- The deliberation process for the Draft Bill on Minerals and Coal (“Draft Bill”) reached its concluding stage when the Minister of Energy and Mineral Resources, Arifin Tasrif, held a work meeting with Commission VII of the House of Representatives (“DPR”) on 11 May 2020. The government and the DPR have now finally agreed to sign off on the Draft Bill, which will be further discussed at a forthcoming plenary meeting.
- In an attempt to improve and boost the management of minerals and coal within Indonesia, the following articles set out under the Draft Bill have been agreed upon: 1) Inter-sectoral problem settlements, which will be implemented through demarcation authorities; 2) Definitions of mining areas, which will require investigations and examination-related activities; 3) Granting of incentives for certain licenses (Mining-Business Licenses/Special Mining-Business Licenses/IUP-IUPK) which are integrated into purification facilities; 4) Reclamation and post-mining activities, which include the imposition of criminal sanctions upon any license holders who do not implement said activities; 5) Continuity of Contracts of Work (Kontrak Karya) or Coal-Mining Business Working Agreements (PKP2B) by taking into consideration increases in state revenue; 6) Accommodating decisions of the Constitutional Court as regards the determination of mining areas; 7) Strengthening the role of State-Owned Enterprises (BUMN); and so forth. (esdm.go.id)
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