“Registration receipt is needed as the base of legality in cooperating with mining license (IUP) and special mining license (IUPK) holders for mining supporting business which is not listed in mining service business license.”
Not long ago, there are some questions about the business in mining supporting business field. The questions are mainly asked by companies that are already engaged in mining supporting business or new companies that have plans to run mining supporting business. The question arises because there is a change of license previously known as Mining Certificate (SKT Minerba) to Registration Receipt. The basic questions asked to us related to the mining supporting business activities such as:
It is important to note that currently, 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. Read also: Here is The New Terms of Business and Legality of Mining Companies in Indonesia (Part 1)
Consequences of enactment of Permen ESDM No. 34/2017 is that SKT Minerba has changed its name to Mining Services Business License (IUJP). In addition, Permen ESDM No. 34/2017 also regulates changes in certain areas of business which need IUJP, whereby such business is limited to certain mining supporting business.
Article 21 of Permen ESDM No.34/2017 describes the business activities included in the scope of Mining Services Business License as follows:
“IUJP covers following activities:
- Consulting, planning, and implementation of:
- General investigation;
- Feasibility study;
- Mining construction;
- Mining environment;
- Post-mining and reclamation; and/or
- Occupational safety and health;
- Consulting and planning of:
- Mining; or
- Processing and purification.”
For companies engaged in mining supporting business other than those mentioned above, such as management consulting services and other business activities which are expressly excluded from mining services business in the Permen ESDM No.34 / 2017, still able to conduct business activities by cooperation in the mining supporting business, with the condition must have Registration Receipt.
Companies whose business activities are not included in the scope of IUJP are accommodated in Article 25 of Permen ESDM No. 34 / 2017 which the IUP and IUPK Holders may cooperate with other parties who have Registration Receipt announced by the Director General or the governor in accordance with the authority to conduct mining supporting business activities other than the activities referred to in Article 21.
How to obtain Registration Receipt?
According to the Permen ESDM No.34 / 2017 the requirement to obtain registration receipt, the applicant must submit several documents including:
- Application Letter;
- Permits from relevant institutions that are still valid (e.g. SIUP);
- Deeds of Establishment and Amendment (if there is any change);
- Company and Directors / Commissioners’ Tax ID.
While the requirements for registration marks of companies engaged in the transportation and sale of minerals or coal, there are at least 3 (three) stages, namely:
First, a letter of application using letterhead of a Business Entity / an individual company / cooperation which includes the address and telephone number and facsimile of the company, signed on stamp duty by the authorized directors / managers.
Second, the company is also required to provide information on the profile of the business entity by stating in the form of:
- Deed of establishment of Business Entity / individual company / cooperative and its authorization;
- Tax Identification Number (NPWP);
- Trading Business License (SIUP) / BKPM Permit for Foreign Investment;
- Company Registration Certificate (TDP);
- Certificate of domicile;
- List of the Board of Directors by Identity Card (KTP) and NPWP for Indonesian Citizen (WNI);
- copy of passport for Foreign Citizen (WNA); and / or
- list of shareholders;
Third, in addition to the above requirements, the company will be required to provide a statement of ability to comply with the provisions of the laws and regulations on taxation, finance and payment procedures using rupiah currency, as well as traffic and road transport both on land, sea, as well as in rivers for the transport of Minerals or Coal. Other areas are environmental protection and management as well as occupational safety and health.
Steps in applying for Registration
First, the company will submit the Registration to the Minister or the governor in accordance with its authority. Then the application officer will conduct the examination of the completeness of the registration documents.
Second, if, in the event that the documents are not in accordance with the requirements, then the application will be rejected and returned to the applicant. Whereas in the case of the application document is declared complete the document will be made the concept of Registration Letter.
Furthermore, the stages of the issuance of Registration by Registration Letters. It will be signed by the Technical and Environmental Director of Mineral and Coal, then the signed Registration Letter is announced through the website and submitted to the Business Entity.
We hope this article is useful.
Iskandar DP, SH/ Ali Imron, S.H.I