The Ministry of Energy and Mineral Resources (MEMR) has recently promulgated a new decree, denoted as MEMR Decree No. 375/2023, about the expansion of Mining Business Areas (Wilayah Izin Usaha Pertambangan or “WIUP”) and Special Mining Business Areas (Wilayah Izin Usaha Pertambangan Khusus or “WIUPK”) (“MEMR Decree 375/2023"). This decree effectively supersedes the previous regulation, which had been placed under a temporary moratorium.

MEMR Decree 375/2023 introduces a series of noteworthy modifications, entailing more intricate requirements and different calculations on the compensation for the data information (kompensasi data informasi or “KDI”. To be considered eligible, applicants are required to meet the following conditions:

1. Registered in the official database.
2. A minimum of three consecutive years in active production, coupled with a commendable conservation track record.
3. Execution of detailed exploration activities across the prospective region within the boundaries of WIUP or WIUPK.
4. Submission of exploration data in the Exploration Data Warehouse application.

Moreover, a prescribed limit on the expansion area is stipulated, wherein metallic mineral WIUP is confined to 25,000 hectares, and coal WIUP is confined to 15,000 hectares. However, these limits remain subject to ministerial evaluation. Furthermore, applicants must also furnish a pre-approved working plan from the Directorate General of Mineral and Coal. Lastly, MEMR Decree 375/2023 stipulates a different calculation on the KDI pertinent to the expanded area, accounting for the total land area and the nature of the mineral deposit.

This article has been contributed by ARKO Law, a corporate law firm based in Jakarta. The above article does not, and is not intended to, constitute legal advice; instead, this article is for general informational purposes only. Information contained in this article may not include the most up-to-date legal or other information. Should the readers have any inquiries, readers can contact the authors at info@armilarako.com. Any reliance on this article is at the user’s own risk.