Securing a Permit for Utilizing Protected Forest Area for Underground Mining Activities

Presidential Regulation No. 28 of 2011 on  Utilization of Protected Forest Area for Underground Mining (“Regulation”) has been issued to implement Article 5 (2) of Government Regulation No. 24 of 2010 on the Forest Area Utilization.

Under Article 1 (1) of the Regulation, protected forest area is defined as: a forest area functioning as an environmental support system to prevent floods, control erosion, prevent saltwater intrusion, and maintain soil fertility.

Additionally, Article 1 (2) states that underground mining in protected forests is mining that is conducted below the soil. Underground mining is conducted by making a shaft, tunnel, and adit, including the facilities and infrastructure to support mining production in the protected forest.

Pursuant to Article 2 (2), underground mining are permitted as long as it does not affect the allotment and principal function of the protected forest. Underground mining, pursuant to Article 3 (1), should obtain approval from the Ministry of Forestry.

Under Article 4 of the Regulation, a permit application for underground mining permit in a protected forest can only be submitted by head of an Indonesian legal entity which have secured a mining activity permit.

The application, pursuant to Article 5 (2), should contain a feasibility study; environmental impact analysis (Analisis Mengenai Dampak Lingkungan/AMDAL); regent or mayor and governor recommendation; technical consideration from the state-owned company that is responsible for the protected forest area; protected forest utilization plan and work plan; mining permit; an authentic written statement made before a public notary to fulfill the obligation and cost of the borrow and use permit application.

Pursuant to Article 9, the borrow-use permit holder has the obligations to, for example:

Pursuant to Article 12, the Minister of Forest could establish a team to monitor and evaluate utilization of protected forest area.

The Regulation has been in force since 19 May 2011.