Mining Law and Regulatory Practice in Indonesia

The first and only English-language reference to the laws and regulations of the booming Indonesian mining sector

As the growing Indonesian mining industry attracts new investment from foreign mining companies, those companies are faced with the daunting challenge of unraveling the hugely confusing and complex plethora of local laws and regulations that govern the industry. Until now, there has been no comprehensive English-language guide to Indonesia's mining laws that western companies could turn to for reliable guidance and advice. This detailed reference fills that gap for the mining companies, advisors, and consultants who must navigate this confusing and growing web of regulation on a daily basis.

• The only English-language reference on the subject of Indonesian mining law

• A valuable guide for anyone in the mining industry currently doing business or intending to do business in Indonesia

• Written by a highly regarded legal expert with deep experience in the Indonesian mining industry

• Combines all the relevant regulations in one comprehensive guide

Ideal for professionals in the mining industry, as well as academics, government institutions, policy makers, and industry associations, Mining Law & Regulatory Practice in Indonesia is the perfect guide for an underserved market.

Autorentext

William A. Sullivan is a Licensed Foreign Advocate in
Indonesia as well as a Solicitor of the Supreme Court of New South
Wales; a Solicitor of the High Court of Australia; an attorney and
counselor-at-law in all courts of the State of New York; an
attorney and counselor-at-law in the United States District Court
for the Southern and Eastern Districts; a Solicitor of the Supreme
Court of England and Wales; and a Solicitor of the Supreme Court of
Hong Kong, admitted to practice in each of these jurisdictions.
Bill's first involvement with Indonesia came in the early 1990s
when he was seconded by an Australian law firm to a leading
Indonesian law firm to provide international legal expertise in
corporate and securities with a particular emphasis on corporate
restructuring, the development of new financial products, debt and
equity raisings, and other capital markets projects. He also acted
for multinational corporations with substantial investments in
Indonesia and for Indonesian companies pursuing major domestic and
foreign investments, particularly in the oil and gas and hotel
industries. From 1999 to 2000, Bill acted as the Australian
government-funded technical adviser on debt restructuring matters
to Bank Indonesia (the Indonesian central bank). Since 2006, Bill
has concentrated increasingly on the Indonesian mining, energy, and
resources sector. He has been involved in the negotiation,
structuring, and documentation of numerous coal, gold, iron ore,
and mineral sands project acquisitions, financings, and
investments. This work has also included both advising upstream oil
and gas companies in connection with their existing operations as
well as advising foreign independent oil and gas companies on
potential new investments in Indonesia, particularly in the coal
bed methane gas sector.

Inhalt
Foreword xi Preface xiii

Acknowledgments xvii

CHAPTER 1 Overview of Mining Regime 1

I Prevailing Laws and Regulations 1

II Former Mining Regime 3

III CoWs/CCoWs 3

IV Regional Autonomy 5

V Mining Activities 6

VI Mining Areas 6

VII Mining Licenses 7

VIII Procedures for Obtaining WIUPs and IUPs 11

IX Rights and Obligations of IUP Holders 12

X Domestic Market Obligation 15

XI Divestiture of Shares Requirement 16

XII Procedures for Minerals and Coal Benchmark Price Determination 17

XIII Domestic Processing and Refining 19

XIV Direction and Supervision of the Management and Implementation of Mining Business 22

XV Transitional Provisions for Existing KPs, CoWs, and CCoWs 23

XVI Mining Services 24

CHAPTER 2 2009 Mining Law 25

I Executive Summary 25

II Details of Main Provisions 26

CHAPTER 3 Mining Area Determination 43

I Executive Summary 43

II Details of Main Provisions 44

CHAPTER 4 Mining Services Regulation 53

I Executive Summary 53

II Details of Main Provisions 55

CHAPTER 5 Affiliated Mining Services Provider Regulation 65

I Executive Summary 65

II Details of Main Provisions 67

CHAPTER 6 Prioritization of Domestic Interest Regulation 71

I Executive Summary 71

II Details of Main Provisions 72

CHAPTER 7 Domestic Coal Supply Decree 2013 79

I Executive Summary 79

II Details of Main Provisions 79

CHAPTER 8 Coal and Mineral Mining Enterprise Activities Regulation 83

I Executive Summary 83

II Details of Main Provisions 85

CHAPTER 9 Mining Direction and Supervision Regulation 107

I Executive Summary 107

II Details of Main Provisions 108

CHAPTER 10 Benchmark Price Determination Regulation 117

I Executive Summary 117

II Details of Main Provisions 119

Appendix 1: Coal Adjustment Cost for HPB RE Sales of Coal by Way of FOB Barge 131

Appendix 2: Cost Adjustment for HPB RE Sales of Coal in One Island to the End User 132

CHAPTER 11 Benchmark Price Formulae Regulation 135

I Executive Summary 135

II Details of Main Provisions 136

Appendix 1: Formula for Steaming Coal Benchmark Price 139

Appendix 2: Coal Benchmark Price Reference Formula for Steaming Coal Based on Brand Name 142

Appendix 3: Formula for Coking Coal Benchmark Price 145

CHAPTER 12 Reclamation and Post-Mining Activities Regulation 147

I Executive Summary 147

II Details of Main Provisions 149

CHAPTER 13 CoW and CCoW Change of Investment Regulation 159

I Executive Summary 159

II Details of Main Provisions 160

CHAPTER 14 Extractive Industry Income Transparency Regulation 167

I Executive Summary 167

II Details of Main Provisions 168

CHAPTER 15 Increase of Added Value of Minerals through Processing and Refining of Minerals Regulation 173

I Executive Summary 173

II Details of Main Provisions 177

Appendix 1: Minimum Processing and Refining Specifications for Metal Mineral Products 188

Appendix 2: Minimum Processing and Refining Specifications for Nonmetal Mineral Products 191

Appendix 3: Minimum Processing and Refining Specifications for Rock Mineral Products 192

CHAPTER 16 Regulation Amending Mineral and Coal Mining Enterprise Activities Regulation 193

I Executive Summary 193

II Details of Main Provisions 195

CHAPTER 17 Mineral Products Export Requirements Regulation 201

I Executive Summary 201

II Details of Main Provisions 202 Appendix 1: Certai...