Beruflich Dokumente
Kultur Dokumente
CONCERNING
1
d. that pursuant to considerations as referred to in item 1, item b,
be created;
In view of: Article 5 clause (1), Article 20 and Article 33 clause (2) and clause (3) of the
and
HEREBY RESOLVES
CHAPTER I
GENERAL TERMS
Article 1
As defined herein:
1. Mining shall be part or all phases of activity in the context of research, management,
study, construction, mining, processing and refining, transportation and sales, and
post-mining activities.
2. Mineral shall be inorganic compound formed in nature, which has specific physical
plants.
2
4. Mineral Mining shall be mining of a collection of minerals in form of ore or rock,
other than geothermal, petroleum and natural gas, and ground water.
5. Coal Mining shall be mining of carbon sediment located in the earth, including
6. Mining business shall the activities in the context of research, management, and
study, construction, mining, processing and refining, transportation and sales, and
post-mining activities.
7. Mining Business Permit, hereinafter the Mining Business Permit (Izin Usaha
granted to execute the activity of genera survey, exploration, and feasibility study.
10. People's Mining Permit, hereinafter People's Mining Business Permit (Izin
11. Special Mining Business Permit, hereinafter Special Mining Business Permit (Izin
12. Exploration Special Mining Business Permit (IUPK Eksplorasi) shall be a business
permit granted to execute the phase of activity of general survey, exploration, and
3
13. Production Operation Special Mining Business Permit (IUPK Operasi Produksi)
14. General Survey shall be the phase of activities of mining to find regional geology
15. Exploration shall be the phase of mining business activity to find detailed and
environment.
16. Feasibility study shall be the phase of mining business activities to find detailed
information about all related aspects to find economy and technical feasibility of
planning.
17. Production Operation shall be the phase of mining business activities covering
19. Mining shall be part of mining business activities to produce mineral and /or coal
20. Processing and refining shall be mining business activities to improve the quality
of mineral and /or coal and to use and gain trace minerals.
4
21. Transportation shall be a mining business activity to move minerals and /or coal
from the mine site and or processing and refining site to delivery site.
22. Sales shall be a mining business activity to sell the product of mineral or coal
mining.
23. Business Entity shall be every legal entity running business in mining established
based on Indonesian law and is domiciled within the territory of the Unitary State
24. Mining Service shall be a support service relate do the mining business activities.
about major and significant impact of a business and /or activity planned on an
26. Reclamation shall be an activity conducted during the phase of mining business to
arrange, recover, and fix environment and ecosystem quality to allow them to
27. Post mining activity, hereinafter post mining, shall be a planned, systematic, and
sustainable activity after the end of part or all of mining business activities to
29. Mining Area, herein after Mining Area (Wilayah Pertambangan /WP) shall be areas
which have mineral and /or coal potential which are not bound by government
5
30. Mining Business Area, hereinafter Mining Business Area (Wilayah Usaha
/WP) which has obtained availability of data, potential, and /or geology
information.
31. Mining Business Permit Area, hereinafter Mining Business Permit Area (Wilayah
Izin Usaha Pertambangan /WIUP) shall be areas granted for the holder of Mining
32. People's Mining Area, hereinafter People's Mining Area (Wilayah Pertambangan
Rakyat /WPR) shall be part of the Mining Area (Wilayah Pertambangan /WP) where
33. State Reserve Area, hereinafter State Reserve Area (Wilayah Pencadangan Negara
/WPN) shall be part of Mining Area (Wilayah Pertambangan /WP) reserved for
34. Special Mining Business Area, hereinafter Special Mining Business Area (Wilayah
35. Special Mining Business Permit Area, hereinafter Special Mining Business Permit
Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) shall be areas granted for
Khusus/IUPK).
36. The Central Government, hereinafter the Government, shall be the President of
the Republic of Indonesia who holds the power of Governance of the State of the
6
37. The regional government shall be the governor, bupati (regent), or mayor, and
38. The minister shall be the minister who administers government affairs in the
CHAPTER II PRINCIPLE
AND OBJECTIVE
Article 2
Mineral and /oar coal mining shall be managed under the principle of:
Article 3
c. . to guarantee availability of mineral and coal as raw materials and /or source of
7
e. to increase the income of local, regional community, and the state, and to create job
activities.
CHAPTER III
Article 4
(1) Mineral and coal as non-renewable natural resource is a national asset possessed by
(2) Possession of mineral and coal by the state as referred to in clause (1) shall be under
Article 5
(1) For national interest, the Government, after a consult with the House of
(2) The national interest as referred to in clause (1) can be made by control of
(3) In running the control as referred to in clause (2) the Government holds the
authority to define production amount of each commodity per year for each
province.
(4) The regional government shall comply with the defined amount stipulated by the
8
(5) Further provisions concerning prioritizing of mineral and /or coal for domestic
interest as referred to in clause (1) and control of production and export as referred
CHAPTER IV
Article 6
(1) The Government's Authority in management of mineral and coal mining among
c. creation of laws;
coordination with the local government and consult with the House of
location is crossing province and /or ocean areas exceeding 12 (twelve) miles
mining location is within province and /or ocean areas exceeding 12 (twelve)
9
h. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,
business which direct environment impact is crossing province and /or ocean areas
m. formulation and stipulation of non-tax state income from mineral and coal mining
business revenue;
data and information on mineral and coal as the materials to devise (Wilayah Usaha
Pertambangan Khusus /WUPK) and State Reserve Area (Wilayah Pencadangan Negara
/WPN);
10
t. development and improvement of added value of mining business activities; and
Article 7
(1) The regional government's authority in management of mineral and coal mining
11
g. devise of mineral and coal resource balance at provincial region/ area level;
the province;
business management.
(2) The provincial government's authority as referred to in clause (1) shall be exercised
Article 8
12
conflict, and supervision of mining business within the area of the regency
level;
/municipality level;
activities optimally;
13
l. improvement of the capability of the apparatus of the regency (kabupaten)
in clause (1) shall be exercised pursuant to the provisions of laws and legislations.
CHAPTER V
MINING AREA
Article 9
(1) The Mining Area (Wilayah Pertambangan /WP) as a part of national space planning
(2) The Mining Area (Wilayah Pertambangan /WP) as referred to in clause (1) shall be
Article 10
institutions, the people, and by considering the aspects of ecology, economy, and
Article 11
The government and the regional government shall conduct survey and research of
14
Article 12
government regulation.
Article 13
Section Two
Article 14
(1) Stipulation of a (Wilayah Usaha Pertambangan Khusus /WUPK) shall be made by the
Government after a consult with the regional government and submitted in writing
(2) The coordination as referred to in clause (1) shall be conducted by the respective
regional government conforming to data and information the Government and the
Article 15
The Government may delegate part of its authority in stipulation of a Mining Area
Article 16
15
One (Wilayah Usaha Pertambangan Khusus /WUPK) shall consist of 1 (one) ore more
of the kabupaten (regency) /municipality, and /or within 1 (one) kabupaten (regency)
/municipality area.
Article 17
Size and limit of Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
Khusus/WIUPK) for metal and coal materials shall be stipulated by the Government
under coordination with the regional government based on criteria the Government
possesses.
Article 18
The criteria to stipulate 1 (one) or more Special Mining Business Permit Areas (Wilayah
a. geographical location;
b. conservation rules;
Article 19
Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) as referred to in
Section Three
16
People's Mining Area (Wilayah
Article 20
Article 21
The People's Mining Area (Wilayah Pertambangan Rakyat /WPR) as referred to in Article
20 shall be stipulated by the bupati (regent) /mayor after a consult with the Legislative
Kabupaten /Kota).
Article 22
The criteria for stipulation of a People's Mining Area (Wilayah Pertambangan Rakyat
a. it has a secondary mineral reserve located in a river and /between river banks;
meters;
d. maximum People's Mining Area (Wilayah Pertambangan Rakyat /WPR) size shall be
25 (twenty-five) hectares;
f. it is an area or location of people's mine activity which has been exploited for at
Article 23
17
In stipulation of a People's Mining Area (Wilayah Pertambangan Rakyat /WPR) as
referred to in Article 21, the bupati (regent) /mayor shall make an announcement
concerning the People's Mining Area (Wilayah Pertambangan Rakyat /WPR) plan to the
public openly.
Article 24
The location or area of People's Mining Area (Wilayah Pertambangan Rakyat /WPR)
which has been exploited but not yet stipulated as a People's Mining Area (Wilayah
Article 25
/municipality.
Section Four
Article 27
(1) For national strategic interest, the Government, with approval of the House of
and stipulating the State Reserve Area (Wilayah Pencadangan Negara /WPN) as an
18
area reserved for specific commodity and conservation area in the context of
(2) Part area size of a State Reserve Area (Wilayah Pencadangan Negara /WPN) stipulated
(3) A time limit for the State Reserve Area (Wilayah Pencadangan Negara /WPN)
(4) The area which will be exploited as referred to in clause (2) and clause (3) will
change status into a Special Mining Business Area (Wilayah Usaha Pertambangan
Khusus /WUPK).
Article 28
The change of status of a State Reserve Area (Wilayah Pencadangan Negara /WPN) as
referred to in Article 27 clause (2), clause (3), and clause (4) into a Special Mining
considering:
Article 29
19
(1) The Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) as
(2) Execution of mining business activities in the Special Mining Business Area
Khusus/IUPK).
Article 30
One Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) shall
consist of 1 (one) ore more Special Mining Business Permit Areas (Wilayah Izin Usaha
crossing territory of the kabupaten (regency) /municipality, and /or within 1 (one)
Article 31
Size and limit of the Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK) for metal and coal materials shall be stipulated by the
Government under coordination with the regional government based on criteria and
Article 32
The criteria to stipulate 1 (one) or more Special Mining Business Permit Areas (Wilayah
a. geographical location;
b. conservation rules;
20
c. environment protection bearing capacity;
Article 33
regulation.
CHAPTER VI
MINING BUSINESS
Article 34
b. coal mining
(2) The mineral mining as referred to in clause (1) item a is categorized into:
d. rock mining.
regulation.
Article 35
21
a. Mining Business Permit (Izin Usaha Pertambangan/IUP);
CHAPTER VII
Section One
General
Article 36
(1) Mining Business Permit (Izin Usaha Pertambangan/IUP) comprises of two phases:
(2) The holder of the Exploration Mining Business Permit (IUP Eksplorasi) and
Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) may
Article 37
a. the bupati /mayor if the Mining Business Permit Area (Wilayah Izin Usaha
/municipality;
b. the governor, if the Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
22
province after a recommendation from the respective bupati (regent) /mayor
c. b. the Minister, if the Mining Business Permit Area (Wilayah Izin Usaha
Article 38
The Mining Business Permit (Izin Usaha Pertambangan/IUP) can be awarded to:
a. a business entity;
b. a cooperative; and
c. an individual.
Article 39
(1) The Exploration Mining Business Permit (IUP Eksplorasi) as referred to in Article 36
d. surety bond;
e. investment capital;
g. rights and obligations of the holder of the Mining Business Permit (Izin Usaha
Pertambangan/IUP);
23
j. plan for development and empowerment of the community in the vicinity of
k. taxation;
l. settlement of dispute;
(2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) as
b. size of area;
c. location of mining;
f. investment capital;
Pertambangan/IUP);
m. rights and obligations of the holder of the Mining Business Permit (Izin Usaha
Pertambangan/IUP);
24
n. plan for development and empowerment of the community in the vicinity of
o. taxation;
p. non tax state income comprises of fixed fee and production fee;
q. settlement of dispute;
technology;
Article 40
Article 36 clause (1) shall be granted for 1 (one) type of mineral or coal.
(2) The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred
to in clause (1) who discovers other minerals in the managed Mining Business
Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) shall be given priority for
exploitation thereof.
(3) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) who
intends to exploit other minerals as referred to in clause (2) shall submit a new
the governor, the bupati (regent) /mayor in accordance with their authority.
25
(4) The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred
to in clause (2) may state his /her unwillingness to exploit the other minerals
discovered.
(5) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) who is
not willing to exploit the other minerals discovered as referred to in clause (4),
(6) The Mining Business Permit (Izin Usaha Pertambangan/IUP) for the other mineral
as referred to in clause (4) and (5) may be granted to another party by the
Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority.
The Mining Business Permit (Izin Usaha Pertambangan/IUP) shall not be used for
purpose other than intended in the grant of the Mining Business Permit (Izin Usaha
Pertambangan/IUP).
Section Two
Article 42
(1) The Exploration Mining Business Permit (IUP Eksplorasi) for metal mineral mining
(2) The Exploration Mining Business Permit (IUP Eksplorasi) for non metal mineral
mining may be granted for a maximum period of 3 (three0 Years and specific non
(3) The Exploration Mining Business Permit (IUP Eksplorasi) for rock mineral mining
26
(4) The Exploration Mining Business Permit (IUP Eksplorasi) for coal mineral mining
Article 43
(1) In case of the activity of exploration and the activity of feasibility study, the holder
of the Exploration Mining Business Permit (IUP Eksplorasi) who obtains excavated
mineral or coal shall submit a report to the grantor of the Mining Business Permit
(2) The holder of the Exploration Mining Business Permit (IUP Eksplorasi) intending to
sell the mineral or coal as referred to in clause (1) shall propose for a temporary
Article 44
The temporary permit as referred to in Article 43 clause (2) shall be granted by the
Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority.
Article 45
To the excavated mineral or coal as referred to in Article 43, a production fee may be
imposed.
Section Three
Article 46
27
(2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
bid of a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for
metal or coal mineral which have obtained data of the result of feasibility study.
Article 47
(1) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
for metal mineral mining may be granted for a maximum period of 20 (twenty)
(2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
for non metal mineral mining may be granted for a maximum period of 10 (ten)
(3) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
for non specific type of metal mineral mining may be granted for a maximum
period of 20 (twenty) years and may be extended twice, respectively for 10 (ten)
years. ,
(4) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
for rock mining may be granted for a maximum period of 5 (five) years and may be
(5) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
for coal mining may be granted for a maximum period of 20 (twenty) years and
Article 48
The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) is
granted by:
28
a. the bupati (regent)/mayor if the location of mining, the location of processing and
b. the governor, if the if the location of mining, the location of processing and refining,
c. the MInister, if the if the location of mining, the location of processing and refining,
and seaport is in the territory of another province after a recommendation from the
legislations.
Article 49
Section Four
Mineral Mining
Paragraph 1
Article 50
The Mining Business Area (Wilayah Usaha Pertambangan /WUP) for radioactive minerals
Paragraph 2
29
Metal Mineral Mining
Article 51
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for metal
bid.
Article 52
(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for metal
mineral shall be granted a Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan /WIUP) with minimum size of 5,000 (five thousand hectares) and a
(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for metal
mineral has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP)
separate.
(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in
clause (2) shall be made after considering opinions from the first holder of a Mining
Article 53
The holder of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) for metal mineral shall be granted a Mining Business Permit Area (Wilayah
Izin Usaha Pertambangan /WIUP) for a maximum size of 25,000 (twenty-five thousand)
hectares.
Paragraph 3
30
Article 54
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for non
through a proposal for an area to the grantor of permit as referred to in Article 37.
Article 55
(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for non metal
mineral shall be granted a Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan /WIUP) with minimum size of 500 (five hundred hectares) and a
(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for non
metal minerals has been granted, a Mining Business Permit (Izin Usaha
discovery is separate.
(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in
clause (2) shall be made after considering opinions from the first holder of a Mining
Article 56
The holder of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) of non metal mineral shall be granted a Mining Business Permit Area (Wilayah
Izin Usaha Pertambangan /WIUP) for a maximum size of 5,000 (five thousand) hectares.
Paragraph 4
Rock Mining
Article 57
31
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for rock
Article 58
(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for rock shall be
granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP)
with minimum size of 5 (five hectares) and a maximum of 5,000 (five thousand)
hectares.
(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for rock
has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be
(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in
clause (2) shall be made after considering opinions from the first holder of a Mining
Article 59
The holder of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) for rock shall be granted a Mining Business Permit Area (Wilayah Izin Usaha
Section Five
Coal Mining
Article 60
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for coal
32
Article 61
(1) The holder of Exploration Mining Business Permit (IUP Eksplorasi) for coal shall be
granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP)
with minimum size of 5,000 (five thousand hectares) and a maximum of 50,000
(2) On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for coal
has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be
(3) The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in
clause (2) shall be made after considering opinions from the first holder of a Mining
Article 62
The holder of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) for coal shall be granted a Mining Business Permit Area (Wilayah Izin Usaha
Article 63
Further provisions concerning procedure to obtain the Mining Business Permit Area
(Wilayah Izin Usaha Pertambangan /WIUP) as referred to in Article 51, Article 54, Article
CHAPTER VIII
Article 64
The government and the local government, in accordance with their authority shall
announce the plan of the mining business activities in the Mining Business Permit Area
33
(Wilayah Izin Usaha Pertambangan /WIUP) as referred to in Article 16 and grant the
Exploration Mining Business Permit (IUP Eksplorasi) and Production Operation Mining
Business Permit (IUP Operasi Produksi /IUPOP) as referred to in Article 36 to the public
openly.
Article 65
(1) The business entity, cooperative, and individual, as referred to in Article 51, Article
54, Article 57, and Article 60 mining a mining business shall be obliged to meet
government regulation.
CHAPTER IX
Article 66
d. coal mining.
Article 67
(1) The bupati (regent) /mayor grants the People's Mining Business Permit (Izin
34
(2) The bupati (regent) /mayor may delegate the authority of execution of grant of
clause (1) to the chief of subdistrict (camat) pursuant to the provisions of laws and
legislations.
(3) To obtain the People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) as
referred to in clause (1), the applicant shall submit a proposal to the bupati
(regent) /mayor.
Article 68
(1) The size of area for 1 (one) People's Mining Business Permit (Izin Pertambangan
(2) The People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall be given
Article 69
The holder of a People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall
be entitled to:
a. get an assistance and supervision in work safety and health, the environment
mining engineering, and management from the government and /or regional
government; and
b. receive capital aid in accordance with the provisions of laws and legislations.
Article 70
The holder of a People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall:
35
a. execute mining activities no later than 3 (three) months after the People's Mining
b. comply with the provisions of laws and legislations in work safety and health in
Article 71
(1) As addition to matters as referred to in Article 70, the holder of a People's Mining
Article 72
Article 73
36
a. work safety and health;
c. post mining.
(3) To execute technical safeguarding as referred to in clause (2), the government of the
production of all people's mining business activities in its region and shall report
CHAPTER X
Article 74
(1) A Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be
(2) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as
referred to in clause (1) shall be granted for 1 (one) type of mineral or coal in 1 (one)
Khusus/WIUPK).
(3) The holder of a Special Mining Business Permit (Izin Usaha Pertambangan
managed Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
37
(4) The holder of the Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) who intends to exploit other minerals as referred to in clause (2) shall
(5) The holder of a Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) as referred to in clause (2) may state his /her unwillingness to exploit
(6) The holder of the Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) who is not willing to exploit the other minerals discovered as referred
to in clause (4), shall safeguard the other mineral to prevent utilization by other
party.
(7) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) for the
other mineral as referred to in clause (4) and (5) may be granted to another party by
the Minister.
Article 75
(1) The grant of Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)
(2) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as
referred to in clause (1) may be granted to a business entity which has Indonesian
legal entity, be it in form of a state owned legal entity, a regional owned legal entity,
38
(3) The state owned business entity and regional owned business entity as referred to
in paragraph (2) shall be given priority in obtaining the Special Mining Business
(4) For the private business entity as referred to in clause (2), obtaining a Special
through bid of a Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK).
Article 76
(1) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)
(2) The holder of the Exploration Special Mining Business Permit (IUPK Eksplorasi) and
Production Operation Special Mining Business Permit (IUPK Operasi Produksi) may
Article 77
39
(1) Every holder of a Exploration Special Mining Business Permit (IUPK Eksplorasi) is
(2) The Production Operation Special Mining Business Permit (IUPK Operasi Produksi)
to in Article 75 clause (3) and clause (4) which has obtained the data of result of
feasibility study.
Article 78
d. surety bond;
e. investment capital;
g. rights and obligations of the holder of the Special Mining Business Permit (Izin
j. plan for development and empowerment of the community in the vicinity of the
mining area;
k. taxation;
40
m. fixed fee and exploration fee; and
Article 79
The Production Operation Special Mining Business Permit (IUPK Operasi Produksi) as
b. size of area;
c. location of mining;
f. investment capital;
k. duration of validity of the Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK);
Khusus/IUPK);
area;
o. taxation;
41
p. fixed fee and production fee and state /regional income portion, comprises of profit
q. settlement of dispute;
capability;
and
y. divestment of shares
Article 80
The Mining Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)
shall not be used for purpose other than intended in the grant of the Special Mining
Article 81
(1) In case of the activity of exploration and the activity of feasibility study, the holder
of the Exploration Special Mining Business Permit (IUPK Eksplorasi) who obtains
(2) The holder of the Exploration Special Mining Business Permit (IUPK Eksplorasi)
intending to sell the metal mineral or coal as referred to in paragraph (1) shall
42
(3) The temporary permit as referred to in clause (2) shall be granted by the Minister.
Article 82
To the excavated mineral or coal as referred to in Article 81, a production fee may be
imposed.
The requirement for size of are and time limit conforming to mining business category
applicable for a holder of Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) covers:
a. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
hectares.
b. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
hectares.
c. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
d. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
e. The Exploration Special Mining Business Permit (IUPK Eksplorasi) for metal mineral
43
f. The Exploration Special Mining Business Permit (IUPK Eksplorasi) for coal mining
g. The Production Operation Special Mining Business Permit (IUPK Operasi Produksi)
for metal mineral or coal mining may be granted for a maximum period of 20
(twenty) years and may be extended twice, respectively for 10 (ten) years.
Article 84
Further provisions concerning procedure to obtain the Special Mining Business Permit
clause (2) and clause (3), and Article 75 clause (3) shall be regulated under a
government regulation.
CHAPTER XI
Article 85
The government shall announce the plan of the mining business activities in the Special
referred to in Article 30 and grant the Exploration Special Mining Business Permit
(IUPK Eksplorasi) and Production Operation Special Mining Business Permit (IUPK
(1) The business entity as referred to in Article 75 clause (2) which running the activity
in the Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
requirements.
44
(2) Further terms pertaining to the administrative, technical, environment, and
government regulation.
CHAPTER XII
MINING DATA
Article 87
conforming to their authority may assign a state and /or regional research institution
Article 88
(1) The data acquired from the mining business activity shall be the data owned by the
(2) The data of mining business owned by the regional government shall be delivered
(3) The data processing as referred to in clause (1) shall be administered by the
Article 89
a government regulation.
CHAPTER XIII
Article 90
45
The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may conduct some of
or all phases of mining business for both exploration and production operation
activities.
Article 91
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may utilize public
facilities for mining purpose after satisfying the provisios of laws and legislations.
Article 92
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) has the right to own
mineral, including its trace minerals or coal already produced after the exploration or
Article 93
(1) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall not transfer
his /her Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining
(2) Transfer of ownership and /or share at the Indonesian Stock Exchange may only be
(3) The transfer of ownership and /or share as referred to in clause (2) may only be
46
b. provided that it is not contradictive to the provisions of laws and legislations.
Article 94
The right of the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or
guaranteed foro running mining business in accordance with the provisions of laws
and legislations.
Section Two
Obligations
Article 95
The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Article 96
In the implementation of good mining engineering rules, the holder of the Mining
Business Permit (Izin Usaha Pertambangan/IUP) and the Special Mining Business Permit
47
d. the effort of conservation of mineral and coal resources;
form until it meets the environment quality standard before release to the
environment.
Article 97
The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall guarantee the
region.
Article 98
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall maintain the
Article 99
(1) Every holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) and
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall seliver
a reclamation and post mining plan when proposing for a Production Operation
(2) Execution of the reclamation and post mining activity shall be made conforming to
(3) The post mining land purpose as referred to in clause (2) shall be written in a land
use agreement between the holder of Mining Business Permit (Izin Usaha
48
Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan
Article 100
(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
(2) The Minister, governor, or bupati (regent) /mayor, conforming to their authority
may assign a third party to conduct reclamation and post mining activities utilizing
(3) The provisions as referred to in clause (2) shall apply if the holder of the Mining
(Izin Usaha Pertambangan Khusus/IUPK) fail to execute the reclamation and post
Article 101
Further terms concerning reclamation and post mining as referred to in Article 99 and
reclamation guarantee fund and post mining guarantee fund as referred to in Article
Article 102
The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall increase the
added value of the mineral and /or coal in execution of the mining, processing, and
Article 103
49
(1) The holder of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) and Production Operation Special Mining Business Permit (IUPK Operasi
(2) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
clause (1) may process and refine the mining result from another holder of Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit
102 and processing and refining as referred to in clause (2) shall be regulated under
a government regulation.
Article 104
(1) For processing and refining, the holder of the Production Operation Mining
Business Permit (IUP Operasi Produksi /IUPOP) and Production Operation Special
Mining Business Permit (IUPK Operasi Produksi) as referred to in Article 103 may
(2) The Mining Business Permit (Izin Usaha Pertambangan/IUP) obtained by a business
Business Permit (IUP Operasi Produksi /IUPOP) issued by the Minister, the governor,
(3) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
50
clause (1) is prohibited from conducting processing and refining of mining result
from anyone who is not a holder of Mining Business Permit (Izin Usaha
Article 105
(1) A business entity which business activity is not in the mining business intending to
sell excavated mineral and /or coal shall first obtain a Production Operation Mining
(2) The Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in Article
1 paragraph (1) may only be granted once by the by the Minister, the governor, and
(3) On the excavated mineral or coal to sell as referred to in clause (1), a production fee
may be imposed.
(4) The Business Entity as referred to in clause (1) and clause (2) shall submit a report
of sales of excavated mineral and /or coal to the by the Minister, the governor, and
Article 106
The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) must give priority to
employment of local worker, domestik goods and services in accordance with the
Article 107
In running the production operation activity, the business holder holding a Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit
51
(Izin Usaha Pertambangan Khusus/IUPK) shall involve local entrepreneurs in the region
(1) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) an Special
(2) The devise of program and plan as referred to in clause (1) shall be with consult
Article 109
regulation.
Article 110
The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall surrender all data
acquired from exploration and production exploitation result to the Minister, the
governor, and the bupati (regent) /mayor in accordance with their authority.
Article 111
(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
written report regularly concerning the work plan and excution of mineral and coal
mining business activities to the Minister, the governor, and the bupati (regent)
(2) Further provisions concerning format, type, time, and procedure of submission of
52
Article 112
(1) After 5 (five) years of production, a business entity holding a Mining Business
(2) Further terms concerning divestment of shares as referred to in paragraph (1) shall
CHAPTER XIV
Article 113
(1) Temporary suspension of a mining business activity may be granted to the holder
a. force majeure
activities;
c. when all bearing capacities of the environment of the area cannot support the
(2) The temporary suspension of mining business activity as referred to in clause (1)
shall not reduce the validity period of the Mining Business Permit (Izin Usaha
53
Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK).
(3) The request for temporary suspension of mining business activity as referred to in
clause (1) item a and item b shall be delivered to the Minister, the governor, and the
(4) The temporary suspension as referred to in clause (1) item c may be exercised by the
mine inspector or exercised based on the people's request to the Minister, the
governor, and the bupati (regent) /mayor in accordance with their authority.
(5) The Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority shall issue a written decree on grant or rejection along the reason thereof
upon the request as referred to in clause (3) no later than 30 (thirty) days from the
Article 114
(1) The duration of temporary suspension due to force majeure and /or obstructive
condition as referred to in Article 113 clause (1) shall be granted for a maximum of 1
(one) year which may be extended at a maximum once for 1 (one) year.
(2) If within the time before the temporary suspension period expires, the holder of
Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business
operation activities, the activities shall be reported to the Minister, the governor,
(3) The Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority shall revoke the decree of temporary suspension after receiving the report
54
Article 115
(1) If temporary suspension of the mining business activity is granted due to force
majeure as referred to in Article 113 clause (1) item a, the obligations of the Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit
clause (1) item b, the obligations of the Mining Business Permit (Izin Usaha
(3) If temporary suspension of the mining business activity is granted due to condition
of environment bearing capacity of the area as referred to in Article 113 clause (1)
item c, the obligations of the Mining Business Permit (Izin Usaha Pertambangan/IUP)
and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) to the
Article 116
referred to in Article 113, Article 114, and Article 115 shall be regulated under a
government regulation.
CHAPTER XV
PERMIT
Article 117
55
The Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall expire due to:
a. returned;
b. revoked; or
Article 118
(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may return his /her
the governor, and the bupati (regent) /mayor in accordance with their authority
(2) The returning of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or
to in clause (1) shall be stated valid after approval by the Minister, the governor,
and the bupati (regent) /mayor in accordance with their authority and after the
Article 119
The Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) can be revoked by the Minister, the
governor, and the bupati (regent) /mayor in accordance with their authority, in the
event that:
a. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) fails to comply with
56
the obligations stipulated in the Mining Business Permit (Izin Usaha
b. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
c. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
bankrupt.
Article 120
In the event the period defined in the Mining Business Permit (Izin Usaha
for the activity or a request is submitted but fails to meet requirements, thet Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit
Article 121
(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Article 117, Article 118, Article 119, and Article 129 shall fulfill and settle obligations
57
(2) The obligations of the holder of the Mining Business Permit (Izin Usaha
with and approved by the Minister, the governor, and the bupati (regent) /mayor
Article 122
(1) The Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which has been returned,
the Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority.
(2) The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) has expired
Article 123
In the event the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) expires, the holder of
the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) shall surrender all data acquired from
exploration and production operation result to the Minister, the governor, and the
58
CHAPTER XVI
Article 124
(1) The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall use local and
(2) In case the mining service companies as referred to in clause (1) is not available, the
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may use other
1) general survey;
2) exploration;
3) feasibility study;
4) mining construction;
5) transportation;
6) mining environment;
1) mining; or
Article 125
59
(1) In the event the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) uses mining
service, the responsibility of mining business activity shall remain on the holder of
(2) The executive of mining service business can be in form of a business entity,
the Minister.
(3) The actor of mining service company shall give priority to local contractors and
workers.
(4) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
involving affiliates in the mining service business sector in the mining business area
(5) The grant of consent of the Minister as referred to in paragraph (1) shall be made in
the event:
/capable.
Article 127
in Article 124, Article 125, and Article 126 shall be regulated under a regulation of a
minister.
CHAPTER XVII
60
STATE AND REGIONAL INCOME Article 128
(1) The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
(2) The state income as referred to in clause (1) comprises of tax income and non-tax
state income.
a. taxes which fall in the authority of the Government pursuant to the provisions
(4) The non tax state income as referred to in clause (2) comprises of:
a. fixed fee;
b. exploration fee;
a. regional tax;
Article 129
(1) The holder of Production Operation Special Mining Business Permit (IUPK Operasi
Produksi) for metal and coal mineral mining shall pay an amount of 4% (four
percent to the Government and 6% (six percent) to the regional government out of
61
(2) The portion of the regional government as referred to in clause (1) shall be
regulated as follows:
Article 130
(1) To the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or
fee is not imposed as referred to in Article 128 clause (4) item c and regional tax and
fee as referred to in Article 128 clause (5) on soil/rock also excavated during
mining.
(2) To the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or the
Article 131
The amount of tax and non tax state income collected from the holders of Mining
Business Permit (Izin Usaha Pertambangan/IUP) , People's Mining Business Permit (Izin
legislations
Article 132
62
(1) The amount of production fee tariff shall be stipulated based on exploitation level,
(2) The amount of production fee tariff as referred to in clause (1) shall be stipulated in
Article 133
(1) The non tax state income as referred to in Article 128 clause (4) constitutes state and
(2) The non tax state income which constitutes regional portion shall be paid directly to
the regional treasury once in 3 (three) months after payment to the state treasury.
CHAPTER XVIII
Article 134
(1) The rights on Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
/WIUP), People's Mining Area (Wilayah Pertambangan Rakyat /WPR), and Special
(2) A mining business activity may not be conducted on places where it is prohibited to
conduct mining business activity in accordance with the provisions of laws and
legislations.
(3) The mining business activity as referred to in clause (2) may be conducted after
Article 135
63
The holder of Exploration Mining Business Permit (IUP Eksplorasi) and Exploration
Special Mining Business Permit (IUPK Eksplorasi) may only conduct his /her activities
Article 136
(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
production operation, shall settle the right over land with the holder of right in
(2) The settlement of right over land as referred to in clause (1) may be made in phases
conforming to the needs of land by the holder of Mining Business Permit (Izin Usaha
Khusus/IUPK).
Article 137
135 and Article 136 who has conducted settlement on plos of land may be given right
Article 138
The right on Mining Business Permit (Izin Usaha Pertambangan/IUP) , People's Mining
Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin
Usaha Pertambangan Khusus/IUPK) does not constitute the right over land.
CHAPTER XIX
Section One
64
Assistance and Supervision
Article 139
(3) The minister may delegate to the governor to conduct assistance on administering
(4) The Minister, the governor, and the bupati (regent) /mayor in accordance with their
Khusus/IUPK).
Article 140
65
(2) The minister may delegate to the governor to conduct supervision on administering
(3) The Minister, the governor, or the bupati (regent) /mayor in accordance with their
Article 141
(1) The supervision as referred to in Article 140 among else is in form of:
a. mining engineering;
b. marketing;
c. finance;
capabilities;
66
n. management of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and
(2) The supervision as referred to in clause (1) item a, item e, item f, item g, item h, and
item l shall be made by the mine inspector in accordance with the provisions of
has not had a mine inspector, the Minister shall assign an appointed mine inspector
Article 142
(1) The Governor and bupati (regent) /mayor shall report the execution of mining
business in their respective are at least once in 6 (six) months to the Minister.
(2) The Government may issue a warning to the regional government if in exercise of
its authority; it fails to comply with the provisions of this Law or the provisions of
other laws.
Article 143
(1) The bupati (regent)/mayor shall conduct assistance and supervision on thhe
(2) Further provisions concerning assistance and supervision of people's mining shall
Article 144
67
Further provisions the standard and procedure of assistance and supervision as
referred to in Article 139, Article 140, Article 141, Article 142, and Article 143 shall be
Section Two
Article 145
(1) The people who are hit by direct negative impact of the mining business activity
b. propose a claim to the court on loss incurred due to mining activity which
violates a provision.
(2) The provisions concerning protection for the people as referred to in clause (1)
CHAPTER XX
Section One
Article 146
The Government and the regional government shall encourage, execute, and /or
Section Two
Article 147
68
The Government and the regional government shall encourage, execute, and /or
facilitate the execution of education and training in mineral and coal exploitation.
Article 148
The administering of education and training may be made by the Government, the
CHAPTER XXI
INVESTIGATION
Article 149
(1) As addition to the police officers of the Republic of Indonesia, a civil servant officer
which work and responsibility coverage in mining shall be given a special authority
(2) The civil servant investigator as referred to in clause (1) shall have an authority to:
c. summon and /or make a person appear in force to be heard and investigated as
d. to search a place and /or facility suspected to be used for conducting a criminal
f. seal and /or confiscate the mining business activity equipment used to conduct
69
g. to make appear of and /or request help from experts required in relation to the
examination of criminal act case in the mining business activity; and /or
Article 150
(1) The civil servant investigator as referred to in Article 149 may apprehend the actor
(2) The civil servant investigator as referred to in clause (1) makes a report starting
from investigation and delivers the result of investigation to the police officers of
legislations.
(3) The civil servant investigator as referred to in clause (1) shall terminate his
investigation in the event there is no sufficient evidence and /or the event does not
(4) Exercise of the authority as referred to in clause (2) and clause (3) shall be made in
CHAPTER XXII
ADMINISTRATIVE SANCTION
Article 151
(1) The Minister, the governor, and the bupati (regent) /mayor in accordance with
Article 30 clause (3), Article 40 clause (5), Article 41, Article 43, Article 70, Article 71
70
clause (1), Article 74 clause (4), Article 74 clause (6), Article 81 clause (1), Article 93
clause (3), Article 95, Article 96, Article 97, Article 98, Article 99, Article 100, Article
102, Article 103, Article 105 clause (3), Article 105 clause (4), Article 107, Article 108
clause (1), Article 110, Article 111 clause (1), Article 112 clause (1), Article 114 clause
(2), Article 115 clause (2), Article 125 clause (3), Article 126 clause (1), Article 128
clause (1), Article 129 clause (1), or Article 130 clause (2).
(2) The administrative sanction as referred to in clause (1) shall be in form of:
a. a written warning;
Article 152
In the event the local government fails to execute the provisions as referred to in Article
151 and the result of evaluation made by the Minister as referred to in Article 6 clause
(1) item j, the Minister may temporarily suspend and /or revoke the Mining Business
Article 153
In the event the regional government objects to the temporary suspension and /or
revocation of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and People's
71
Article 152, the regional government may propose an objection in accordance with the
Article 154
Any dispute incurring in the exercise of the Mining Business Permit (Izin Usaha
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be settled
through the court and domestic arbitration in accordance with the provisions of laws
and legislations.
All legal consequences incurring due to temporary suspension and /or revocation of
Permit (Izin Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin Usaha
Pertambangan Khusus/IUPK) as referred to in Article 151 clause (2) item b and item c
Article 156
referred to in Article 151 and Article 152 shall be regulated under a government
regulation.
Article 157
On the regional government which fails to meet the provisions as referred to in Article
CHAPTER XXIII
CRIMINAL PROVISIONS
Article 158
72
Every person who conducts a mining business without a Mining Business Permit (Izin
as referred to in Article 37, Article 40 clause (3), Article 48, Article 67 clause (1), Article
74 clause (1) or clause (5) shall be punished with a jail term for a maximum time of 10
(ten) years and fine for a maximum amount of Rp 10.000.000.000,00 (ten billion
rupiahs).
Article 159
referred to in Article 43 clause (1), Article 70 item e, Article 81 clause (1), Article 105
clause (4), Article 110, or Article 111 clause (1) incorrectly or gives false information
shall be punished with a jail term for a maximum time of 10 (ten) years and fine for a
Article 160
(1) Every person who conducts exploration without obtaining a Mining Business
Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha
be punished with a jail term for a maximum time of 1 (one) year or fine for a
(2) Every person who possesses a Exploration Mining Business Permit (IUP Eksplorasi)
but runs production operation activity shall be punished with a jail term for a
73
maximum of 5 (five) year and fine for a maximum of Rp. 10.000.000.000,00 (ten
billion rupiahs).
Article 161
Every person who holds a Production Operation Mining Business Permit (IUP Operasi
Operasi Produksi) who collects, utilizes, and conducts processing and refining,
transportation, sales of mineral and coal sourced not from a holder of a Mining
Business Permit (Izin Usaha Pertambangan/IUP) , Special Mining Business Permit (Izin
clause (3), Article 43 clause (2), Article 48, Article 67 clause (1), Article 74 clause (1),
Article 81 clause (2), Article 103 clause (2), Article 104 clause (3), atau Article 105 clause
(1) shall be punished by a jail term for a maximum time of 10 (ten) years and fine for a
Article 162
Every person who obstructs or interrupts the mining business activity of a holder of a
Permit (Izin Usaha Pertambangan Khusus/IUPK) who has met the requirements as
referred to in Article 136 clause (2) shall be punished by a jail term for a maximum of 1
(one) year and fine for a maximum of Rp. 100.000.000,00 (one hundred million
rupiahs).
Article 163
(1) In the event the criminal act as referred to in this chapter is conducted by a legal
entity, as addition to the jail term and fine on its management, a punishment can
74
also be imposed on the legal entity in form of fine punishment with aggravation
Article 164
Other than the provisions as referred to in Article 158, Article 159, Article 160, Article
161, and Article 162, on the actor of the criminal act, additional punishment may be
Article 165
Every person who issues the Mining Business Permit (Izin Usaha Pertambangan/IUP) ,
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which contradicts this Law
and misuses his /her authority shall be punished with a jail term for a maximum of 2
(two) years and fine for a maximum of Rp 200.000.000,00 (two hundred million
rupiahs).
CHAPTER XXIV
OTHER PROVISIONS
Article 166
75
Every problem incurring on the exercise of Mining Business Permit (Izin Usaha
environment impact shall be settled in accordance with the provisions of laws and
legislations.
Article 167
The Mining Area (Wilayah Pertambangan /WP) shall be managed by the Minister in a
Business Area (Wilayah Usaha Pertambangan /WUP), Mining Business Permit Area
(Wilayah Izin Usaha Pertambangan /WIUP), People's Mining Area (Wilayah Pertambangan
Rakyat /WPR), State Reserve Area (Wilayah Pencadangan Negara /WPN), Special Mining
Business Area (Wilayah Usaha Pertambangan Khusus /WUPK), and Special Mining
Article 168
To increase investment in mining, the Government may provide facilities and taxation
facilities in accordance with the provisions of laws and legislations except stated
CHAPTER XXV
TRANSITIONAL PROVISIONS
Article 169
76
a. Contract of work and concession work agreement for coal mining which have
existed before this Law comes into effect shall remain effective until expiry of the
contract /agreement.
b. The provisions in the articles in the contract of work and concession agreement for
coal mining as referred to in clause a shall be adjusted no later than 1 (one) year
since this Law is promulgated except for matters pertaining to state income.
c. Exception to the state income as referred to in item b shall be the effort to increase
state income.
Article 170
The holder of a contract of work as referred to in Article 169 who has started
production shall conduct refining as referred to in Article 103 clause (1) no later than 5
Article 171
(1) The holder of contract of work and concession work contract for coal mining as
referred to in Article 169 who has conducted the activity phase of exploration,
since this Law comes into effect must submit an activity plan on all contract
government approval.
(2) In the event the provision as referred to in clause (1) cannot be satisfied, the size of
mining area already granted to the holder of the contract of work and work
Article 172
77
The request for contract of work and work agreement on coal mining business already
proposed to the Minister at least 1 (one) year before this Law comes into effect and has
keep being respected and its permit can be processed without going through a bid in
CHAPTER XXVI
CLOSING PROVISIONS
Article 173
(1) By the time this Law comes into effect, the Law Number 11 of Year 1967 concerning
Main Terms of Mining (State Gazette of the Republic of Indonesia of Year 1967
Number 22, Supplement to State Gazette Number 2831) shall be revoked and stated
to be void.
(2) At the time this Law comes into effect, all legislations which constitute
Number 22, Supplement to State Gazette Number 2831) shall be stated to remain in
effect provided that they are not contradictory to the provisions of this Law.
Article 174
The implementation regulation of this Law must have been stipulated within 1 (one)
Article 175
For public cognizance, orders promulgation of this Law by its placement in the State
78
Ratified in Jakarta on the date 12 January 2009
of
of
REPUBLIC OF INDONESIA,
ANDI MATTALATTA
79