3/25/2023 0 Comments Reggy firmansyahThe Draft Mining Law, if enacted, would replace Indonesias existing mining law (Law No 4 of 2009 on Minerals and Coal Mining – “Current Mining Law”). We have recently reviewed a discussion draft of a proposed new mining law circulated by the MEMR (“Draft Mining Law”). Stipulates that PMA mining companies with foreign shareholdings below 34% are regulated by the Provincial Government.įollowing the appointment of a new Minister and deputy Minister to the Ministry of Energy and Mineral Resources (“MEMR”), revising the current legal and regulatory regime for miners will be a key priority.Permits mining services companies to extract mineral ores (not just removal of overburden).Permits holders of IUPKs to apply for an extension IUPK five years (but no later than one year) prior to expiry.Prohibits Central, Provincial, and Regional Governments from imposing non-tax levies, without the Ministers approval.Increases the initial production period by 10 years for companies doing integrated mining and processing.Sets out that divestment to non-state/state-owned owned entities will need to be carried out by IPO.Relaxes foreign ownership restrictions, so that foreign owners can retain control of mining companies.Seeks to introduce tax incentives for mining companies carrying out processing/refining activities.Seems to introduce a greater degree of flexibility with regard to the obligation to refine ore/coal.Stipulates that COWs/CCOWs will be replaced with IUPKs, within one year of the law being passed.
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