Foreign Mining Divestment Requirements

Within a certain number of years after PT PMAs reach the stage of Operation Production, foreign shareholders must divest to reach a minimum of 51% domestic share ownership.

Governing Law

As of the time of publication of this article, foreign divestment in PT PMAs engaged in Mining Business is predominantly governed by the following regulations:

1. Indonesian Civil Code (Kitab Undang-undang Hukum Perdata – Burgerlijk Wetboek voor Indonesië – Staatsblad 1847:23) ("ICC");
2. Law No. 25 of 2007 concerning Capital Investment (Undang-undang No. 25 Tahun 2007 tentang Penanaman Modal) ("UU 25/2007");
3. Law No. 40 of 2007 concerning Limited Liability Companies (Undang-undang No. 40 Tahun 2007 tentang Perseroan Terbatas ("UU 40/2007");