Mining 2026

INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Mahatma Hadhi, Kenny Poltak and Atika Rizka, ABNR Counsellors at Law

• cfeasibility study. Production operation comprises: • construction; • mining activity; • processing, refinery, development and/or exploita - tion; and • transportation and sales. Article 46 of the Mining Law guarantees that a holder of an IUP or IUPK that has completed the exploration stage is assured the right to proceed to the production operation stage, ensuring continuity of mining opera - tions. Validity of IUPs Exploration IUPs are valid for: • up to 8 years (metallic minerals mining); • up to 3 years (non-metallic minerals mining); • up to 7 years (certain types of non-metallic miner - als mining); • up to 3 years (rock/stone mining); and • up to 7 years (coal mining). An exploration IUP may be extended indefinitely, each time for one year, provided that the requirements under GR 96/2021 are fulfilled and based on approval from the MEMR. Production operation IUPs may be granted for the fol - lowing periods: • up to 20 years for metallic minerals mining, extend - able twice, for 10 years each time; • up to 10 years for non-metallic minerals mining, extendable twice, for 5 years each time; • up to 20 years for certain types of non-metallic minerals mining, extendable twice, for 10 years each time; • up to 5 years for rock/stone mining, extendable twice, for 5 years each time; • up to 20 years for coal mining, extendable twice, for 10 years each time; • up to 30 years for metal minerals mining integrated with processing or refining, extendable twice, for 10 years each time;

• up to 30 years for coal mining integrated with pro - cessing or refining, extendable twice, for 10 years each time; and • up to 20 years for non-metallic minerals mining integrated with processing or refining, extendable twice, for 10 years each time. Transfer Restrictions Under the Mining Law, the transfer of an IUP or IUPK is permissible upon receipt of approval from the MEMR. Pursuant to GR 96/2021, MEMR approval for either the transfer of an IUP or IUPK licence or the transfer of equity of the licence holder to another party may be granted if the IUP or IUPK holder: • has completed the exploration stage, as evidenced by mining resources and reserves data; • has fulfilled the administrative, technical, environ - mental and financial requirements; and • has submitted documents related to the proposed transferee. The administrative requirements to transfer an IUP or IUPK are the following: • Business Identification Numbers of both the exist - ing mining company holding the IUP or IUPK and the proposed transferee; • current management structure, shareholding struc - ture, and list of beneficial owners of the existing IUP or IUPK holder; and • profile of the proposed transferee that will receive the transfer of the IUP or IUPK. The technical requirements to transfer an IUP or IUPK are the following: • the latest exploration report and mineral resource and reserve data of the existing IUP or IUPK holder; • documents showing the experience of the pro - posed transferee in carrying out construction, mining, processing and/or refining, and/or develop - ment and/or utilisation activities; and • for a new mining company, document showing the experience of the parent company operating in the mining sector.

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