RESUME OF

MINISTRY OF ENERGY AND MINERAL RESOURCES DECREE NO: 266.K/MB.01/MEM.B/2022

CONCERNING

THE GUIDELINES FOR APPLICATION, EVALUATION AND PROCESSING TO THE EXPANSION OF MINING BUSINESS LICENSE AREA (WIUP) AND SPECIAL MINING BUSINESS LICENSE AREA (WIUPK) IN THE FRAMEWORK OF MINERAL AND COAL CONSERVATION

Article 62A of Law No 3 of 2020 (“Mining Law”) and Article 140 of Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities (“GR 96/2021”) allow the possibility of expansion of Mining Business License Area/Wilayah Izin Usaha Pertambangan (“WIUP”) and Special Mining Business License Area/Wilayah Izin Usaha Pertambangan Khusus (“WIUPK”). However, the possible expansion could not be implemented due to the lack of  the derivative regulation concerning the guideline for expansion.  After the long-awaited finally the derivative regulation has  been issued by Ministry of Energy and Mineral Resources (“MEMR”) under MEMR Decree No. 266.K/MB.01/MEM.B/2022 concerning The Guidelines for Application, Evaluation and Processing to The Expansion of Mining Business License Area And Special Mining Business License Area In The Framework Of Mineral And Coal Conservation (“MEMR Decree 266/2022”).

MEMR Decree 266/2022 is the paramount of the expansion of WIUP/WIUPK. Under the MEMR Decree 266/2022, the procedures, requirements, limitations are detailly regulated.  The MEMR Decree 266/2022 is also governed the flowchart of application and the content of work plan (which will be explained below). Below are the key takeaways from MEMR Decree 266/2022:

1. Prior to applying for WIUP/WIUPK expansion, the applicant should obtain an approval of WIUP/WIUPK expansion work plan in advance from Directorate General of Mineral and Coal (“DGMC”). Such application is done under the first come first served principle provided that the application has satisfies all of the requirements.

2. Application on WIUP/WIUPK itself has to satisfy the following requirements:

• application letter or application through online system;
• work plan on the proposed expansion area which has obtained prior approval from DGMC (“Work Plan”);
• map and coordinates of the proposed area in accordance with the evaluation result; and
• an evidence of the payment of information data compensation in accordance with the amount set by MEMR.

3. In addition to the above requirements, the applicant has to take into account several provisions including:

• the maximum expansion area allowed (25.000 ha for metal mineral WIUP; 15.000 ha for coal WIUP, and in accordance with MEMR’s evaluation for WIUPK);
• has to be adjacent with the current WIUP/WIUPK of the applicant;
• a potential continuity of coal or mineral deposit (potensi kemenerusan lapisan batubara atau mineral) in the proposed area
• satisfaction of all obligations of the applicant including in mining business aspects and good mining principles in accordance with the prevailing laws.

4. Also, it is important to note that all submissions on the WIUP/WIUPK expansion that have been lodged prior to the effectiveness of this decree, shall be re-submitted in accordance with those requirements.