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Ada Pertanyaan? Hubungi Kami
Ari Pramuditya, Kartini L. Makmur
(rfs/sp)
Ministry of ESDM Building. Photo by: RES
On 30 December 2015, the Ministry of Energy and Mineral Resources (Minister of ESDM) finally redefined the provision relating to the Clean and Clear (CnC) status that must be secured by mining companies through Minister Regulation No. 43 of 2015 on the Evaluation Procedure for the Issuance of Minerals and Coal-Mining Licenses (2015 Regulation). Through this Regulation, a governor now has the authority to review the CnC status, as well as the Mining Business License (Izin Usaha Pertambangan – IUP), of any mining company that falls within their jurisdiction.
Bambang Gatot Ariyono, Director General of Minerals and Coal at the Ministry of ESDM, explained that the authority of a governor to review CnC and IUP statuses is in accordance with Law No. 9 of 2015on Local Government (Local Government Law). Under the Local Government Law, a regent/mayor no longer possesses the authority to issue or revoke an IUP. Instead, a local governor has the authority to review a CnC status or revoke a mining company’s IUP if the company fails to comply with the prevailing regulations.
“Thus central government is now waiting for governors to act in order to control illegal mining and bring companies not in possession of CnC status into line,” explained Mr. Ariyono on Thursday, 14 January 2016.
Mr. Ariyono added that, based on data supplied by the Ministry of ESDM, there were currently more than 10,000 IUPs spread throughout Indonesia. However, only about 6,500 IUP holders have already secured the necessary CnC status, while the remaining enterprises still lack this designation. According to Mr. Ariyono, the 2015 Regulation offers a chance for non-CnC mining companies to obtain CnC status.
In order to secure CnC status, a mining company must first meet several criteria, as set out in Article 5 (2) of the 2015 Regulation. Firstly, an IUP application or mining-concession amendment (kuasa pertambangan) must be submitted. Secondly, a mining concession in the exploitation stage should follow up and move into the exploration stage.
Unlisted companies are not allowed to take possession of more than one IUP or mining concession. Moreover, unlisted companies currently in possession of more than one mining concession must undergo additional processing. Also, if an unlisted mining company is currently in possession of two or more adjacent mining areas, then the government will only issue one IUP covering all of the relevant mining areas. Meanwhile, if the mining areas are separated and not adjacent, then the government will grant the necessary IUP to a new business entity. However, the original mining company will become majority shareholders in the new business entity.
The 2015 Regulation also requires IUP holders to report their current mining-activity stages in order to secure CnC status. Furthermore, an environmental document approved by the relevant authorities is also required.
With regard to financial administration, IUP holders currently at the exploration stage must enclose a levy-payment receipt prior to submitting application for CnC status. Meanwhile, IUP holding companies at the operational stage must submit a royalty-payment receipt. However, if the holder of an IUP for the operational stage has not yet engaged in any sales activity, then the company is only required to enclose a fixed-levy payment receipt, as well as a local government certificate.
“Local governments then have 90 days in which to carry out a CnC review of an IUP,” Mr. Ariyono concluded.
Bambang Gatot Ariyono, Director General of Minerals and Coal at the Ministry of ESDM, explained that the authority of a governor to review CnC and IUP statuses is in accordance with Law No. 9 of 2015on Local Government (Local Government Law). Under the Local Government Law, a regent/mayor no longer possesses the authority to issue or revoke an IUP. Instead, a local governor has the authority to review a CnC status or revoke a mining company’s IUP if the company fails to comply with the prevailing regulations.
“Thus central government is now waiting for governors to act in order to control illegal mining and bring companies not in possession of CnC status into line,” explained Mr. Ariyono on Thursday, 14 January 2016.
Mr. Ariyono added that, based on data supplied by the Ministry of ESDM, there were currently more than 10,000 IUPs spread throughout Indonesia. However, only about 6,500 IUP holders have already secured the necessary CnC status, while the remaining enterprises still lack this designation. According to Mr. Ariyono, the 2015 Regulation offers a chance for non-CnC mining companies to obtain CnC status.
In order to secure CnC status, a mining company must first meet several criteria, as set out in Article 5 (2) of the 2015 Regulation. Firstly, an IUP application or mining-concession amendment (kuasa pertambangan) must be submitted. Secondly, a mining concession in the exploitation stage should follow up and move into the exploration stage.
Unlisted companies are not allowed to take possession of more than one IUP or mining concession. Moreover, unlisted companies currently in possession of more than one mining concession must undergo additional processing. Also, if an unlisted mining company is currently in possession of two or more adjacent mining areas, then the government will only issue one IUP covering all of the relevant mining areas. Meanwhile, if the mining areas are separated and not adjacent, then the government will grant the necessary IUP to a new business entity. However, the original mining company will become majority shareholders in the new business entity.
The 2015 Regulation also requires IUP holders to report their current mining-activity stages in order to secure CnC status. Furthermore, an environmental document approved by the relevant authorities is also required.
With regard to financial administration, IUP holders currently at the exploration stage must enclose a levy-payment receipt prior to submitting application for CnC status. Meanwhile, IUP holding companies at the operational stage must submit a royalty-payment receipt. However, if the holder of an IUP for the operational stage has not yet engaged in any sales activity, then the company is only required to enclose a fixed-levy payment receipt, as well as a local government certificate.
“Local governments then have 90 days in which to carry out a CnC review of an IUP,” Mr. Ariyono concluded.
(rfs/sp)
Ari Pramuditya, Kartini L. Makmur
(rfs/sp)
Ministry of ESDM Building. Photo by: RES
On 30 December 2015, the Ministry of Energy and Mineral Resources (Minister of ESDM) finally redefined the provision relating to the Clean and Clear (CnC) status that must be secured by mining companies through Minister Regulation No. 43 of 2015 on the Evaluation Procedure for the Issuance of Minerals and Coal-Mining Licenses (2015 Regulation). Through this Regulation, a governor now has the authority to review the CnC status, as well as the Mining Business License (Izin Usaha Pertambangan – IUP), of any mining company that falls within their jurisdiction.
Bambang Gatot Ariyono, Director General of Minerals and Coal at the Ministry of ESDM, explained that the authority of a governor to review CnC and IUP statuses is in accordance with Law No. 9 of 2015on Local Government (Local Government Law). Under the Local Government Law, a regent/mayor no longer possesses the authority to issue or revoke an IUP. Instead, a local governor has the authority to review a CnC status or revoke a mining company’s IUP if the company fails to comply with the prevailing regulations.
“Thus central government is now waiting for governors to act in order to control illegal mining and bring companies not in possession of CnC status into line,” explained Mr. Ariyono on Thursday, 14 January 2016.
Mr. Ariyono added that, based on data supplied by the Ministry of ESDM, there were currently more than 10,000 IUPs spread throughout Indonesia. However, only about 6,500 IUP holders have already secured the necessary CnC status, while the remaining enterprises still lack this designation. According to Mr. Ariyono, the 2015 Regulation offers a chance for non-CnC mining companies to obtain CnC status.
In order to secure CnC status, a mining company must first meet several criteria, as set out in Article 5 (2) of the 2015 Regulation. Firstly, an IUP application or mining-concession amendment (kuasa pertambangan) must be submitted. Secondly, a mining concession in the exploitation stage should follow up and move into the exploration stage.
Unlisted companies are not allowed to take possession of more than one IUP or mining concession. Moreover, unlisted companies currently in possession of more than one mining concession must undergo additional processing. Also, if an unlisted mining company is currently in possession of two or more adjacent mining areas, then the government will only issue one IUP covering all of the relevant mining areas. Meanwhile, if the mining areas are separated and not adjacent, then the government will grant the necessary IUP to a new business entity. However, the original mining company will become majority shareholders in the new business entity.
The 2015 Regulation also requires IUP holders to report their current mining-activity stages in order to secure CnC status. Furthermore, an environmental document approved by the relevant authorities is also required.
With regard to financial administration, IUP holders currently at the exploration stage must enclose a levy-payment receipt prior to submitting application for CnC status. Meanwhile, IUP holding companies at the operational stage must submit a royalty-payment receipt. However, if the holder of an IUP for the operational stage has not yet engaged in any sales activity, then the company is only required to enclose a fixed-levy payment receipt, as well as a local government certificate.
“Local governments then have 90 days in which to carry out a CnC review of an IUP,” Mr. Ariyono concluded.
Bambang Gatot Ariyono, Director General of Minerals and Coal at the Ministry of ESDM, explained that the authority of a governor to review CnC and IUP statuses is in accordance with Law No. 9 of 2015on Local Government (Local Government Law). Under the Local Government Law, a regent/mayor no longer possesses the authority to issue or revoke an IUP. Instead, a local governor has the authority to review a CnC status or revoke a mining company’s IUP if the company fails to comply with the prevailing regulations.
“Thus central government is now waiting for governors to act in order to control illegal mining and bring companies not in possession of CnC status into line,” explained Mr. Ariyono on Thursday, 14 January 2016.
Mr. Ariyono added that, based on data supplied by the Ministry of ESDM, there were currently more than 10,000 IUPs spread throughout Indonesia. However, only about 6,500 IUP holders have already secured the necessary CnC status, while the remaining enterprises still lack this designation. According to Mr. Ariyono, the 2015 Regulation offers a chance for non-CnC mining companies to obtain CnC status.
In order to secure CnC status, a mining company must first meet several criteria, as set out in Article 5 (2) of the 2015 Regulation. Firstly, an IUP application or mining-concession amendment (kuasa pertambangan) must be submitted. Secondly, a mining concession in the exploitation stage should follow up and move into the exploration stage.
Unlisted companies are not allowed to take possession of more than one IUP or mining concession. Moreover, unlisted companies currently in possession of more than one mining concession must undergo additional processing. Also, if an unlisted mining company is currently in possession of two or more adjacent mining areas, then the government will only issue one IUP covering all of the relevant mining areas. Meanwhile, if the mining areas are separated and not adjacent, then the government will grant the necessary IUP to a new business entity. However, the original mining company will become majority shareholders in the new business entity.
The 2015 Regulation also requires IUP holders to report their current mining-activity stages in order to secure CnC status. Furthermore, an environmental document approved by the relevant authorities is also required.
With regard to financial administration, IUP holders currently at the exploration stage must enclose a levy-payment receipt prior to submitting application for CnC status. Meanwhile, IUP holding companies at the operational stage must submit a royalty-payment receipt. However, if the holder of an IUP for the operational stage has not yet engaged in any sales activity, then the company is only required to enclose a fixed-levy payment receipt, as well as a local government certificate.
“Local governments then have 90 days in which to carry out a CnC review of an IUP,” Mr. Ariyono concluded.
(rfs/sp)