In a move aimed to bolstering the Indonesia mining sector, the Government Regulation Number 25 of 2023 on Mining Areas ("GR 25/2023"), that is replacing the previous Government Regulation Number 22 of 2010, has recently put into effect by the Indonesian government in order to foster a thorough and precise criteria for determining mining areas. Here is the key summary of the GR 25/2023:
A. Mining Area
According to the GR 25/2023, Legally Mining Jurisdiction ("WHP") is all the surface of land, sea, also include the subterranean part, unified as one, which located in the area of Indonesia, which also include the land area beneath the sea and the continent shelf. Mining Area or Wilayah Pertambangan ("WP") which a part of WHP, refers to as a specific area which has a potential of containing mineral and/or coal resources and does not bound to any administrative boundaries which a part of national spatial plan.
WP is being determined based on specific criteria, which encompass the presence of formations containing minerals and/or coal-bearing rocks, indications of mineral and/or coal deposits, the availability of the already established mineral and/or coal resources, and the confirmation of proven minerals and/or coal reserves.
B. Preparation of Mining Area
This regulation outlines a comprehensive process before determining WP, with the Ministry of Energy and Mineral Resources ("MEMR") taking the lead in its preparation stage. This stage involves Investigation and Research of WP, and Drafting The Plan of WP. The MEMR must undertake thorough investigation and research to assess the reserves and potential within WHP, encompassing the country's land, waters, subterranean territories, underwater areas, and continental shelf. Nevertheless, the MEMR now has the authority to assign eligible State-Owned Enterprises (BUMN), Regional-Owned Enterprises (BUMD), and private entities to conduct investigation and research activities.
Afterwards, the next stage involves Drafting The Plan of WP. According to Article 13 of the GR 25/2023, the Minister shall create a WP plan in either printed and/or digital map formats. These WP plans will serve as the foundation for determining the WP.
WP itself are categorized in four classifications, namely:
- Mining Business Area/Wilayah Usaha Pertambangan ("WUP")
WUP is a part of WP designated for commercial mining operations. It encompasses areas with confirmed mineral or coal reserves and determined by the holders of commercial mining licenses.
- People's Mining Area/Wilayah Pertambangan Rakyat ("WPR")
WPR is a part of WP intended for mining activities by local communities. This area has limited boundaries and is reserved for the engagement of local residents in mining.
- National Reserve Area/Wilayah Pencadangan Negara ("WPN")
WPN is a region set aside as a crucial mining reserve for national strategic interests. It is designated for the conservation of mineral and coal resources and does not permit commercial mining activities.
- Special Mining Business Area/Wilayah Izin Usaha Pertambangan Khusus ("WUPK")
WUPK is a part of WP with significant national importance, containing valuable mineral or coal reserves with substantial economic potential. It is designated for commercial exploitation in line with national strategic interests.
Laslty, in accordance to the GR 25/2023, the existing WP may be changed once every 5 (five) years by MEMR. Such changes can be achived by considering both proposed new mining business activities and adjustments in the form of mining concessions, subsequently leading to alterations in the designated mining areas. Please be advised that any alterations made will not impact the validity of existing permits previously granted.
Originally published by 03 August 2023
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