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:
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.
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