In order to facilitate the implementation of Article 127 of Law No. 4 of 2009 on Mineral and Coal Mining, the Minister of Energy and Mineral Resources has issued Regulation No. 28 of 2009 on Mineral and Coal Mining Business Services. The regulation aims to assist the operation of mineral and coal mining while simultaneously providing opportunities in business services to drive local economies in and around the mining sites.
The entities that can engage in this business services are listed in Article 3. They include state owned enterprises, regional owned enterprises, private limited liability companies, and groups of individuals.
Business services in the mineral and coal mining sector cover activities relating to consultation, planning, realization, and equipment testing. These activities specifically concern matters in the fields of, among others, exploration, due diligence, distribution, work safety, and post-mining activities and reclamation.
The holders of a Mining Efforts License (IUP) and the Special Mining Efforts License (IUPK) are only to utilize mining services once their work plan has been approved by the relevant authorities (the Minister, Governor, or Regent / Mayor). The mining services are to be conducted by the National Mining Services Company and / or a Local Mining Services Company.
The regulation provides that any cooperation in mining services is to be defined in a work contract.
Furthermore, the regulation stipulates that these mining companies must have a business license, which is to be obtained from the relevant authorities. This license is then valid for 3 years and can be extended.
Mining service companies must fulfill certain obligations once they have obtained a business license. These obligations are listed in Article 23. These obligations include the duty to report to the relevant authorities quarterly and annually. The information that these reports must contain are enumerated in Article 24.
The regulation repeals and replaces the Minister of Mining Decisions No. 423/Kpts/M/Pertamb/1972, No. 211/Kpts/M/Pertamb/1978, and Article 1(3) and Attachment I – III of Decision No. 1453.K/29/MEM/2002.
The regulation has been in force since 30 September 2009.
In order to facilitate the implementation of Article 127 of Law No. 4 of 2009 on Mineral and Coal Mining, the Minister of Energy and Mineral Resources has issued Regulation No. 28 of 2009 on Mineral and Coal Mining Business Services. The regulation aims to assist the operation of mineral and coal mining while simultaneously providing opportunities in business services to drive local economies in and around the mining sites.
The entities that can engage in this business services are listed in Article 3. They include state owned enterprises, regional owned enterprises, private limited liability companies, and groups of individuals.
Business services in the mineral and coal mining sector cover activities relating to consultation, planning, realization, and equipment testing. These activities specifically concern matters in the fields of, among others, exploration, due diligence, distribution, work safety, and post-mining activities and reclamation.
The holders of a Mining Efforts License (IUP) and the Special Mining Efforts License (IUPK) are only to utilize mining services once their work plan has been approved by the relevant authorities (the Minister, Governor, or Regent / Mayor). The mining services are to be conducted by the National Mining Services Company and / or a Local Mining Services Company.
The regulation provides that any cooperation in mining services is to be defined in a work contract.
Furthermore, the regulation stipulates that these mining companies must have a business license, which is to be obtained from the relevant authorities. This license is then valid for 3 years and can be extended.
Mining service companies must fulfill certain obligations once they have obtained a business license. These obligations are listed in Article 23. These obligations include the duty to report to the relevant authorities quarterly and annually. The information that these reports must contain are enumerated in Article 24.
The regulation repeals and replaces the Minister of Mining Decisions No. 423/Kpts/M/Pertamb/1972, No. 211/Kpts/M/Pertamb/1978, and Article 1(3) and Attachment I – III of Decision No. 1453.K/29/MEM/2002.
The regulation has been in force since 30 September 2009.
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