Thursday, March 05, 2009

Indonesia Significant Points Domestic Interest In Minerals and COAL

NEW ERA OF Indonesian Mining, rulings which changes the COW era to become Permits to conduct the Mining Business Activities.
  • LEGALIZATION & Effect. On 12th January 2009, the New Minerals and Coal Mining Law No 4 Year 2009 had been legalized and signed by the President and being enacted as Law by the Minister Of Justice and Human Rights (New Mineral and Coal Mining Law No.4/2009) This New Minerals and Coal Law No.4/2009 will take into effect as of the date it is enacted as Law as above mentioned.
  • BEGINNING OF NEW ERA. This New Law becomes the NEW ERA of Indonesian Mining Law, which changes the COW Era and the Kuasa Pertambangan (KP) Mining Authority system that has been exercised for the last 40 years since 1967. The COW /KP system has been replaced by an area based permit / licensing system. Under this New Law there are several Permits to conduct the mining business activities which is attached and linked to several classifications of Mining Areas as regulated under such New Minerals and Coal Law No.4/2009
  • AUTHORIZATION. Based on Article 4 of such New Mineral and Coal Mining Law No.4/2009 the Mineral and Coal as the natural resources which is non-renewal is the national wealth which is possessed by the State for the largest prosperity of the people. This authorization of minerals and the coal by the State is performed by the Government and /or the Regional Government.
  • DOMESTIC INTEREST. Article 5 of New Mineral and Coal Mining Law No.4/2009 states that for the national interest, the Government after consultation with the DPR (Peoples’s House of Representative) can determine a policy for the prioritization of minerals and coal for the domestic interest. This national interest can be done by controlling the production and export. In implementing such control, the Government has the authority to determine the amount of production of each commodities per year per province. The Local Government is obliged to comply with the rulings of such amount as determined by the Central Government.
We have also published this at ALLVOICES GLOBAL MEDIA Jakarta, February 5, 2009

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

Blog Law Firm : http://www.sacolaw.blogspot.com

Email : agungsuleiman@gmail.com

Clasification of Mining Area in the New MINERALS AND COAL MINING LAW NO 4 Year 2009

  • The New Minerals & Coal Mining Areas formed several Mining Areas based permits system, which was not found under the previous law :
Chapter I Article 1 There are several meaning /classification of Mining Area :
  • Wilayah Pertambangan /Mining Area, referred to as WP, is an Area which owns potential mineral and/or coal and is not limited with government administration which form part of the national layout (tata ruang)
  • Wilayah Usaha Pertambangan, Mining Business Area, referred as WUP, is part of the WP which had owned availability of data, potential, and /or geological information
  • Wilayah Izin Usaha Pertambangan, Mining Business Area Permit, referred to as WIUP, is an area which granted to the holder of IUP
  • Wilayah Pertambangan Rakyat, People's Mining Area, referred to as WPR, is part of the WP place where the people's mining business activities is conducted
  • Wilayah Pencadangan Negara,State Reservation Area, referred to as WPN, is part of the WP which is reserved for the national strategic interest.
  • Wilayah Usaha Pertambangan Khusus,The Special Mining Business Area, referred to as WUPK, is part of the WPN which can be usahakan (businessed / efforted) .
  • Wilayah Izin Usaha Pertambangan Khusus / The Special Mining Business Area Permit within the WUPK, referred to as WIUPK, is an area which is granted to the holder of IUPK.
Published in ALLVOICES GLOBAL MEDIA

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

Blog Law Firm : http://www.sacolaw.blogspot.com

Email : agungsuleiman@gmail.com

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