Corporate Law Firm In Jakarta

Here is The New Terms of Business and Legality of Mining Companies in Indonesia (Part 1)

adminbpl
HERE IS THE NEW TERMS OF BUSINESS AND LEGALITY OF MINING COMPANIES IN INDONESIA (PART 1)

“Mining Services Business License (IUJP) is a license granted to conduct mining services business activities”.

For business actors who want to have a company engaged in Mining Services in Indonesia at this time, should need to understand the important points especially the aspects related to Mining Services business after the new provisions in the field of Energy and Mineral Resources.

The Minister of Energy and Mineral Resources has issued Regulation of the Minister of Energy and Mineral Resources Number 34 of 2017 on Licensing in Mineral and Coal Mining (“Permen ESDM No. 34/2017”). With the issuance of Permen ESDM No. 34/2017, Regulation of the Minister of Energy and Mineral Resources No. 24 of 2012 on Amendment to Regulation of the Minister of Energy and Mineral Resources Number 28 of 2009 concerning Mineral and Coal Mining Business Operations (Permen ESDM No. 24/2012) has been declared revoked, null and void.

Permen ESDM No.24 / 2012 was formerly as the legal basis for the issuance of Certificate of Registered (SKT) Mining Services. SKT is the legality of the business license granted to Non-Core Mining Services Enterprises that conduct on-going activities at the mine site, for example management consulting services, etc.

However, with the enforcement of the Ministerial Regulation No.34 / 2017, SKT Mining Services as legality for non-core mining business activities has been declared null and void because the non-core mining service business field has been removed.

Permen ESDM No.34 / 2017 also regulates changes to certain business sectors which may have IUJP, whereby the business field is limited to certain supporting services activities only.

As for certain supporting services, such as consultation, planning and implementation are limited to general business investigation, exploration, feasibility study, mining construction, transportation, mining environment, post mining and reclamation, and occupational safety and health. As for consultation and limited planning in the field of mining business; or Processing and purification only.

These changes have implications for some businesses which formerly may carry out business activities as non-core mining support services companies such as management consulting services, suppliers and maintenance of Fire Extinguishers, Document Handling Services, Catering Services, etc. which are not regulated in Permen ESDM 34/2017 is no longer able to run business activities in the Mining Area with SKT Legality, but must get a Registration Receipt instead of SKT Non-Core Mining Services. Read also: HOW TO OBTAIN MINING SUPPORTING BUSINESS REGISTRATION RECEIPT?

What are the Types, Fields and Sub Fields of Mining Services?
Currently the types, fields and sub-fields of any kind that fall into the category of Mining Services business according to the Minister of Energy and Mineral Resources 34/2017 are as follows:

No.

Jenis

Bidang

Sub bidang

1.

Consulting, Planning, Implementation, and/or Equipment Testing

General investigation
  1. Reconnaissance
  2. Remote sensing
  3. Prospecting
2.

Consulting, Planning, Implementation, and/or Equipment Testing

Exploration
  1. Exploration management;
  2. Position determination;
  3. Topography mapping;
  4. Geology mapping;
  5. Geochemistry:
  6. Geophysic;
  7. Surveys below the surface;
  8. Geotechnical;
  9. Exploration drilling;
  10. Exploration collection;
  11. Resource and Reserve Calculations
3.

Consulting, Planning, Implementation, and/or Equipment Testing

Feasibility study
  1. EIA Preparation;
  2. Feasibility Study Preparation.
4.

Consulting, Planning, Implementation, and/or Equipment Testing

Mining Construction
  1. Tunneling;
  2. Cementing underground mines;
  3. Buffering underground mines;
  4. Shaft Sinking;
  5. Lighting system of land-carrying manganese;
  6. Digging, loading, and underground mining equipment;
  7. Drilling and Blasting;
  8. Workshop facilities;
  9. Mining commissioning;
  10. Facilities for management;
  11. Purification facilities;
  12. Mining road;
  13. Bridge;
  14. Port;
  15. Warehouse of Explosives;
  16. Liquid fuel storage facilities;
  17. Streaming system.
5.

Consulting, Planning, Implementation, and Equipment Testing

Processing and Purification
  1. Coal grinding;
  2. Coal washing;
  3. Coal mixing;
  4. Coal Quality Improvement;
  5. Coal briquette making;
  6. Liquefaction of coal;
  7. Coal gasification;
  8. Coal Water Mixer;
  9. Mineral Conservancy;
  10. Purification of Minerals;
  11. Minerals / Rocks Crushing.
6.

Consulting, Planning, Implementation, and Equipment Testing

Transportation
  1. Using trucks;
  2. Using Lorry;
  3. Using Belt Conveyor;
  4. Using barges;
  5. Using Pipe.
7.

Consulting, Planning, Implementation, and Equipment Testing

Mining Environment
  1. Environmental monitoring;
  2. RKL / RPL survey;
  3. Acid Water Management;
  4. Environmental audit of mining;
  5. Erosion Control.
8.

Consulting, Planning, Implementation, and Equipment Testing

Post-Mining and Reclamation
  1. Closure;
  2. Dismantling facilities;
  3. Land preparation and arrangement;
  4. Nurseries;
  5. Planting;
  6. Care.
9.

Consulting, Planning, Implementation, and Equipment Testing

Occupational Safety and Health
  1. Technical examination and testing;
  2. Safety and health audit of mining work;
10.

Consulting, Planning, Implementation, and Equipment Testing

Mining
  1. Stripping, loading and removal of soil / rock cover;
  2. Giving / unloading of soil / rock cover;
  3. Carriage of land, cover, coal, mineral ore;
  4. Mineral excavation (mineral getting);
  5. Coal excavation (coal getting)
11.

Implementation

Mining limited to soil/rock stripping

Excavation. Loading and removal of rock / ground cover with or without blasting
12.

Implementation

Alluvial mining

Excavation of alluvial mineral deposits

From the types, fields, subfields of business above, it is clear that there are some fields and sub-fields that used to exist, has been removed by Permen ESDM No. 4/2017. Therefore, it is important to know, so that we can determine what support services activities are categorized in the field of Mining Services business today.

We hope this article is useful.

BP Lawyers can help you: we can assist you in providing the best solution to the legal program of your business or your company’s.  You can contact us via bpl@smartlegal.id or +62821-1234-1235

Author :
Iskandar DP, SH / Ali Imron S.H.I