Government Regulation of the Republic of Indonesia concerning Delegation of Mineral and Coal Mining Licensing
Presidential Regulation Number 55 of 2022 regulates the Delegation of Granting Business Permits in the Mineral and Coal Mining Sector.
This Presidential Regulation Number 55 of 2022 was made to implement the provisions of Article 8 of Government Regulation Number 96 of 2O2L concerning the Implementation of Mineral and Coal Mining Business Activities, it is necessary to stipulate a Presidential Regulation concerning the Delegation of the Granting of Business Licensing in the Mineral and Coal Mining Sector.
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| Government Regulation of the Republic of Indonesia concerning Delegation of Mineral and Coal Mining Licensing |
General requirements
Mining is part or all of the stages of activities in the framework, management, and exploitation of minerals or coal which include general investigation, exploration, feasibility studies, construction, mining, processing and/or refining or development and/or utilization, transportation and sales, as well as post-mining activities.
Delegation is the transfer of part of government affairs which are the authority of the central government to the provincial government in the context of granting business permits in the field of mineral and coal mining.
Business Licensing is the legality granted to business actors to start and run their businesses and/or activities.
Granting Business Licensing is an activity of granting legality to business actors to start and run their business and/or activities accompanied by guidance and supervision in the field of mineral and coal mining.
Mining Business Permit, hereinafter referred to as IUP, is a permit to carry out Mining Business.
People's Mining Permit, hereinafter referred to as IPR, is a permit to carry out Mining Business in a people's mining area with limited area and investment.
Rock Mining Permit, hereinafter referred to as SIPB, is a permit granted to carry out certain types of rock mining activities or for certain purposes.
A transportation and Sales Permit is a business license granted to a company to buy, transport, and sell mineral or coal mining commodities.
Mining Services Business License, hereinafter referred to as IUJP, is a permit granted to carry out core Mining services business activities related to the stages and/or parts of Mining business activities.
Scope of Delegated Authority
Delegation includes:
1. standard certificate; and2. permission;
c. supervision over the implementation of the delegated Business Licensing.
The granting of standard certificates includes consulting and business planning activities for Mining services in the fields of:
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.
The granting of permits consists of:
1. is in 1 (one) province; or2. sea area up to 12 (twelve) nautical miles;
1. is in 1 (one) provincial area; or2. sea area up to 12 (twelve) nautical miles;
1. is in 1 (one) provincial area; or2. sea area up to 12 (twelve) nautical miles;
e. IPR;
f. Transport and Sales Permit for non-metal mineral commodities;
g. Transport and Sales Permit for certain types of non-metal mineral commodities;
h. Transport and Sales Permit for rock commodities;
i. IUJP for 1 (one) provincial area;
j. IUP for the sale of non-metal mineral commodities;
k. IUP for the sale of certain types of non-metal mineral commodities; and
l. IUP for the sale of rock commodities.
Implementation of the Granting of Business Licensing
Provincial Governments in the implementation of Delegation are obliged to:
a. carry out the Granting of Delegated Business Licensing effectively and efficiently in accordance with the norms, standards, procedures, and criteria set by the Central Government; and
b. prepare the regional apparatus needed in the implementation of the Granting of Business Licensing in the field of mineral and coal mining.
To see more about Presidential Regulation No. 55 of 2022, you can go to the link below.