Procedures for Reviewing Mining Business Licenses and Clean-and-Clear Statuses/Certificates Redefined

The Minister of Energy and Mineral Resources (“Minister”) has issued Regulation No. 43 of 2015 on Procedures for the Evaluation of Mining and Coal Business Licenses (“2015 Regulation”).The 2015 Regulation was issued in order to stipulate further provisions on the transfer of authority from regents/mayors to the Minister or governor, as regards the issuance and review of Mining Business Licenses (Izin Usaha Pertambangan-“IUP”) or mining concessions (Kuasa Pertambangan– “KP”). Additionally, the 2015 Regulation also sets out the provisions through which the Minister and governors can issue Clean-and-Clear (“CnC”) status and certificates to IUP holders, which are mandatory requirements for anyone looking to engage in mining activity.The 2015 Regulation is of relevance to the Minister, local-government heads (governors, regents, and mayors), and mining and coal business-license holders in general.IUP ReviewPursuant to Law No. 23 of 2014 on Regional Level Government, the authority to issue and review IUPs and KPs now resides with the Minister via the Directorate General of Minerals and Coal (“Directorate General”), as well as with governors. Thus, the 2015 Regulation mandates that every regent/mayor hands over all of the licensing documents currently in their possession (IUPs and KPs) to the Directorate General or relevant governor. [1] The Directorate General is responsible for reviewing inter-provincial licensing documents that have been secured by domestic investors and licensing documents that have been secured by foreign investors under the foreign direct-investment (FDI) scheme. Meanwhile, governors are only to be responsible for reviewing licensing documents lying within their jurisdictions and which have been funded by domestic investors. [2] In detail, the licensing documents that will now be reviewed by the Directorate General and governors under the 2015 Regulation cover: [3]