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Wednesday, 12 August 15
REGULATION CURBS POWER OF LOCAL AUTHORITIES IN MINING SECTOR IN INDONESIA - FLORENCE G. SANTOSO
 The Indonesian Government appears to be getting serious about stripping Regents of the authority to issue mining licenses. The Government took the first steps in this direction with Minister of Energy and Mineral Resources (MEMR) Regulation No. 27 of 2013 dated September 13, 2013 regarding Procedures for the Divestment of Shares and Changes to Capital Investment in the Mineral and Coal Mining Sectors. That Regulation ordered all Regents and Governors to submit to the MEMR all mining licenses (IUPs) issued for foreign capital (PMA) companies so the IUPs could be re-issued by the MEMR. This process was to be completed before September 13, 2014, but it seems that not all Regents and Governors complied.
With the issuance of the Regional Governance Law (Law No. 23 of 2014) on October 2, 2014, it was made clearer that Regents no longer have authority to issue IUPs. Rather, the sole authority to issue IUPs for mining companies having a mining area located in just one province was vested to Governors, while the MEMR has the authority to issue licenses for mining companies having a mining area located in more than one province and for PMA mining companies.
In support of the Regional Governance Law, the Government issued Government Regulation No. 77 of 2014 (GR 77/2014) dated October 14, 2014 regarding the Third Amendment of Government Regulation No. 23 of 2010 regarding the Implementation of Mineral and Coal Mining Business. GR 77/2014 reaffirmed the requirement under MEMR 27/2013 that the MEMR reissue any IUPs previously issued by Governors and Regents to PMA mining companies. A new deadline of October 14, 2015 was set for the reissuance of the IUPs. This was reasserted in Directorate General of Minerals and Coal Circular Letter No. 01.E/30/DJB/2015 dated April 7, 2015 regarding the Change of Status of Mining Business License in the Framework of Domestic Capital Becoming Foreign Capital.
Since the issuance of the Regional Governance Law, the MEMR has issued a number of regulations curbing the authority of Regents in the mining sector. On March 4, 2015, MEMR Regulation No. 8 of 2015 was issued to amend MEMR Regulation No. 1 of 2014 regarding Increasing the Added Value of Minerals through Domestic Processing and Refining. One of the main changes under MEMR Reg No. 8 of 2015 was the revocation of the authority of Regents to issue smelter licenses (Mining Business License for Processing and Refining, or IUPOKPP) and giving that authority to Governors. Any future smelter licenses will have to be issued by the relevant Governor, though it is unclear whether smelter licenses issued by Regents prior to this Regulation would have to be reissued by Governors and whether the annual work plans and budgets of such smelter companies must be submitted to and approved by the relevant Governor or the Regent.
Despite the above rules and regulations, Regents’ authority to issue IUPs remains unchanged under the 2009 Mining Law. So, there is a conflict between the Mining Law and the Regional Governance Law. While it remains to be seen how this conflict will be resolved there is talk that the 2009 Mining Law will be amended to revoke the authority of Regents to issue IUPs.
By Florence Gracia Santoso
SSEK Indonesian Legal Consultants
About Florence Gracia Santoso
Florence is experienced in energy, infrastructure, investment and mergers and acquisitions, and has been involved in a number of acquisitions involving industrial and trading companies.
Since joining SSEK Legal Consultants in 2010, Florence Gracia Santoso has been involved in numerous major mining transactions.
This article is intended for informational purposes only and does not constitute legal advice. This article should not be acted upon in any specific situation without appropriate legal advice.
If you believe an article violates your rights or the rights of others, please contact us.
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Friday, 31 July 15
COAL PRODUCTION IN THE U.S. UP 3.6% FOR THE WEEK ENDING JULY 25
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 17.8 million shor ...
Friday, 31 July 15
CHINA'S NEW OIL IMPORT RULES HAVE MINIMAL IMPACT ON STATUS QUO - FITCH
Fitch Ratings says that China's looser criteria for crude oil import rights are a positive but modest step towards encouraging private-sector p ...
Thursday, 30 July 15
EFFECTS OF THE CHINESE STOCK MARKET CRISIS - INTERMODAL
All evidence is currently signaling that the Chinese stock market will be the newest hurdle for the global economy. With the world's second lar ...
Wednesday, 29 July 15
Q1'16 FOB INDONESIA COAL SWAP CLOSED HIGHER THAN Q3'15
COALspot.com: Indonesian coal swap for delivery Q3 2015 declined month on month and gains week over week, this past week.
The Q3 swap was decl ...
Wednesday, 29 July 15
Q4' 15 FOB RICHARDS BAY COAL SWAPS DECLINE 4.41% TO $56.52 PMT
COALspot.com: API4 FOB Richards Bay Coal swap for delivery Q3' 2015 declined month over month and week over week.
The Q3 swap was down US$ ...
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- PNOC Exploration Corporation - Philippines
- Minerals Council of Australia
- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Therma Luzon, Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Sical Logistics Limited - India
- Edison Trading Spa - Italy
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- Coastal Gujarat Power Limited - India
- McConnell Dowell - Australia
- Bhatia International Limited - India
- Latin American Coal - Colombia
- Directorate General of MIneral and Coal - Indonesia
- Riau Bara Harum - Indonesia
- Straits Asia Resources Limited - Singapore
- Eastern Coal Council - USA
- Thiess Contractors Indonesia
- Indian Oil Corporation Limited
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- AsiaOL BioFuels Corp., Philippines
- Electricity Generating Authority of Thailand
- Power Finance Corporation Ltd., India
- Essar Steel Hazira Ltd - India
- Krishnapatnam Port Company Ltd. - India
- India Bulls Power Limited - India
- Bharathi Cement Corporation - India
- Malabar Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
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- Georgia Ports Authority, United States
- GAC Shipping (India) Pvt Ltd
- Bukit Baiduri Energy - Indonesia
- Central Java Power - Indonesia
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- Siam City Cement PLC, Thailand
- Renaissance Capital - South Africa
- The University of Queensland
- Wood Mackenzie - Singapore
- Altura Mining Limited, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Standard Chartered Bank - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- The Treasury - Australian Government
- Toyota Tsusho Corporation, Japan
- Kapuas Tunggal Persada - Indonesia
- OPG Power Generation Pvt Ltd - India
- Tata Chemicals Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Aditya Birla Group - India
- Ceylon Electricity Board - Sri Lanka
- Sarangani Energy Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Australian Commodity Traders Exchange
- Bangladesh Power Developement Board
- Jindal Steel & Power Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Mintek Dendrill Indonesia
- Trasteel International SA, Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Port Waratah Coal Services - Australia
- CNBM International Corporation - China
- Ministry of Mines - Canada
- Bukit Asam (Persero) Tbk - Indonesia
- Sakthi Sugars Limited - India
- Intertek Mineral Services - Indonesia
- Cement Manufacturers Association - India
- Sojitz Corporation - Japan
- Simpson Spence & Young - Indonesia
- Ministry of Finance - Indonesia
- LBH Netherlands Bv - Netherlands
- Indika Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Tamil Nadu electricity Board
- Merrill Lynch Commodities Europe
- Price Waterhouse Coopers - Russia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Iligan Light & Power Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Australian Coal Association
- Madhucon Powers Ltd - India
- Orica Mining Services - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ambuja Cements Ltd - India
- Energy Link Ltd, New Zealand
- San Jose City I Power Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- Ministry of Transport, Egypt
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Energy Development Corp, Philippines
- SMC Global Power, Philippines
- SN Aboitiz Power Inc, Philippines
- Mercuria Energy - Indonesia
- SMG Consultants - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Kobexindo Tractors - Indoneisa
- Coalindo Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Posco Energy - South Korea
- Indo Tambangraya Megah - Indonesia
- Kumho Petrochemical, South Korea
- Bhushan Steel Limited - India
- Parliament of New Zealand
- Kepco SPC Power Corporation, Philippines
- Anglo American - United Kingdom
- GMR Energy Limited - India
- Borneo Indobara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- London Commodity Brokers - England
- Banpu Public Company Limited - Thailand
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- Formosa Plastics Group - Taiwan
- GVK Power & Infra Limited - India
- Savvy Resources Ltd - HongKong
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- ASAPP Information Group - India
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Orica Australia Pty. Ltd.
- ICICI Bank Limited - India
- Dalmia Cement Bharat India
- Bayan Resources Tbk. - Indonesia
- Mercator Lines Limited - India
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- Chamber of Mines of South Africa
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- PowerSource Philippines DevCo
- Planning Commission, India
- European Bulk Services B.V. - Netherlands
- Bahari Cakrawala Sebuku - Indonesia
- VISA Power Limited - India
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Metalloyd Limited - United Kingdom
- Uttam Galva Steels Limited - India
- Indogreen Group - Indonesia
- Electricity Authority, New Zealand
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Deloitte Consulting - India
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Africa Commodities Group - South Africa
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- Antam Resourcindo - Indonesia
- Coal and Oil Company - UAE
- Sindya Power Generating Company Private Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Economic Council, Georgia
- Thai Mozambique Logistica
- Karaikal Port Pvt Ltd - India
- Meralco Power Generation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Kartika Selabumi Mining - Indonesia
- Petron Corporation, Philippines
- Eastern Energy - Thailand
- Oldendorff Carriers - Singapore
- New Zealand Coal & Carbon
- Marubeni Corporation - India
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Semirara Mining Corp, Philippines
- IHS Mccloskey Coal Group - USA
- Independent Power Producers Association of India
- Videocon Industries ltd - India
- Romanian Commodities Exchange
- Maheswari Brothers Coal Limited - India
- Holcim Trading Pte Ltd - Singapore
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Agrawal Coal Company - India
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Bulk Trading Sa - Switzerland
- PTC India Limited - India
- Bhoruka Overseas - Indonesia
- Xindia Steels Limited - India
- Central Electricity Authority - India
- International Coal Ventures Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Makarim & Taira - Indonesia
- Aboitiz Power Corporation - Philippines
- Global Business Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Lanco Infratech Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- South Luzon Thermal Energy Corporation
- White Energy Company Limited
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