission of
Application to DGoMC
(perizinan.esdm.go.id)
Differences
Appendix 1 of MoEMR Decree 375/2023
DGoMC delivers the
Application to DoTE
3 days
DoTE evaluates the
completeness of
application
documents
5 days
Resubmission
DoTE requests for further evaluations
(area, exploration, and compensation aspects)
Incomplete
DoTE evaluates the
conservation aspects
DoPM evaluates the area and
compensation aspects
DoBM evaluates the
exploration aspect
Complete
5 days
Delivery of evaluation
report from DGoMC to
Applicants
DGoMC processes the
issuance of approval
DGoMC issues
an approval
5 days
DoTE receives
evaluation report from
DoPM and DoBM
or
DGoMC issues
a letter of
disapproval
Online Submission of
Application to DGoMC
(perizinan.esdm.go.id)
12 days
DGoMC
evaluates the
evaluation of the
relevant aspects
A H R P L e g a l B r i e f

9. Procedures to Obtain Expansion of Mining Area Approval
Online Submission of
Application to DGoMC
(perizinan.esdm.go.id)
DGoMC delivers the
Application to DoBM
DoBM receives
the applications
DoBM requests for evaluation
of map and coordinates to
DoPM
DoBM request for
signature on the
Approval to the Secretary
of Directorate General
DoBM processes the
application of approval
Delivery of evaluation report
from MoEMR to the Applicants
DGoMC processes the
issuance of approval
DGoMC issues
a letter of
disapproval
DGoMC issues
an approval
Obstacles
Conclusion
01 02
A H R P L e g a l B r i e f
The MoEMR 375/2023 provides clearer requirements and
procedures for the IUP and IUPK holders to submit for
Mining Area expansion. The existing regulations also
provides prohibition of overlapping of the relevant area. On the
other hand, the execution of the regulations may not be that
easy due to other licenses requirements that the IUP and IUPK
holders have to comply with and lack of incentives from the
government to conduct mining business activities.
Further clarification with the DGoMC about the
procedures and requirements once application
of approvals of (a) Work Plan Expansion of
WIUP and WIUPK; also (b) Mining Business Area
Expansion are rejected may also be required (ie.
whether or not there is maximum times of re-
application).
• Once the IUP and IUPK holders obtain the Mining Area Expansion Approval, they shall amend the relevant business
licenses, among others are (a) Business Identification Number; (b) Environmental Impact Analysis (AMDAL);
Environmental Management Plan (RKL), Environmental Monitoring Plan (RPL), and Environmental Approval;
also; (c) the IUP or IUPK, to reflect the change on the total mining area. It may take time for them to obtain the
relevant amendment;
There is no incentives yet from the Government of Indonesia for IUP and IUPK holders
to conduct expansion of WIUP and WIUPK; and
Land ownership issues may still appear, particularly with the local people.
MoEMR Decree 375/2023
1 day
9 days
2 days
2 days

10. We will continue to follow the developments on this topic and provide additional information as it becomes
available. If you have any questions on this topic, please contact:
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning
the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your
circumstances before deciding to take any action.
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