Professional Documents
Culture Documents
No. 1. 2. Title
Difference
Previous Law Principal Stipulations of Mining. Mining object defined as extractive material. (Article 1 and Article 2 point a) The extractive material is controlled by the State. (Article 1)
New Law Mineral and Coal Mining. Mining object defined as Mineral and Coal. (Article 1)
3.
4.
ii)
mining;
Metal mineral
c) Other
(Article 3)
iii)
b) Coal mining.
(Article 34) 5. Management Authorization Division between Government and Regional Government Divided according to the extractive material: Divided according to the area:
a) Government/Minister manages
the strategic extractive material class and vital extractive material class. (Article 4 point 1)
a) The
Government is authorized to manage mining and coal mining across province and/or sea area of more than 12 mile from the shoreline. (Article 6)
b) Provincial
Regional Government manages the other extractive material besides strategic and vital classes. (Article 4 point 2)
b) The
Provincial Regional Government is authorized to manage mineral and coal mining across regency/city and or sea area of between 4 mile to 12 mile. (Article 7)
sea area up to 4 mile. (Article 8) 6. Mining Area Division It is not stipulated in details, but limited to not include: Mining Area is part of national layout, consists of:
(Article 10 and Article 15) 8. Mining Stages Consists of 6 stages, which resulted 6 level of Kuasa Pertambangan (KP), as follows: Consists of 2 stages, which resulted 2 level of Izin Usaha Pertambangan (IUP):
a) Exploration
or Eksplorasi, which consists of: i) general survey or penyelidikan umum; ii) exploration or eksplorasi; and iii)feasibility study or studi kelayakan; Operation or Operasi Produksi, which consists of: i) Construction or Konstruksi; ii) Mining or Penambangan; iii)Processing & Refining or pengolahan & pemurnian; iv) Transportation and sales or pengangkutan dan penjualan.
e) Transportation
Pengangkutan; and
or
b) Production
f) Sales or Penjualan.
(Article 14)
(Article 36) 9. Area License Distribution Procedure Mining area determined in the licenses (KK, KP, SIPD, etc) given by way of filing application with the authorizer.
and service. (Article 106) - Utilization of local entrepreneurs: obligated to involve the local entrepreneurs in conducting production operation activity. (Article 107) - Community development and empowerment program: obligated to arrange a community development and empowerment program. (Article 108) - Utilization of local and/or domestic mining service company: obligated to use local and/or domestic mining service company. 12. Divestment Not stipulated. After 5 years operation, the legal entity holder of the IUP and IUPK which shares owned by foreigner, is obligated to conduct divestment to the Government, Regional Government, BUMN, BUMD or domestic private legal entity. (Article 112)
13.
15.
a) Police or POLRI
investigator;
b) PPNS investigator. 4
(Article 149) 16. Criminal and/or Administrative Sanctions for Mining Subject
transportation, sales of mineral and coal not from holder of IUP or IUPK, shall be punished by jail in the maximum of 10 years and fined in the maximum of 10 Billion Rupiah. (Article 161)