Eva Armila, our Partner, recently addressed the Djakarta Mining Club on the pressing topic of "Indonesian Regulations Impacting Miners." Here's a concise breakdown of the key insights she shared:
- WIUP Expansion: The recent MEMR Decree No. 375/2023 lifts the moratorium on WIUP expansion, allowing for growth up to 15,000 ha. Criteria include registration, active production history, conservation efforts, exploration activities, and data submission.
- New Tender Process: The ongoing MEMR tender process involves coal blocks, encouraging participation in natural resource development. Look out for future tenders, fostering business involvement.
- New RKAB Regulations: MEMR Decree 373/2023 alters RKAB validity, emphasizing a three-year duration for operational production. Non-compliance may lead to IUP revocation. The aim is efficient governance and stricter compliance.
- Tax and Royalties: Indonesia has increased coal sales royalties (GR 26/2022) but introduced incentives for downstream industries, eliminating royalties. GR 81/2019 to GR 26/2022 signifies a shift in the royalty landscape.
- MIP (Mitra Instansi Pengelola): Indonesia is finalizing a presidential regulation on Mandatory Domestic Market Obligation (MIP), requiring entities to contribute to a coal compensation fund for the domestic market—expected implementation in the upcoming year.
Eva's comprehensive insights shed light on the evolving regulatory landscape, offering valuable perspectives for industry players. A big thank you to Djakarta Mining Club for providing this platform!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
