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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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Sunday, 12 July 15
SHIPYARD NOT LIABLE FOR ENGINE ROOM FIRE CAUSED BY OIL LEAKAGE - BIRCH WINDAHL
KNOWLEDGE TO ELEVATE
A Danish vessel owner requested a Danish shipyard to undertake repairs and maintenance works on its vessel. An agreement ...
Saturday, 11 July 15
MAJOR IRANIAN GAS EXPORTS WILL TAKE AT LEAST FIVE YEARS - FITCH
Iran has the long-term potential to become one of the world's top gas producers, thanks to its 34 trillion cubic meters (tcm) of natural gas re ...
Friday, 10 July 15
DRY BULK MARKET KEEPS POSITIVE MOMENTUM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept its positive momentum over the course of the past few days, thanks to Panamax gains. During yesterday’s session ...
Friday, 10 July 15
U.S PRODUCED APPROXIMATELY TOTALED AN ESTIMATED 14.1 MMST WEEK OVER WEEK - EIA
COALspot.com – United States the second largest coal producer in the world has produced approximately totaled an estimated 14.1 million short ...
Thursday, 09 July 15
CPP MARKET : POSITIVE IN THE SHORT TERM - GEORGE VASTARDIS
Despite the traditionally quieter summer period, the clean tanker market has so far experienced healthy activity especially East of Suez. Increased ...
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- Jaiprakash Power Ventures ltd
- Global Business Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Chettinad Cement Corporation Ltd - India
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- Cement Manufacturers Association - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Bukit Baiduri Energy - Indonesia
- London Commodity Brokers - England
- Coastal Gujarat Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ceylon Electricity Board - Sri Lanka
- Thiess Contractors Indonesia
- Miang Besar Coal Terminal - Indonesia
- Ministry of Finance - Indonesia
- Sojitz Corporation - Japan
- Rio Tinto Coal - Australia
- Bukit Makmur.PT - Indonesia
- Pendopo Energi Batubara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Bhatia International Limited - India
- CIMB Investment Bank - Malaysia
- Sree Jayajothi Cements Limited - India
- Economic Council, Georgia
- Videocon Industries ltd - India
- Eastern Coal Council - USA
- Lanco Infratech Ltd - India
- Kumho Petrochemical, South Korea
- New Zealand Coal & Carbon
- The Treasury - Australian Government
- Kobexindo Tractors - Indoneisa
- Mercuria Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- Antam Resourcindo - Indonesia
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Kalimantan Lumbung Energi - Indonesia
- Goldman Sachs - Singapore
- Central Java Power - Indonesia
- Straits Asia Resources Limited - Singapore
- Bharathi Cement Corporation - India
- Bhushan Steel Limited - India
- Oldendorff Carriers - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kepco SPC Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Xindia Steels Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- Minerals Council of Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- PowerSource Philippines DevCo
- Holcim Trading Pte Ltd - Singapore
- Posco Energy - South Korea
- Central Electricity Authority - India
- Baramulti Group, Indonesia
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Indogreen Group - Indonesia
- Semirara Mining Corp, Philippines
- Indonesian Coal Mining Association
- Samtan Co., Ltd - South Korea
- ASAPP Information Group - India
- Larsen & Toubro Limited - India
- Wood Mackenzie - Singapore
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Karbindo Abesyapradhi - Indoneisa
- Trasteel International SA, Italy
- Manunggal Multi Energi - Indonesia
- Ambuja Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Vedanta Resources Plc - India
- International Coal Ventures Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- Energy Development Corp, Philippines
- Sical Logistics Limited - India
- Binh Thuan Hamico - Vietnam
- Toyota Tsusho Corporation, Japan
- Marubeni Corporation - India
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- VISA Power Limited - India
- ICICI Bank Limited - India
- Kartika Selabumi Mining - Indonesia
- Electricity Authority, New Zealand
- GAC Shipping (India) Pvt Ltd
- Makarim & Taira - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Petron Corporation, Philippines
- TeaM Sual Corporation - Philippines
- SMC Global Power, Philippines
- Mercator Lines Limited - India
- Carbofer General Trading SA - India
- Eastern Energy - Thailand
- Leighton Contractors Pty Ltd - Australia
- Maharashtra Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- LBH Netherlands Bv - Netherlands
- Siam City Cement PLC, Thailand
- Malabar Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- GMR Energy Limited - India
- India Bulls Power Limited - India
- CNBM International Corporation - China
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Gujarat Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Interocean Group of Companies - India
- Essar Steel Hazira Ltd - India
- Renaissance Capital - South Africa
- Energy Link Ltd, New Zealand
- Orica Australia Pty. Ltd.
- South Luzon Thermal Energy Corporation
- Aditya Birla Group - India
- Uttam Galva Steels Limited - India
- Coalindo Energy - Indonesia
- Australian Commodity Traders Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- OPG Power Generation Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- AsiaOL BioFuels Corp., Philippines
- Ind-Barath Power Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Thai Mozambique Logistica
- Tamil Nadu electricity Board
- Gujarat Mineral Development Corp Ltd - India
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Agrawal Coal Company - India
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Africa Commodities Group - South Africa
- Commonwealth Bank - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Simpson Spence & Young - Indonesia
- Georgia Ports Authority, United States
- PTC India Limited - India
- Madhucon Powers Ltd - India
- Jindal Steel & Power Ltd - India
- European Bulk Services B.V. - Netherlands
- Savvy Resources Ltd - HongKong
- Riau Bara Harum - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- White Energy Company Limited
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- Medco Energi Mining Internasional
- Mintek Dendrill Indonesia
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
- Parliament of New Zealand
- Coal and Oil Company - UAE
- Kapuas Tunggal Persada - Indonesia
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Borneo Indobara - Indonesia
- Attock Cement Pakistan Limited
- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- Metalloyd Limited - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- Australian Coal Association
- Indika Energy - Indonesia
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- Mjunction Services Limited - India
- Bhoruka Overseas - Indonesia
- Vizag Seaport Private Limited - India
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Heidelberg Cement - Germany
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Latin American Coal - Colombia
- Meralco Power Generation, Philippines
- Formosa Plastics Group - Taiwan
- MS Steel International - UAE
- Ministry of Mines - Canada
- The University of Queensland
- Indo Tambangraya Megah - Indonesia
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