INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Mahatma Hadhi, Kenny Poltak and Atika Rizka, ABNR Counsellors at Law
ance of a production operation IUP. The validity of an Environmental Approval shall be aligned with the valid - ity of the business licensing or government approval. The Environmental Approval may either be issued by: • the Minister of Environment, in cases where the project spans multiple provinces, is located more than 12 nautical miles offshore, is situated in a cross-border area, is classified as high-risk or high- pollution, is designated as a National Strategic Project, or otherwise involves overlapping authori - ties that include the central government; • the Governor, where the project extends across multiple districts or cities within a single province, is located less than 12 nautical miles offshore, is deemed to have provincial-level strategic signifi - cance, or involves overlapping authorities between the provincial and district/city government; or • the Regent, for projects located entirely within a single district or city, to the extent that the project does not fall within the jurisdiction of the Minister or the Governor. Environmental authorities are empowered to oversee the implementation of environmental compliance as stipulated in the approved environmental documents. They are also responsible for reviewing the periodic reports submitted by mining companies to ensure adherence to these requirements. Any breach of environmental compliance may result in administrative sanctions. Depending on the severity and nature of the violation, such non-compliance can serve as grounds for the MEMR to revoke the mining company’s IUP. 2.2 Impact of Environmentally Protected Areas on Mining There are certain environmentally protected areas where mining activities are prohibited or restricted, namely the following. a. Conservation Zones Mining activities are strictly prohibited from being conducted in conservation zones consisting of nature reserve areas ( kawasan suaka alam ) and nature con - servation areas ( kawasan pelestarian alam ), as regu -
lated under Law No. 5 of 1990 on Conservation of Biological Natural Resources and Their Ecosystems, as amended by Law No. 32 of 2024. b. Micro Islands Mining activities are also prohibited from being con - ducted on micro islands with an area of less than 100 sq km pursuant to the provision of Minister of Sea and Fisheries Regulation No. 10 of 2025 on Utilisation of Micro Islands and Surrounding Water. c. Forest Areas Mining activities are generally permitted to be con - ducted in forest areas, subject to obtainment of a For - est Area Utilisation Approval ( Persetujuan Penggunaan Kawasan Hutan ). However, open-pit mining is specifi - cally prohibited from being conducted in a protected forest area ( kawasan hutan lindung ), except in very limited cases where, in the past, specific exemptions were granted, and even then only until the relevant permits expire. 2.3 Impact of Community Relations on Mining Projects Mining companies are obligated to implement com - munity development and empowerment programmes that consist of: (a) social and environmental responsi - bility programmes; (b) involvement of local communi - ties and indigenous peoples located within the mining area in mining activities; and (c) business partner - ship programmes and community-based economic empowerment initiatives. Pursuant to MEMR Regulation No. 25 of 2018 on Min - eral and Coal Mining Businesses, as last amended by MEMR Regulation No. 17 of 2020 (“MEMR Reg 25/2018”), the community development and empow - erment programme must be contained in a master plan that refers to a blueprint stipulated by prevailing laws and regulation. MEMR Reg 25/2018 further stipulates that this plan must be prepared at the same time the mining com - pany prepares the feasibility study and environmental documents, and cover the community development and empowerment programme from operation pro - duction until post-mining activities.
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