- The Legal Sources of the General      Mining Law in Indonesia is Article 33(2) and (3) of the      Indonesian Constitutional Law. 
  
   What is Article 33 (2) and (3)  of the Indonesian Constitution LAW ?
Why you as a Foreign or Local General Mining Company who operates in Indonesia, must really understand this Famous Article which was "Planted" in the Indonesian Constitutional Law by the "Founding Fathers" of this Great Nation of Indonesia.
Well, let me try to explain to you why this Article 33(2) and (3) of the Basic Constitution Law 1945 is really significant to be understood by the Mining Companies operating in Indonesia.         
    - Pursuant      to this Article it states that the  branch of productions which are      important for the State and which exploits the mainstream live of the      majority people shall be under the sovereign of the State.
  
    - The earth      and the water and the natural  richness which is contained       therein shall be under the control of the State and be used at the most      for the welfare of the people.
  
    - Furthermore      the basic principal of the control and the beneficial of the natural      richness upon the various mining minerals for the social welfare of the      people in the mining activities shall be implemented under the Indonesian      Mining Law.
  
    - The      Indonesian Nation as the holder of the Ownership Title upon the natural      richness in the form of various mining minerals which is contained in the      earth and water within the Indonesian Territory which is the      "Indonesian Mining Legal Area", shall thereafter "grants the      power" to the State to regulate and makes benefit of such national      richness with the utmost to achieve the justice and prosperity of      the  society  as a whole.
  
    - Thus based      on the above principals, The State has the Authorization Right ( Hak      Penguasaan)  upon such National Richness, whereas the execution/the      performance of the State Sovereign is called " The General Mining Authorization".
  
    - Since the      State posses the right to control or the Authorization Right ( Hak      Penguasaan) upon the various mining minerals, than the State cannot not      grant other rights which is more larger then such Authorization Right. 
  
    -        Accordingly,  what can be given by the State is the General Mining      Authorization Enterprise ( Kuasa Usaha Pertambangan Umum )  or      abbreviated (Kuasa Pertambangan Umum)  General Mining       Authorization,  which  covers  the general mining efforts (      usaha-usaha pertambangan umum : general survey, exploration, exploitation,      pengolahan ( treatment )  and pemurnian (purification),       transportation and selling.
  
    - Furthermore,      the State shall give the performance of the General Mining                ( Pengusahaan Pertambangan Umum) to the      holder of the Mining Authorization.   
  
    - Since      there are many various mining minerals, the State needs to determine the      categorization or grouping of such mining minerals and the performance of      such mining minerals.       
 
  
   Agung Supomo Suleiman
   Partner Law Firm Suleiman Agung & Co
   http://www.sacolaw.blogspot.com
   Email : agungsacolaw@telkom.net
   Mobile Phone : 0816830647