INDONESIAN MINING LAW ( In Brief)

Mineral and Coal mining activities are governed under the Law on Mineral and Coal Mining No.4/2009 dated 12 January 2009 (“Mining Law”).This law replaces the predecessor Mining Law No. 11/1967,which provided the framework for all of Indonesia’s pre-2009 mining concessions including all of the existing CoW’s and Coal CoW’s (“CCoW’s). The Mining law is dependent on a significant number of implementing regulations to provide detail on how it will be administered. Whilst some of the implementing regulations have recently been issued , a number of regulations in respect of key areas of new law are still in process of being issued.

The introduction of the Mining law represents a significant change to the previous Indonesian mining regulatory regime. Contractual-based-concessions will no longer be available for new mining projects. Both the well –regarded CoW/CCoW framework for foreign investors and Kuasa Pertambangan (“KP”), or mining rights, framework for Indonesian investors, have been replaced by a single area-based licensing system based in specified mining areas.

The mining law provides for 3 categories of mining license ,depending upon the location and nature of the resource. The categories are as follow: