Energy Ministry Decree No.258.K/MB.01/MEM.B/2023

Country / jurisdiction: Indonesia · Year: 2023 · Status: In force · Level: National · Type: Voluntary

This Decree regarding guidelines for granting territory permit for mining business activity and territory permit for special metal and coal mining business activities was issued to increase the investment in mining and coal sector by regulating the granting of mining territory through auction. The Ministry of Energy and Mineral Resources auctions the permit to state- or regionally-owned enterprises based on priority in line with the guideline laid out within this decree.

The guidelines are as follows:

The minister will offer the mining business areas licence (WIUPK) to state-owned companies (BUMN) and to governor or regent (depend on which authority regulates the area);

The governor or regent will offer the WIUPK to the regional-owned companies (BUMD);

The companies (both BUMN and BUMD) will submit their letter of interest based on the form that has been set by the ministry;

If there is only one company who is interested, the payment for compensation of information and data (KPI) should be finalised within 10 days;

If there are more offerings, to coordinate the WIUPK to BUMN and BUMN who are interested, the general director under the minister authority should facilitate the coordination.

Based on this result, the BUMN or BUMD must establish a joint venture or, use a company that has affiliation with BUMN or BUMD (has their stock) within 60 days since the offering of WIUPK being signed;

The handout/issuance of WIUPK will be given  by the minister and the appointed company should pay the KPI within 10 days.

Official source: https://jdih.esdm.go.id/index.php/web/result/2396/detail