Development in Mining Regulatory Issues

Third Amendment to Government Regulation No. 23 of 2010 on Undertaking of Mineral and Coal Mining Activities

Government Regulation No. 77 of 2014 (GR 77/2014) is the third amendment to Government Regulation No. 23 of 2010 (GR 23/2010), came into force since 14 October 2014. The main provisions in GR 77/2014 are as follows:

• Composition of the foreign shareholding in a mining company that was converted from a local company to a foreign investment company;
• Mandatory divestment scheme for the holders of Production Mining Licenses (IUP Produksi – Izin Usaha Pertambangan Operasi Produksi) and Special Production Mining Licenses (IUPK Produksi – Izin Usaha Pertambangan Khusus Operasi Produksi), which depend on the fulfillment of processing/purification activities and mining method (open-pit mining, underground mining);