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Guidelines on Mining Business License

Decree of the Minister of Energy and Mineral Resources No. 78.K/MB.01/MEM.B/2022 on Guidelines on the Implementation of License Evaluations and the Registration of Any Compositional Changes of Shareholders, Directors and/or Commissioners Upon Mining Business License That Were Issued by Governors, Regents/Mayors Prior to the Promulgation of Law No. 3 of 2020

Enforcement Date: 14 April 2022

  • Establishes comprehensive guidelines on the implementation of license evaluations and the registration of any compositional changes that were made in relation to shareholders, directors and/or commissioners, as set out under Mining Business Licenses (“IUP”) issued by governors or regents/mayors prior to the promulgation of No. 3 of 2020 on the Amendment to Law No. 4 of 2009 on Mineral and Coal Mining.
  • These guidelines primarily address the following areas: 1) Procedures for the evaluation of applications to advance from the exploration stage to the production operation stage (“Advancement”) and for the evaluation of applications to extend production operation activities (“Extension”); and 2) Registrations of any compositional changes that are made in relation to shareholders, directors and/or commissioners.
  • In order to secure approvals for Advancements and/or Extensions, various requirements must be met by IUP holders at the time that they submit their applications to the Director-General of Mineral and Coal (i.e. administrative, technical, environmental and financial requirements). If said license holders meet these requirements and pass the application evaluation stage, then the Director-General will subsequently issue the relevant approvals.
  • Any approval for an Advancement or Extension which was issued prior to 14 April 2022 will remain valid. In addition, provisions that feature under the Decree that address Advancements and Extensions, as well as the registration of shareholders/directors/commissioners, will only apply to applications that are submitted prior to a deadline of 11 June 2022.

More information on this regulation is provided in Hukumonline’s publication titled “Guidelines Issued for Holders of Mining Licenses on License Evaluations and Registrations of Compositional Changes Relating to Shareholders, Directors and/or Commissioners,” as accessible to Hukumonline’s subscribers. For more details on the subscription, please contact Hukumonline’s team at

*This section is provided in collaboration with HukumOnline

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