Recently, the Government of the Republic of Indonesia had issued Government Regulation No.24 Year 2012, which regulates amendment to the Government Regulation No. 23 Year 2010.
- In essence, this Government Regulation was issued to encourage and boost the Indonesian Participant to participate in the Mining of Mineral and Coal within the Indonesian Territory; The IUP or Mining Permit may not be transferred, except if the Party receiving such IUP owns more than 51% shares of the PT holding such IUP;
- Pak Sony as the Legal Officer from the Ditjen Mineral and Coal in a Seminar explained that the intention by the Government is that The Government can monitor the Party who controls such IUP holder who is responsible upon the performances of the Mining Operations in the given Mining Area under such IUP;
Furthermore under Article 7A of the Government Regulation No. 24 Year 2012, it is stipulated that if the applicant of the IUP is foreign capital company or foreign capital Investor, the Minister of ESDM approval is required; Thus, since the IUP is granted by the Bupati, than an IUP cannot be granted by the Bupati to a foreign Capital Investor;
- We can see that in every country now a days, the Government in the Region of the Development Countries based on the development of China, India, Brazil, Russia, South Africa are gaining confidence in encouraging the Local Participant or Local Investors including Indonesia to play a significant role to actively participate in the business operations including in the Mineral and Coal business which could be shown by KPC in Kalimantan which is owned by Bumi Resources as the Indonesian Owned National Participant in the Coal Mining Project in Indonesia;
- This trend is also stimulated by the Growing Awareness of the Indonesian Democracy, which had encourage the Indonesian Investors to actively participate not only as broker, but as a real player in the Mining Minerals and Coal Industry in Indonesia; Time will demonstrate whether the Indonesian Player can really use this momentum in the Mining of Hard Mineral and Coal business operations, which is inspired by the Indonesian Investors in the Oil and Gas, such as Medco, who are really growing and playing an important role in the development of the Indonesian Oil and Gas Sectors;
Jakarta, 2 April 2012