National Policy on the Restriction of Mineral Mining

The government recognizes that Indonesia’s mineral resources are not a forever proposition and that these resources need to be managed to ensure optimal long-term returns in a manner that is efficient, transparent, and ongoing. It is expected that this national policy to restrict production will ensure that maximum prosperity is enjoyed by the citizens of Indonesia from the exploitation of their non-renewable mineral resources.

The basic premise of the Regulation, No. 25 of 2008, is to ensure not only that these non-renewable mineral resources are managed in an optimal way but also to ensure that they are managed in the national interest.

The Director General responsible for mineral resources is going to develop the national policy. This will be done in consultation with the relevant governors, regents, and mayors of the regions where mineral resources are exploited. The data that the national policy is going to be based on will be provided by concession holders and those with work contracts. The national policy is to also to be participative and conscious of the integration of the national interest with economic interests, socio-cultural interests, and environmental issues.

Once the national policy has been formulated by the Director General it is to be confirmed by the Minister. The national policy is valid for a period of five years. However, the national policy is subject to annual review.

The minerals that may be subject to mining restrictions are: tin, nickel, iron, gold, and copper.

Any breaches of the provisions of the national policy attract administrative sanctions. These sanctions include: written warnings, temporary suspension of business activities, and cancellation of concessions and contracts.

The Regulation has been in force since 5 August 2008.