2 February, 2016
Minister of Energy and Mineral Resources Regulation No. 25 of 2015, dated August 12, 2015, regarding the Delegation of Licensing Authority in the Field of Mineral and Coal Mining in the Implementation of the One-Door Integrated Service to the Head of the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”). This Regulation implements Presidential Instruction No. 4 of 2015 regarding the One-Door Integrated Service at the BKPM. It delegates to the BKPM the authority to issue the following mineral and coal mining business licenses: (i) Mining Exploration Business License; (ii) Mining Operation Production Business License and its extension; (iii) termination of Mining Business License due to return of mining area; (iv) Mining Production Operation Business License specifically for transportation and trade and its extension; (v) Mining Production Operation Business License specifically for processing and/or refining and its extension; (vi) temporary license for transportation and trade; (vii) Mining Production Operation Business License for trade; (viii) Principle License for processing and/or refining; and (ix) Mining Service Business License and its extension. This Regulation came into effect on the date of its enactment.
Minister of Energy and Mineral Resources Regulation No. 32 of 2015, dated October 23, 2015, regarding the Amendment of Minister of Energy and Mineral Resources Regulation No. 32 of 2013 regarding the Procedures for the Granting of Special Licenses in the Field of Mineral and Coal Mining. This Regulation provides that business entities that do not engage in the mining business, are located in a designated industrial area, or which conduct non-metal mineral and rock mining for non-commercial purposes are exempt from the obligation to obtain an Operation Production Mining Business License for certain sales. This Regulation came into effect on the date of its enactment.
Minister of Energy and Mineral Resources Regulation No. 38 of 2015, dated November 2, 2015, regarding the Acceleration of Non-Conventional Oil and Natural Gas Business. Non-conventional oil and natural gas business includes exploration and exploitation activities carried out through a cooperation contract, which can be in the form of a production sharing contract, sliding scale production sharing contract, or gross split sliding scale production sharing contract. The Directorate General of Oil and Gas, on behalf of the Minister of Energy and Natural Resources, will stipulate the working area of non-conventional oil and gas businesses The maximum term of the cooperation contract is 30 years, and it may be extended for a maximum of 20 years. This Regulation came into effect on the date of its enactment.
For further information, please contact:
Dyah Soewito, Partner, Soewito Suhardiman Eddymurthy Kardono
dyahsoewito@ssek.com
