Environmental and occupational safety guidelines for geothermal industry
Minister of Energy and Mineral Resources Regulation No. 33 of 2021 regarding Occupational
Safety and Health, Environmental Protection and Management, and Technical Guidelines for
the Indirect Use of Geothermal Energy
Enacted and came into force on December 2, 2021
This Regulation stipulates provisions on the implementation of occupational health and
safety (Keselamatan dan Kesehatan Kerja or “K3”) in the geothermal sector and
geothermal engineering, which includes provisions on pollution control and
environmental damage, and the implementation and operation of geothermal
supporting business activities. It outlines the application of K3 and geothermal
engineering activities, which include activities related to construction, operation,
maintenance, demolition, and rebuilding.
Preliminary and Exploration Survey Assignment (Penugasan Survei Pendahuluan dan
Eksplorasi or “PSPE”) and Geothermal License (Izin Panas Bumi or “IPB”) holders are
permitted to carry out geothermal well drilling activities after inspection and approval
by the appointed authorities. PSPE and IPB holders must put in place pollution and/or
environmental damage control measures. The appointed Head of Geothermal
Inspectors will supervise the application of K3, geothermal engineering, and pollution
and/or environmental damage control, providing technical guidance, carrying out work
safety inspections, and issuing administrative sanctions. This Regulation also requires
geothermal supporting business activities to be carried out by a geothermal supporting
business in the form of a state-owned or regional-owned enterprise, cooperative,
private business entity or public service agency.
With the issuance of this Regulation, Minister of Mining and Energy Regulation No.
02.P/20/M.PE/1990 regarding Work Safety in Geothermal Resources Exploration and
Exploitation and Minister of Mining and Energy Regulation No. 06P/0746/M.PE/1991
regarding Work Safety Examination of Installation, Equipment, and Techniques Used
in Oil and Natural Gas Mining and the Utilization of Geothermal Resources are
revoked and declared invalid.
Mineral and coal mining business licenses revoked
Ministry of Energy and Mineral Resources Press Release No. 10.Pers/04/SJI/2022 regarding
Government Revocation of 2,078 Mineral and Coal Mining Business Licenses
Issued on January 6, 2022
This Press Release reported that the Government had revoked 2,078 mineral and coal
mining business licenses, as part of a drive to improve the administration of natural
resources by evaluating Mining Business Licenses (Izin Usaha Pertambangan). Any
license found to be unimplemented, unproductive, transferred to another entity or
incompliant with applicable regulations is to be revoked. The Press Release also said
the Government was considering policies to ensure the maximum benefit from the
country’s mineral and coal resources.
New provisions on coal domestic market obligation
Minister of Energy and Mineral Resources Decree No. 13.K/HK.021/MEM.B/2022 regarding
the Prohibition of Coal Exports and Guidelines for the Imposition of Fines and Compensation
Funds for Fulfilling Domestic Market Obligation
Enacted and came into force on January 19, 2022
This Decree stipulates that Mining Business License, Special Mining Business
License, Special Mining Business License as a Continuation of the Operation of
Contracts/Agreements, and Coal Mining Concession Work Agreement (Perjanjian
Karya Pengusahaan Pertambangan Batubara or “PKP2B”) holders that fail to meet
their domestic coal sale obligations in accordance with Minister of Energy and Mineral
Resources Decree No. 139.K/HK.02/MEM.B/2021 shall be subject to administrative
sanctions in the form of the temporary suspension or revocation of their licenses.
Mining business entities that do not meet the required domestic coal sale percentage
also are subject to a prohibition on coal exports and mandatory payment of fines and/or
compensation funds.
New procedures for Mining Business Licenses
Minister of Energy and Mineral Resources Decree No. 15.K/HK.02/MEM.B/2022 regarding
Procedures for the Issuance and Registration of Mining Business Licenses
Enacted and came into force on January 21, 2022
This Decree regulates the processes and procedures for applying for and registering
a Mining Business License. The Director General of Coal and Minerals, on behalf of
the Minister of Energy and Mineral Resources, may also apply specific terms and
conditions that must be met by the holders of a Mining Business License for metal
minerals or coal before they can carry out business activities. The application process
for a Mining Business License will be carried out through the Director General of Coal
and Minerals, subject to the fulfilment of administrative, regional, technical,
environmental and financial requirements.
This Decree stipulates that the Director General of Coal and Minerals has the authority
to suspend Mining Business Licenses at the request of law enforcement authorities or
because of share ownership disputes. It also regulates the process for the revocation
of a Mining Business License in the event of the bankruptcy of the license holder.
For more information, please contact:
Stephen Igor Warokka, Partner, SSEK
