INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Mahatma Hadhi, Kenny Poltak and Atika Rizka, ABNR Counsellors at Law
The environmental requirements to transfer the IUP or IUPK are: • a report outlining the implementation of reclama - tion programme by the existing IUP or IUPK holder; • evidence of a deposit reclamation guarantee by the existing IUP or IUPK holder; and • a statement of ability issued by the transferee to comply with the provisions of laws and regulations in the field of environmental protection and man - agement. The financial requirements to transfer an IUP or IUPK are: • financial statements for the last three years that have been audited by a public accountant; or • for a new mining company, financial statements for the last three years from the parent company that have been audited by a public accountant. Cancellation/Revocation of Permits The IUP or IUPK can be revoked by the MEMR if one of the following conditions occurs: • the holder of the IUP or IUPK fails to fulfil the obligations stipulated in the IUP or IUPK and the provisions of applicable laws and regulations; • the holder of the IUP or IUPK commits a criminal offence as referred to in the Mining Law; or • the holder of the IUP or IUPK is declared bankrupt. Supervision and Control The Mining Law mandates that the MEMR is responsi - ble for conducting regular supervision of mining busi - ness activities carried out by permit holders, and the results must be reported to the public. The supervision covers the following aspects: • mining technical operations; • production and marketing; • financial matters; • mineral and coal data processing; • conservation of mineral and coal resources; • mining safety; • environmental management, reclamation and post- mining activities;
• utilisation of domestic goods, services, technology, and engineering and design capabilities; • development of technical mining workforce; • development and empowerment of local communi - ties; and • mastery, development and application of mining technology. 2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects Indonesian law sets out provisions on environmen - tal protection mainly under Law No. 32 of 2009 on the Protection and Management of the Environment, as last amended by the Job Creation Law (“Law No. 32/2009”), and Government Regulation No. 22 of 2021 on Implementation of Environmental Protection and Management (“GR 22/2021”). These regulations require a business undertaking in Indonesia to prepare studies and analysis on the potential environmental impact that may result from its business activities and submit the analysis to the relevant government institution for assessment. For mining activities, depending on the scale of the business activities and their potential environmental impact, generally the government requires businesses to prepare the following environmental documents: • Environmental Impact Analysis ( Analisis Dampak Lingkungan , or “AMDAL”) for activities deemed to have a significant impact on the environment; or • Environmental Management and Monitoring Efforts ( Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup , or “UKL-UPL”) in a specific standard form provided by the govern - ment for activities considered to have no significant environmental impact. Both the AMDAL and UKL-UPL must be further sub - mitted to the authority for approval in the form of an Environmental Approval ( Persetujuan Lingkungan ). Environmental Approval is a prerequisite for the issu -
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