Indonesia’s mining sector is undergoing a major regulatory shift with the issuance of Government Regulation Number 39 of 2025. This update introduces inclusive mining policies, prioritizes equitable resource distribution through WIUP/WIUPK allocation, and strengthens domestic mineral and coal fulfillment obligations. It also sets out new rules for Rare Earth Materials utilization and expands the scope of Mining Services License (IUJP). Find out more our insights about this topic in our Legal Brief Publication.

1. Legal Brief
Indonesia’s Updated Mining Policy: An Overview of
Government Regulation Number 39 of 2025
December, 2025

2. Special Mining Business License
(Area Wilayah Izin Usaha
Pertambangan Khusus or “WIUPK”)
refers to areas that already have
available data, potential, and/or
geological information that can be
utilised for national strategic interests.
Mining refers to activities to produce
minerals and/or coal and associated
minerals
s
Background
A H R P L e g a l B r i e f
In January 2025, the Government of Indonesia issued Government Regulation Number 39 of 2025 (“GR 39/2025”), introducing the second
amendment to Government Regulation Number 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities (“GR 96/2021”).
This regulatory update reflects the Government’s ongoing effort to refine the governance of Indonesia’s mineral and coal mining sector, following
substantial policy shifts contained in Law Number 4 of 2009 as lastly amended by Law Number 3 of 2020 on Mineral and Coal Mining.
"This Government Regulation stipulates mandatory supply of mineral and coal industries for state-owned
enterprises that serve the public interest, in line with the Asta Cita (Eight Principles) related to energy self-
sufficiency.” – M. Khalid Syierazi (Executive Director of Center for Energy Policy)
Sucipto, “Penetapan PP 39 Tahun 2025 Selaras dengan Asta Cita Presiden Prabowo”,
https://nasional.sindonews.com/read/1630423/12/penetapan-pp-39-tahun-2025-selaras-dengan-asta-cita-presiden-prabowo-1759993850 accessed
on December 12 2025
WHAT’S INSIDE?
01 02 03 04
Updated provisions for
granting WIUP/K
Utilization of
Rare Earth Materials
(Logam Tanah Jarang)
Granting of WIUP/K
through priority
mechanism
Updated regulation on Mining
Services License
(Izin Usaha Jasa
Pertambangan)
Making mining activities more inclusive by
widening participation beyond large
industry players.
KEY OBJECTIVES
01
Empowering small and medium
businesses, cooperatives, and religious
community organizations to strengthen
their role within the mining ecosystem.
Prioritizing the granting of IUP/K and
WIUP/K to these designated groups as
part of equitable resource distribution.
KEY TERMS
02
Mining License (Izin Usaha Pertambangan
or “IUP”) refers to permit to conduct a Mining
Business.
Mining Business License Area (Wilayah
Izin Usaha Pertambangan or “WIUP”) refers
to area granted to IUP or SIPB holders.
Special Mining Licenses (Izin Usaha
Pertambangan Khusus or “IUPK”) refers to
permit to conduct mining operations in the
special mining permit area
Mining Services Licenses (Izin Usaha Jasa
Pertambangan or “IUJP”) refers to permit
granted to conduct core mining service
activities related to the stages and/or parts of
Mining Business activities.
Art. 1 (10) GR 39/2025
Art. 1 (33) GR 39/2025
Art. 1 (12) GR 39/2025
Art. 1 (36) GR 39/2025
Art. 1 (22) GR 39/2025
Reflecting the Government’s agenda to make mining activities more inclusive, GR 39/2025 incorporates policy directions aimed at widening
participation beyond large industry actors, empowering small and medium business entities, cooperatives, and religious or community-based
organizations, and prioritizing the allocation of Mining Business License/Special Mining Business License (Izin Usaha Pertambangan/Khusus or
“IUP/K”) and Mining Business License Area/Special Mining Business License Area (Wilayah Izin Usaha Pertambangan/Khusus or “WIUP/K”) to
these designated groups as part of a more equitable distribution of mining opportunities. The regulation introduces targeted refinements to
licensing processes, operational requirements, and administrative coordination between central and regional authorities to translate these policy
goals into clear and implementable mechanisms.
Art. 1 (16) GR 39/2025

3. Regulatory Overview
A H R P L e g a l B r i e f
Based on GR 39/2025, there are 6 categories of parties who are eligible to obtain WIUP and/or WIUPK for metal minerals and coal. These
entitled parties must meet certain criteria, as well as various administrative, technical, and/or commitment-related requirements, depending on the
type of entity concerned.
Eligible Parties
01
State Owned
Enterprise
(“SOE”)
Local private
enterprise
Enterprise owned
by religious
organizations
Regional Owned
Enterprise
(“ROE”)
Companies to increase
public access to higher
education and enhance
university
Foreign private
enterprise
1 2 3 4 5 6
Authorization of WIUP and WIUPK
02
WIUP
1
Radioactive
Minerals
Metallic Minerals
Coals
Authorized for SOE
Authorized for SOE
(specifically for the Rare Earth Material)
Auction
Priority Allocation
Non-Metallic
Minerals
Specific Non-
Metallic Minerals
Rocks
Regional Request
WIUPK
2
Metallic Minerals
Coals
Auction
Priority Allocation
A WIUP is an area granted to holders of an IUP or SIPB and is categorized into:
1. WIUP Mineral Radioactive: granted through direct appointment to SOEs.
2. WIUP Metal Mineral and WIUP Coal: may be granted through direct appointment to SOEs (for certain commodities such as rare earth metals),
auction, or priority allocation.
3. WIUP Mineral Non-Metal, WIUP Specific Mineral Non-Metal, and WIUP Rock: granted through regional request (permohonan wilayah).
A WIUPK is an area granted to IUPK holders and consists of:
1. WIUPK Metal Mineral, and
2. WIUPK Coal,
both of which may be awarded through auction or priority allocation.
1
2
3
1
2
Art. 17 GR 39/2025
Secion 2 Paragraphs 2 and 2A GR 39/2025

4. Utilization of Rare Earth Materials
A H R P L e g a l B r i e f
GR 39/2025 permits Rare Earth Materials (“REM”) commodities to be sourced from WIUP for metallic minerals or from processing and refining by-
products, but now further clarifies that these commodities must be directed toward supporting the development of designated domestic priority
industries.
Art. 18A GR 39/2025
Procedures for the Granting of Metallic Minerals WIUP on REM
To implement the policy directions set out under GR 39/2025 on the governance of mineral and coal mining activities, the Ministry of Energy and
Mineral Resources (“MoEMR”) has issued Minister of MoEMR Regulation Number 18 of 2025 on the implementing regulation of the Government
Regulation Number 39 of 2025 regarding the second amendment of the Government Regulation Number 96 of 2021 on Implementation of Mineral and
Coal Mining Business Activities (“MoEMR Reg. 18/2025”), which provides the detailed operational framework for the management, utilization, and
licensing of REM commodities.
In addition, MoEMR Reg. 18/2025 sets out more detailed procedures for the issuance of Metal Mineral WIUPs specifically related to REM
commodities, as illustrated in the flowchart below.
MoEMR
The Minister of MoEMR identifies potential
areas for Metal Mineral WIUP for REM
commodities based on investigation and
research conducted by the Geological Agency.
1
Designation of the WIUP Metallic Mineral for
REM Utilizations.
2
Designation
The Minister may designate a SOE to carry out
the management and utilization of these
commodities.
3
SOEs
The designated SOEs must fulfill any
compliance and business requirements ruled
by the Government.
4
Art. 4 MoEMR Reg. 18/2025
The designation must be supported by a performance-guarantee deposit for exploration, placed as a time deposit at a state-owned bank under the
name of the Minister for the benefit of the designated SOE.
Performance-Guarantee Deposit
WIUP <= 40 Ha
1
WIUP > 40 Ha
2
Rp50 Million
Rp1,5 Million per Ha
The designated party who has paid data compensation
and has placed a performance-guarantee deposit in
carrying out exploration activities, but did not submit an
IUP exploration, may apply for a refund of the
performance-guarantee deposit in carrying out
exploration activities to the MoEMR.
Art. 14 (5) MoEMR Reg. 18/2025

5. A H R P L e g a l B r i e f
Granting of WIUP/K by Priority Mechanism [1/2]
Cooperative
Small and Medium Business Entity
Business entities owned by religious community
organizations
SOE and private business entity to increase public access to
higher education and enhance university independence and
excellence
ROE cooperating with universities
SOE and private business entity to increase added
value/downstreaming*
• Cooperative membership area and domicile located within
the same regency/city as the location of the WIUP.
• Possess a Business Identification Number (Nomor Induk
Berusaha or “NIB”) covering business activities in the field of
metal mineral or coal Mining business.
• Cooperative legal entity status has been verified in the
cooperative database.
• In the form of Limited Liability Company (“LLC”) and
domiciled within the same regency/city as the location of the
WIUP.
• The shareholders must be Indonesian citizens residing in the
same regency/city as the location of the WIUP.
• Possess NIB covering business activities in the field of metal
mineral or coal Mining business.
• verified small and medium-sized business entity whose legal
status is recorded in the small and medium-sized business
entity database.
• Must be an LLC with at least 67% of its shares owned by a
Religious Community Organization (“RCO”).
• The owning RCO must be registered in the government's
RCO information system and have a national scope of
activities as stipulated by RCO regulations.
• The RCO must be dedicated to managing economic
resources, preserving the environment, and upholding
societal norms, values, ethics, and culture.
• Possess NIB covering metal mineral or coal Mining activities,
and its legal status (as an RCO-owned entity) must be
verified in the business entity database.
• Must be an LLC.
• Had a prior experience in mineral or coal Mining, or, if new,
secure support from an experienced mining company.
• Must agree to provide a portion of its profits to a university via
a cooperation agreement, which must include a mandatory
minimum of 60% of the IUP holder's net profits dedicated to
the university, distributed as a priority from the start of
production (subject to public accountant audit).
• Must be an LLC with sufficient initial capital to execute Mining
activities.
• Must commit to good Mining practices, evidenced by a
statement and competency certificate.
• Had a prior experience in mineral or coal Mining, or, if new,
secure support from an experienced Mining company.
• Must agree to provide a portion of its profits to a university via
a cooperation agreement, which must include a mandatory
minimum of 60% of the IUP holder's net profits dedicated to
the university, distributed as a priority from the start of
production (subject to public accountant audit).
• Must be an LLC.
• Must undertake downstreaming/value-addition activities that
support the supply of industrial raw materials.
• Must have a development plan for the downstreaming
ecosystem and possess sufficient capital for these activities.
• Must focus on domestic job creation and technology
development.
Requirements for various entities for the granting of WIUP
through a priority mechanism Art. 26D jo. Art. 25F jo. Art. 75D jo. Art. 75F GR 39/2025
Maximum WIUP Acreage:
• WIUP Coal: 2,500 hectare
• WIUP Metal Mineral; 2,500 hectare
Maximum WIUP Acreage:
• WIUP Coal: 15,000 hectare
• WIUP Metal Mineral; 25,000 hectare
Maximum WIUP Acreage:
• WIUP Coal: 15,000 hectare
• WIUP Metal Mineral; 25,000 hectare
* Only applicable for WIUP by Priority Mechanism

6. A H R P L e g a l B r i e f
Granting of WIUP/K by Priority Mechanism [2/2]
Application
1
Application for the granting of WIUP
Metal Mineral or WIUP/WIUPK Coal by
way of priority carried out through Online
Single Submission (“OSS”) System
Verification
2
• Administrative verification (legality and membership criteria) for cooperatives is carried out by the Minister organizing government
affairs in the field of Cooperatives.
• Administrative verification (legality and business entity criteria) for small and medium business entities is carried out by the
Minister organizing government affairs in the field of small and medium enterprises.
• Verification of technical criteria and commitment statements for Cooperatives and small and medium Business Entities is carried
out by the MoEMR.
• Verification of all criteria (administrative, technical, and commitment statements) for the granting of priority WIUP to the following
entities is carried out by the MoEMR:
o Business entities owned by RCOs;
o SOEs, ROEs, and private business entities for the purpose of increasing access to higher education and university excellence;
and
o SOEs and private business entities for the purpose of increasing added value/downstreaming.
Granting of WIUP
3
Granting of WIUP/WIUPK is issued by
MoEMR through the OSS System
based on the verification process
Art. 26B jo. Art. 75B GR 39/2025
Art. 26F jo. Art. 75F GR 39/2025
Art. 26C jo. Art. 75C GR 39/2025
• SOEs, ROEs, Cooperative, or Business Entity receiving metal mineral or coal WIUP/WIUPK by priority shall submit an IUP/IUPK application to
the MoEMR through the OSS System.
• Regarding the WIUP/WIUPK granted by priority mechanism, SOEs, ROEs, or business entity receiving metal mineral or coal WIUP/WIUPK by
priority must submit an application for IUP/IUPK issuance by fulfilling the requirements in accordance with the provisions of the prevailing laws
and regulations in the field of risk-based business licensing administration.
Art. 30A jo. Art. 30B jo. Art. 91A jo. Art. 91B GR 39/2025
There remains legal uncertainty because several aspects related to verification criteria have not yet been regulated, such as:
• No further provision for cases where small and medium business entities no longer meet the capital requirements to be considered small and
medium businesses.
• Regarding RCO, how will the government assess maintaining norms and values?; (i) Is a track record of specific programs required? (ii) Is it
sufficient to rely on the Articles of Association and Bylaws (AD/ART)?

7. Updated Provisions Regarding IUJP
A H R P L e g a l B r i e f
Previously, GR 96/2021 regulates the purpose of the IUJP is to
carry out mining services business activities within the scope of
business types in the field of:
a. General Survey;
b. Exploration;
c. Feasibility Study;
d. Mining Construction;
e. Transportation;
f. Mining Environment;
g. Reclamation and Post-Mining;
h. Mining Safety; and/or
i. Mining.
Mining services business activities above consist of:
consultation, planning, and implementation.
Article 137 (2) (3) GR 39/2025
Now, GR 39/2025 broaden the IUJP scope to carry out mining
services business activities within the scope of business types
in the field of:
a. General Survey;
b. Exploration;
c. Feasibility Study;
d. Mining Construction;
e. Transportation;
f. Mining Environment;
g. Reclamation and Post-Mining;
h. Mining Safety;
i. Mining; and/or
j. Processing.
Mining services business activities above consist of:
consultation, planning, and implementation.
Article 137 (2) (3) GR 96/2021
Addition in the Scope of Mining Services Activities for IUJP Holders
Changes and Additions to the Provisions related to IUJP in GR No. 39/2025
Alluvial Mineral Mining
IUP or IUPK Production Operation holders may only assign mining
activities for Alluvial Mineral excavation to an IUJP holder with the
status of domestic investment (PMDN) company as issued by the
local governor.
Exception for Foreign Investment Company
If no capable local or national mining services company is available,
the IUP or IUPK holder may use a mining services company with
Indonesian legal entity under the framework of foreign investment
(Penanaman Modal Asing or “PMA”).
Contractual Obligation
Any engagement of a mining services company by an IUP or IUPK
holder must be based on a work contract founded on the principles
of propriety, transparency, and fairness. The preparation and
implementation of this contract is the responsibility of both
contracting parties.
Restrictions on Engaging Subsidiaries/Affiliates
• The IUP or IUPK holder is prohibited from involving its subsidiary
or affiliate in mining services within its operating area, unless
granted the MoEMR permission.
• Permission is granted only if there is no similar, capable, or
interested mining services company in the area.
• The use of such a subsidiary or affiliate must fulfill the principles
of propriety, transparency, and fairness.
Sub-Contracting and Liability Provision
• Local and/or national mining services companies may sub-
contract a portion of the mining services work they obtain to other
Mining Services companies, subject to the approval of the IUP or
IUPK holder.
• Mining services companies with Indonesian legal entity under the
framework of PMA that obtain work from an IUP or IUPK holder
must sub-contract a portion of that work to local or national
mining services companies.
• All mining services companies must prioritize the use of local
and/or national mining services companies as contractors and
must prioritize local/national labor.
• Risks arising from mining services subcontractors (who are not
directly contracted), remains fully borne by the IUP or IUPK
Holder, who is also obliged to carry out guidance and supervision
to ensure the mining services company fulfills its obligations in
accordance with the prevailing laws and regulations.
Article 137 (7) GR 39/2025 Article 137 (8) (9) GR 39/2025
Article 137A GR 39/2025
Article 137 (10) (11) GR 39/2025
Article 138 jo. Article 138A GR 39/2025

8. Domestic Fulfillment Obligation of Mineral/Coal
A H R P L e g a l B r i e f
Domestic Fulfillment Obligation of Mineral/Coal and Priority
IUP or IUPK holders in operation production stage must meet
domestic mineral and/or coal needs and prioritize SOEs needs
in sectors controlling the public interest.
The priority sectors controlling the public interest
include:
• electricity;
• energy supply;
• fertilizer; and
• national strategic industries.
The obligation to prioritize SOEs needs requires coal fulfillment to be
completed before conducting any overseas sales or export activities.
MoEMR determines the total domestic
mineral and coal needs based on the
requirements of SOEs in these priority
sectors.
To ensure the supply of mineral raw materials
for domestic strategic industries, enhance the
national economy, defense and security, and
optimize domestic Mineral downstreaming,
the government may establish special
regulations concerning the governance of
critical minerals and strategic minerals.
e
d
a
b
c
Sales and Export of Mineral/Coal Provisions
Sales activities conducted by IUP or IUPK holders include:
• domestic sales with considering the prioritization of
domestic fulfilment obligation to SOEs; and
• overseas sales.
Mineral export is allowed only after:
• The fulfillment of minimum processing
and/or refining quota; and
• the fulfillment of raw material needs for
domestic mineral processing and/or
refining and other strategic industries
for metal mineral commodities.
Coal export is allowed only after confirming that all
domestic coal needs, especially those for SOEs in
priority sectors, have been fulfilled, and national energy
resilience has been considered.
MoEMR performs supervision to ensure
compliance with the implementation of
domestic coal needs fulfillment.
a
b
c
d
Art. 157 GR 39/2025
Art. 158 GR 39/2025
Mandatory Levies and Financial Management of Mining Businesses
Art. 188B-188C GR 39/2025
MoEMR is authorized to manage up to 20% of the annual Non-Tax State Revenue (Penerimaan Negara Bukan Pajak or “PNBP”) generated
from mineral and coal Mining to fund crucial sectoral activities, including accelerating infrastructure development, supporting operational
guidance and supervision, and improving government employee competency.
a
Mandatory Profit Sharing for IUPK Holders: holders of the production operation IUPK are required to pay 10% of their annual net profits
from the start of production; this total is split between the central government (4%) and the regional government (6%). The 6% share
designated for the regional government is calculated based on the previous year's audited net profit (after corporate income tax) and must be
directly deposited by the IUPK holder to the respective provincial government annually, with specific procedural details governed by provincial
regional regulations.
b

9. Key Takeaways from GR 39/2025
A H R P L e g a l B r i e f
05
04
03
02
01
06
Mining Services
GR 39/2025 broadens IUJP
coverage to include processing
activities, in addition to existing
mining service activities such
as survey, exploration,
feasibility study, and
reclamation. IUP/IUPK holders
are prohibited from using their
own subsidiaries or affiliates
for mining services unless
MoEMR grants permission—
allowed only when no similar,
capable local company is
available. Engagement must
follow principles of propriety,
transparency, and fairness.
Domestic Fulfilment Obligation
IUP/IUPK holders must prioritize domestic mineral
and coal needs, especially SOEs in electricity,
energy, fertilizer, and strategic industries, before
export. Export allowed only after meeting domestic
needs and minimum processing/refining quotas.
IUP/IUPK holders are also subject to mandatory
levies and financial management of mining
businesses provisions under article 188B and 188C
GR 39/2025. Such provision shall also apply to
existing IUP/IUPK holders.
Licensing Framework
Inclusive Mining Policy
Priority Mechanism Requirements
Entities must meet strict administrative, technical, and commitment
criteria, verified via the OSS system. Obligations include downstreaming
plans, local job creation, and profit-sharing with universities (minimum
60% of net profits).
REM-Specified Regulation
• GR 39/2025 provide a new commodity-
specific legal basis, that is REM and
stipulates whereas REM utilization must
support domestic priority industries.
• Furthermore, as the implementing
regulation, MoEMR Reg. 18/2025 details
operational procedures, including SOE
designation and performance-guarantee
deposits for exploration. Performance-
guarantee deposit shall only apply to SOE
designated by MoEMR for newly identified
WIUPK, and not existing WIUPK.
GR 39/2025 prioritizes equitable resource
distribution by empowering MSMEs, cooperatives,
and religious/community organizations, granting
them access to WIUP/WIUPK through priority
mechanisms.
• WIUP and WIUPK allocation
methods include direct
appointment (SOEs),
auction, and priority
mechanisms.
• Six categories of eligible
entities: SOEs, ROEs, local
private enterprises, foreign
private enterprises, religious
organization-owned
companies, and entities
supporting higher education.

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:
Aryangga P. Febrianto
aryangga@ahrplaw.com
Qiya Islam
qiya@ahrplaw.com
Justin Huang
justin@ahrplaw.com
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.
World Capital Tower 19th floor
Jl. Mega Kuningan Barat No.3
Jakarta 12950 Indonesia
P: +6221 50917915
+6221 50917916
E: office@ahrplaw.com
www.ahrplaw.com