Foreign Investment in Mining in Indonesia

By Makarim & Taira S.

1 Overview of foreign investment in the Indonesian mining sector

After almost four years of discussions, the Bill on Minerals and Coal Mining was finally passed by the House of Representatives on 16 December 2008 and signed by the President on 12 January 2009 as Law No. 4 of 2009 (the "New Mining Law"). The enactment of the New Mining Law in Indonesia brings mining under a new licensing regime, replacing the one that has prevailed for the last 40 years under which foreign investors have had to sign a Contract of Work with the Indonesian government to conduct mining activities. The New Mining Law also introduces many other important changes and some new provisions.