New Procedures Introduced for the Securing of WIUP and WIUPK for Metal Mineral and Coal Mining Activities

In a bid to increase investment within the mineral and coal mining sector, the Minister of Energy and Mineral Resources (“Minister”) recently issued Decree No. 258.K/MB.01/MEM.B/2023 (“Decree 258/2023”), which contains a set of guidelines for the designation of Mining Business License Areas (Wilayah Izin Usaha Pertambangan – “WIUP”) and Special Mining Business License Areas (Wilayah Izin Usaha Pertambangan Khusus – “WIUPK”) for metal mineral and coal mining activities.[1]

Decree 258/2023 has been in force since 18 August 2023 and will affect business actors working within the metal mineral and coal mining sector, specifically business actors who are aiming to secure certain WIUP or WIUPK. Furthermore, Decree 258/2023 also features a number of provisions that specifically address the procedure for the establishment of an Auction Committee for the securing of WIUP or WIUPK. The issuance of Decree 258/2023 has now repealed and replaced several previous procedural provisions which were set out under the following legal instruments:[2]

1. Appendix VIII (Guidelines for the Establishment of Memberships, Requirements, Duties and Authorities of the WIUP and WIUPK Auction Committee), as set out under Decree of the Minister No. 1798.K/30/MEM/2018 on Guidelines for the Organization of the Preparation, Stipulation and Issuance of WIUPK for Minerals and Coal (“Decree 1798/2018”); and
2. Appendix II (Guidelines for the Organization of Auctions for the Securing of WIUP and WIUPK for Metal Minerals and Coal), as set out under Decree of the Minister No. 24/K/30/MEM/2019 on the Amendment to Decree 1798/2018 (“Decree 24/2019”); and
3. Appendix III (Guidelines for the Organization of the Priority Issuance of WIUPK), as set out under Decree 24/2019.

It should be noted that Decree 258/2023 primarily sets out the various technical adjustments that have now been made to the above-listed provisions, while this edition of Indonesian Legal Brief (ILB) will limit its discussion to the following specific areas:

1. General Adjustments;
2. Procedures for the Securing of WIUPK by Priority; and
3. Procedures for the Securing of WIUP or WIUPK Through Auctions.

General Adjustments ......