recently, i have joined one of the coal mining company in Indonesia. and for that reason i must study about indonesia's mining law which not have been studied in campus curriculum. the main basic for company to run a mining business is to have a permit from the government.
law no. 4/2009 concerning mineral and coal mining enactment has made several major changes from the old mining law. under the old mining law, mineral exploration and mining activity was conducted under the mining authorization (KP) and/or contract of work. the new mining law states that the company must submit mining permit (IUP). IUP is granted in two stages, namely the exploration IUP and the operation production IUP. any exploration IUP holder shall be assured of obtaining a operation production IUP in furtherance of his/her mining business.
IUP can be granted by the regents/mayors, the governors, or the minister depending on the mining area. a coal exploration IUP may be granted for a period of at most 7 years with IUP area of at least 5,000 hectares and at most 50,000 hectares. a coal production operation IUP may be granted for a period of at most 20 years, extendable to 10 years 2 times respectively, with IUP area of at most 15,000 hectares.
law no. 4/2009 concerning mineral and coal mining enactment has made several major changes from the old mining law. under the old mining law, mineral exploration and mining activity was conducted under the mining authorization (KP) and/or contract of work. the new mining law states that the company must submit mining permit (IUP). IUP is granted in two stages, namely the exploration IUP and the operation production IUP. any exploration IUP holder shall be assured of obtaining a operation production IUP in furtherance of his/her mining business.
IUP can be granted by the regents/mayors, the governors, or the minister depending on the mining area. a coal exploration IUP may be granted for a period of at most 7 years with IUP area of at least 5,000 hectares and at most 50,000 hectares. a coal production operation IUP may be granted for a period of at most 20 years, extendable to 10 years 2 times respectively, with IUP area of at most 15,000 hectares.
