Law of The Republic of Indonesia Number 4 of Year

LAW OF THE REPUBLIC OF INDONESIA NUMBER 4 OF YEAR 2009
CONCERNING
MINERAL AND COAL MINING
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
WITH THE BLESSING OF GOD THE ALMIGHTY
Considering: a. that mineral and coal contained in the jurisdiction of mining of
Indonesia constitutes non-renewable natural resources as
bestowed by God the Almighty which plays an important role in
satisfying life necessities of many people, therefore management
thereof must be controlled by the State to give real added value
for national economy in the efforts to reach a just welfare and
prosperity of the people.
b. that the business activities of mineral and coal mining are mining
business activities other than geothermal, petroleum and natural
gas and ground water play a significant role in providing real
added value to national economy growth and regional
development in a sustainable manner;
c. that by considering national and international progress, Law
Number 11 of Year 1967 concerning Main Provisions in Mining is
not suitable any longer thus an amendment to laws in mineral
and coal mining is required which is able to manage and exploit
mineral and coal potential independently, reliably, transparently,
competitively, efficiently, and environmentally aware, to
guarantee a sustainable national development.

d. that pursuant to considerations as referred to in item 1, item b,
and item c, a Law concerning Mineral and Coal Mining needs to
be created;
In view of: Article 5 clause (1), Article 20 and Article 33 clause (2) and clause (3) of the
Constitution of the Republic of Indonesia of Year 1945;
With Joint Approval of
THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA
and
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
HEREBY RESOLVES
To enact: LAW CONCERNING MINERAL AND COAL MINING
CHAPTER I
GENERAL TERMS
Article 1
As defined herein:
1. Mining shall be part or all phases of activity in the context of research, management,
and exploitation of mineral or coal covering general survey, exploration, feasibility
study, construction, mining, processing and refining, transportation and sales, and
post-mining activities.
(2) Mineral shall be inorganic compound formed in nature, which has specific physical
and chemical properties and arranged crystal structure or combination thereof
forming rock, in loose or combined form.
(3) Coal is a sediment of carbon organic compound formed naturally from remains of
plants.
(4) Mineral Mining shall be mining of a collection of minerals in form of ore or rock,
other than geothermal, petroleum and natural gas, and ground water.
(5) Coal Mining shall be mining of carbon sediment located in the earth, including solid
bitumen, turf, and asphalt rock.
(6) Mining business shall the activities in the context of research, management, and
exploitation of mineral or coal covering general survey, exploration, feasibility
study, construction, mining, processing and refining, transportation and sales, and
post-mining activities.
(7) Mining Business Permit, hereinafter the Mining Business Permit (Izin Usaha
Pertambangan/IUP) shall be the permit to run mining business.
(8) Exploration Mining Business Permit (IUP Eksplorasi) shall be a business permit
granted to execute the activity of genera survey, exploration, and feasibility study.
(9) Production Operation Mining Business Permit (IUP Operasi Produksi) shall be a
business permit granted after completion of Exploration Mining Business Permit
(IUP Eksplorasi) to execute the phase of production operation activities. *
(10)People's Mining Permit, hereinafter People's Mining Business Permit (Izin
Pertambangan Rakyat/IPR), shall be the permit to conduct mining business within
people's mining area under limited area and investment size.
(11)Special Mining Business Permit, hereinafter Special Mining Business Permit (Izin
Usaha Pertambangan Khusus/IUPK) shall be the permit to run mining business in the
special mining business permit area.
(12)Exploration Special Mining Business Permit (IUPK Eksplorasi) shall be a business
permit granted to execute the phase of activity of general survey, exploration, and
feasibility study within the special mining area business permit.
(13)Production Operation Special Mining Business Permit (IUPK Operasi Produksi)
shall be a business permit granted after completion of execution of Exploration
Special Mining Business Permit (IUPK Eksplorasi) to to execute the phase of
production operation activities in the special mining business permit area.
(14)General Survey shall be the phase of activities of mining to find regional geology
condition and indication of presence of mineralization.
(15)Exploration shall be the phase of mining business activity to find detailed and
precise information about location, shape, dimension, distribution, quality and
measured of materials, and information concerning social condition and the
environment.
(16)Feasibility study shall be the phase of mining business activities to find detailed
information about all related aspects to find economy and technical feasibility of
mining business, including analysis about environment impact and post-mining
planning.
(17)Production Operation shall be the phase of mining business activities covering
construction, mining, processing, refining, including transportation and sales, and
environment impact control facilities conforming to the result of feasibility study.
(18)Construction shall be mining business activities to execute development of all
production operation facilities, including control of environment impact.
(19)Mining shall be part of mining business activities to produce mineral and /or coal
and their trace minerals.
(20)Processing and refining shall be mining business activities to improve the quality
of mineral and /or coal and to use and gain trace minerals.
(21)Transportation shall be a mining business activity to move minerals and /or coal
from the mine site and or processing and refining site to delivery site.
(22)Sales shall be a mining business activity to sell the product of mineral or coal
mining.
(23)Business Entity shall be every legal entity running business in mining established
based on Indonesian law and is domiciled within the territory of the Unitary State
of the Republic of Indonesia.
(24)Mining Service shall be a support service relate do the mining business activities.
(25)Environment Impact Statement (AMDAL), hereinafter AMDAL, shall be a study
about major and significant impact of a business and /or activity planned on an
environment required for decision making process about undertaking of a business
and /or activity.
(26)Reclamation shall be an activity conducted during the phase of mining business to
arrange, recover, and fix environment and ecosystem quality to allow them to
function again according to their purpose.
(27)Post mining activity, hereinafter post mining, shall be a planned, systematic, and
sustainable activity after the end of part or all of mining business activities to
recover natural environment and social functions according to local conditions at
all mining areas.
(28)Community Empowerment shall be an effort to improve the people's capability,
both individually or collectively, to improve their life quality.
(29)Mining Area, herein after Mining Area (Wilayah Pertambangan /WP) shall be areas
which have mineral and /or coal potential which are not bound by government
administrative boundary which constitutes a part of national space planning.

(30)Mining Business Area, hereinafter Mining Business Area (Wilayah Usaha
Pertambangan /WUP) shall be a part of the Mining Area (Wilayah Pertambangan /WP)
which has obtained availability of data, potential, and /or geology information.
(31)Mining Business Permit Area, hereinafter Mining Business Permit Area (Wilayah
Izin Usaha Pertambangan /WIUP) shall be areas granted for the holder of Mining
Business Permit (Izin Usaha Pertambangan/IUP).
(32)People's Mining Area, hereinafter People's Mining Area (Wilayah Pertambangan
Rakyat /WPR) shall be part of the Mining Area (Wilayah Pertambangan /WP) where
people's mining business activities take place.
(33)State Reserve Area, hereinafter State Reserve Area (Wilayah Pencadangan Negara
/WPN) shall be part of Mining Area (Wilayah Pertambangan /WP) reserved for
national strategic interest.
(34)Special Mining Business Area, hereinafter Special Mining Business Area (Wilayah
Usaha Pertambangan Khusus /WUPK) shall be part of Mining Area (Wilayah
Pertambangan /WP) which can be exploited.
(35)Special Mining Business Permit Area, hereinafter Special Mining Business Permit
Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) shall be areas granted for
the holder of Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK).
(36)The Central Government, hereinafter the Government, shall be the President of the
Republic of Indonesia who holds the power of Governance of the State of the
Republic of Indonesia as referred to in the Constitution of the State of the Republic
of Indonesia of Year 1945.

(37)The regional government shall be the governor, bupati (regent), or mayor, and local
apparatus as components of administration of regional governance.
(38)The minister shall be the minister who administers government affairs in the sector
of mineral and coal mining.
CHAPTER II PRINCIPLE
AND OBJECTIVE
Article 2
Mineral and /oar coal mining shall be managed under the principle of:
a. benefit, fairness, and balance;
b. partiality to national interest;
c. participation, transparency, and accountability;
d. sustainability and environmentally-aware.
Article 3
In the context of support of sustainable national development, the objectives of
management of mineral an coal shall be:
a. to guarantee effectiveness of execution and control of mining business activities
which are effective, productive, and competitive;
b. to guarantee the benefit of mineral and coal mining in a sustainable and
environmentally aware manner;
c. . to guarantee availability of mineral and coal as raw materials and /or source of
energy for domestic needs;
d. to support and develop national capability to be more competitive at national,
regional, and international levels;
e. to increase the income of local, regional community, and the state, and to create job
opportunities for optimum benefits of the people' welfare; and
f. to guarantee legal certainty in administering of mineral and coal mining business
activities.
CHAPTER III
POSSESSION OF MINERAL AND COAL MINING
Article 4
(39)Mineral and coal as non-renewable natural resource is a national asset possessed by
the state for optimum benefit of the people's welfare.
(40)Possession of mineral and coal by the state as referred to in clause (1) shall be under
administering by the Government and /or regional government.
Article 5
(41)For national interest, the Government, after a consult with the House of
Representatives of the Republic of Indonesia, may stipulate a policy of prioritizing
mineral and /or coal for domestic interest.
(42)The national interest as referred to in clause (1) can be made by control of production
and export.
(43)In running the control as referred to in clause (2) the Government holds the
authority to define production amount of each commodity per year for each
province.
(44)The regional government shall comply with the defined amount stipulated by the
Government as referred to in clause (3).
(45)Further provisions concerning prioritizing of mineral and /or coal for domestic
interest as referred to in clause (1) and control of production and export as referred
to in clause (2) and clause (3) shall be regulated in a government regulation.

CHAPTER IV
AUTHORITY IN MANAGEMENT OF MINERAL AND COAL MINING
Article 6
(1) The Government's Authority in management of mineral and coal mining among else
shall be:
a. stipulation of national policy;
c. creation of laws;
c. stipulation of national standard, guidance, and criteria;
d. stipulation of national mineral and coal mining permit system;
e. stipulation of Mining Area (Wilayah Pertambangan /WP) which is made after a
coordination with the local government and consult with the House of
Representatives of the Republic of Indonesia;
f. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,
settlement of people's conflict, and supervision of mining business which location
is crossing province and /or ocean areas exceeding 12 (twelve) miles from the
shore line;
g. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,
settlement of people's conflict, and supervision of mining business which mining
location is within province and /or ocean areas exceeding 12 (twelve) miles from
the shore line;
h. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,
settlement of people's conflict, and supervision of production operation mining
business which direct environment impact is crossing province and /or ocean areas
exceeding 12 (twelve) miles from the shore line;

i. grant of Exploration Special Mining Business Permit (IUPK Eksplorasi), and
Production Operation Special Mining Business Permit (IUPK Operasi Produksi);
j. evaluation of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) issued by the regional government which has caused environment damage
and did not apply good mining rules;
k. stipulation of production, marketing, utilization, and conservation policies;
l. stipulation of collaboration, partnership, and people's empowerment policies;
m. formulation and stipulation of non-tax state income from mineral and coal mining
business revenue;
n. assistance and supervision of administering of mineral and coal mining
management run by the regional government;
o. assistance and supervision of formulation of regional regulation in mining;
p. inventory, investigation, and research and exploration in the context to acquire data
and information on mineral and coal as the materials to devise (Wilayah Usaha
Pertambangan Khusus /WUPK) and State Reserve Area (Wilayah Pencadangan Negara
/WPN);
q. management of geological information, mineral resource and coal potential
information, and mining information at national level;
r. assistance and supervision on post mining land reclamation;
s. stipulation of national level mineral and coal resource balance;
t. development and improvement of added value of mining business activities; and
u. improvement of the capability of the apparatus of the Government, provincial
government, and regency (kabupaten) /municipality government in administering
of mining business management.

Article 7
(1) The regional government's authority in management of mineral and coal mining
among else shall be:
a. creation of regional laws;
b. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,
settlement of people's conflict, and supervision of mining business which location
is crossing kabupaten (regency)/municipality and /or ocean areas in 4 (four)
miles to 12 (twelve) miles;
c. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,
settlement of people's conflict, and supervision of production operation mining
business which activity is crossing kabupaten (regency)/municipality and /or
ocean areas in 4 (four) miles to 12 (twelve) miles;
d. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), assistance,
settlement of people's conflict, and supervision of mining business which direct
environment impact is crossing kabupaten (regency)/municipality and /or ocean
areas in 4 (four) miles to 12 (twelve) miles
e. inventory, investigation, and research and exploration in the context to acquire
data and information on mineral and coal conforming to its authority;
f. management of geological information, mineral and coal resource potential
information, and mining information at regional /local level;
g. devise of mineral and coal resource balance at provincial region/ area level;
h. development and improvement of added value of mining business activities in
the province;
i. development and improvement of people's participation in the mining business

by taking into account preservation of the environment;
j. coordinating the permitting and supervision of utilization of explosives in mining
area in accordance with their authority;
k. delivering information concerning the result of inventory, general survey, and
research and exploration to the Minister and regent (bupati) /mayor;
l. delivering information concerning the result of production, domestic and export
sales to the Minister and regent (bupati) /mayor;
m. assistance and supervision on post mining land reclamation;
n improvement of the capability of the apparatus of the provincial government and
regency (kabupaten) /municipality government in administering of mining
business management.
(2) The provincial government's authority as referred to in clause (1) shall be exercised
pursuant to the provisions of laws and legislations.
Article 8
(1) The authority of the regency /municipality government in management of mineral
and coal mining among else shall be:
a. creation of regional laws;
b. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), People's Mining
Business Permit (Izin Pertambangan Rakyat/IPR) assistance, settlement of people's
conflict, and supervision of mining business within the area of the regency
(kabupaten) /municipality and /or ocean area within 4 (four) miles;
c. grant of Mining Business Permit (Izin Usaha Pertambangan/IUP), People's Mining
Business Permit (Izin Pertambangan Rakyat/IPR) assistance, settlement of people's

conflict, and supervision of production operation mining business which activity
is located within the territory of the regency (kabupaten) /municipality and /or
ocean area within 4 (four) miles;
d. inventory, investigation and research, and exploration in the context to acquire
data and information on mineral and coal;
e. management of geological information, mineral and coal resource potential
information, and mining information at kabupaten (regency) /municipality level;
f. a devise of mineral and coal resource balance in the kabupaten (regency)
/municipality level;
g. development and empowerment of the local people in mining business by taking
into account preservation of the environment;
h. development and improvement of added value and benefit of mining business
activities optimally;
i. delivery of information resulting from inventory, general survey, and research,
and exploration and exploitation to the Minister and the governor;
j delivering information concerning the result of production, domestic and export
sales to the Minister and the governor;
k. assistance and supervision on post mining land reclamation; and
l. improvement of the capability of the apparatus of the regency (kabupaten)
/municipality government in administering of mining business management.
(2) The authority of the kabupaten (regency) /municipality government as referred to in
clause (1) shall be exercised pursuant to the provisions of laws and legislations.
CHAPTER V
MINING AREA
Section One General
Article 9
(46)The Mining Area (Wilayah Pertambangan /WP) as a part of national space planning
shall become a base for stipulation of mining activities.
(47)The Mining Area (Wilayah Pertambangan /WP) as referred to in clause (1) shall be
stipulated by the Government after a coordination with the regional government and
a consult with the House of Representatives of the Republic of Indonesia;
Article 10
Stipulation of Mining Area (Wilayah Pertambangan /WP) as referred to in clause Article
(2) shall be executed:
a. in a transparent, participative, and responsible manner;
b. in an integrated manner by considering opinions from related government
institutions, the people, and by considering the aspects of ecology, economy, and
social culture, and has environment insight; and
c. by considering aspiration of the region.
Article 11
The government and the regional government shall conduct survey and research of
mining in the context of preparation of Mining Area (Wilayah Pertambangan /WP).
Article 12
Further provisions concerning limit, size, and mechanism of stipulation of WP as
referred to in Article 9, Article 10, and Article 11 shall be regulated under a government
regulation.
Article 13
Mining Area (Wilayah Pertambangan /WP) comprises of:

a. (Wilayah Usaha Pertambangan Khusus /WUPK);
b. People's Mining Area (Wilayah Pertambangan Rakyat /WPR); and
c. State Reserve Area (Wilayah Pencadangan Negara /WPN).
Section Two
Mining Business Area
Article 14
(48)Stipulation of a (Wilayah Usaha Pertambangan Khusus /WUPK) shall be made by the
Government after a consult with the regional government and submitted in writing
to the House of Representatives of the Republic of Indonesia.
(49)The coordination as referred to in clause (1) shall be conducted by the respective
regional government conforming to data and information the Government and the
local government have in hand.
Article 15
The Government may delegate part of its authority in stipulation of a Mining Area
(Wilayah Pertambangan /WP) as referred to in Article 14 clause (1) to the provincial
government in accordance with the provisions of laws and legislations.
Article 16
One (Wilayah Usaha Pertambangan Khusus /WUPK) shall consist of 1 (one) ore more
Special Mining Business Permit Areas (Wilayah Izin Usaha Pertambangan Khusus/WIUPK)
which location is crossing territory of the province, crossing territory of the kabupaten
(regency) /municipality, and /or within 1 (one) kabupaten (regency) /municipality
area.
Article 17
Size and limit of Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
Khusus/WIUPK) for metal and coal materials shall be stipulated by the Government
under coordination with the regional government based on criteria the Government
possesses.
Article 18
The criteria to stipulate 1 (one) or more Special Mining Business Permit Areas (Wilayah
Izin Usaha Pertambangan Khusus/WIUPK) in 1 (one) Mining Business Area (Wilayah Usaha
Pertambangan /WUP) shall be as follows:
a. geographical location;
b. conservation rules;
c. environment protection bearing capacity;
d. optimization of mineral and /or coal resource; and
e. population density level.
Article 19
Further provisions concerning procedure of stipulation of boundary and size of a
Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) as referred to in
Article 17 shall be regulated under a government regulation.
Section Three
People's Mining Area (Wilayah
Pertambangan Rakyat /WPR)
Article 20
People's mining activities shall be executed in a People's Mining Area (Wilayah
Pertambangan Rakyat /WPR).
Article 21
The People's Mining Area (Wilayah Pertambangan Rakyat /WPR) as referred to in Article
20 shall be stipulated by the bupati (regent) /mayor after a consult with the Legislative
Council of the kabupaten (regency) /municipality (Dewan Perwakilan Rakyat Daerah
Kabupaten /Kota).
Article 22
The criteria for stipulation of a People's Mining Area (Wilayah Pertambangan Rakyat
/WPR) shall be as follows:
a. it has a secondary mineral reserve located in a river and /between river banks;
b. it has metal or coal primary reserve at the depth of a maximum of 25 (twenty-five)
meters;
c. sedimentation of terrace, flood plain, and sedimentation of ancient river;
d. maximum People's Mining Area (Wilayah Pertambangan Rakyat /WPR) size shall be 25
(twenty-five) hectares;
e. stating type of commodity to mine; and /or
f. it is an area or location of people's mine activity which has been exploited for at least
15 (fifteen) years.
Article 23
In stipulation of a People's Mining Area (Wilayah Pertambangan Rakyat /WPR) as referred
to in Article 21, the bupati (regent) /mayor shall make an announcement concerning the
People's Mining Area (Wilayah Pertambangan Rakyat /WPR) plan to the public openly.
Article 24
The location or area of People's Mining Area (Wilayah Pertambangan Rakyat /WPR) which
has been exploited but not yet stipulated as a People's Mining Area (Wilayah
Pertambangan Rakyat /WPR) shall be given priority to be stipulated as a People's Mining
Area (Wilayah Pertambangan Rakyat /WPR).

Article 25
Further provisions concerning guidance, procedure, and stipulation of a People's Mining
Area (Wilayah Pertambangan Rakyat /WPR) as referred to in Article 21 and Article 23 shall
be regulated under a government regulation.
Further provisions concerning criteria and mechanism of stipulation of a People's
Mining Area (Wilayah Pertambangan Rakyat /WPR) as referred to in Article 22 and Article
23 shall be regulated under a regulation of the kabupaten (regency) /municipality.
Section Four
State Reserve Area
Article 27
(50)For national strategic interest, the Government, with approval of the House of
Representatives of the Republic of Indonesia and by considering local aspiration and
stipulating the State Reserve Area (Wilayah Pencadangan Negara /WPN) as an area
reserved for specific commodity and conservation area in the context of maintaining
ecosystem and environment balance.
(51)Part area size of a State Reserve Area (Wilayah Pencadangan Negara /WPN) stipulated
for a specific commodity as referred to in clause (1) may be exploited after an
approval from the House of the Representatives of the Republic of Indonesia.
(52)A time limit for the State Reserve Area (Wilayah Pencadangan Negara /WPN)
stipulated for conservation as referred to in clause (1) is stipulated with an approval
from the House of the Representatives of the Republic of Indonesia.
(53)The area which will be exploited as referred to in clause (2) and clause (3) will
change status into a Special Mining Business Area (Wilayah Usaha Pertambangan
Khusus /WUPK).
Article 28
The change of status of a State Reserve Area (Wilayah Pencadangan Negara /WPN) as
referred to in Article 27 clause (2), clause (3), and clause (4) into a Special Mining
Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) may be made by
considering:
a. supply of domestic industry and energy raw materials;
b. source of national foreign exchange;
c. regional condition based on limitation of infrastructure and facilities;
d. has a potential to develop as an economy growth center;
e. environment bearing capacity; and /or
f. utilization of high technology and big capital investment.
Article 29
(54)The Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) as
referred to in Article 24 clause (4) to exploit shall be stipulated by the Government
after a coordination with the regional government.
(55)Execution of mining business activities in the Special Mining Business Area (Wilayah
Usaha Pertambangan Khusus /WUPK) as referred to in clause (1) shall be conducted in
form of a Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).
Article 30
One Special Mining Business Area (Wilayah Usaha Pertambangan Khusus /WUPK) shall
consist of 1 (one) ore more Special Mining Business Permit Areas (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK) which location is crossing territory of the province,
crossing territory of the kabupaten (regency) /municipality, and /or within 1 (one)
kabupaten (regency) /municipality area.

Article 31
Size and limit of the Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK) for metal and coal materials shall be stipulated by the
Government under coordination with the regional government based on criteria and
information the Government possesses.
Article 32
The criteria to stipulate 1 (one) or more Special Mining Business Permit Areas (Wilayah
Izin Usaha Pertambangan Khusus/WIUPK) in 1 (one) Special Mining Business Area
(Wilayah Usaha Pertambangan Khusus /WUPK) shall be as follows:
a. geographical location;
b. conservation rules;
c. environment protection bearing capacity;
d. optimization of mineral and /or coal resource; and
e. population density level.
Article 33
Further provisions concerning procedure of stipulation of size and bondary of a Special
Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) as
referred to in Article 31 and Article 32 shall be regulated under a government regulation.
CHAPTER VI
MINING BUSINESS
Article 34
(1) Mining business is categorized into:
a. mineral mining; and
b. coal mining
(2) The mineral mining as referred to in clause (1) item a is categorized into:
a. radioactive mineral mining;
b. metal mineral mining;
c. non-metal mineral mining; and
d. rock mining.
(3) Further provisions concerning stipulation of a mine commodity into a mineral
mining group as referred to in clause (2) shall be regulated under a government
regulation.
Article 35
The mining business as referred to in Article 34 shall be executed in form of:
a. Mining Business Permit (Izin Usaha Pertambangan/IUP);
b. People's Mining Business Permit (Izin Pertambangan Rakyat/IPR); dan
c. Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).
CHAPTER VII
MINING BUSINESS PERMIT (IZIN USAHA PERTAMBANGAN/IUP)
Section One
General
Article 36
(1) Mining Business Permit (Izin Usaha Pertambangan/IUP) comprises of two phases:
a. Exploration Mining Business Permit (IUP Eksplorasi) covering the activity of
general survey, exploration, and feasibility study;
b. Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
covering the activities of construction, mining, processing, and refining, and
transportation and sales.

(2) The holder of the Exploration Mining Business Permit (IUP Eksplorasi) and
Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) may
run some of or all activities as referred to in clause (1).
Article 37
The Mining Business Permit (Izin Usaha Pertambangan/IUP) is granted by:
a. the bupati /mayor if the Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan /WIUP) is located within a territory of a kabupaten (regency)
/municipality;
b. the governor, if the Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
/WIUP) is located crossing the territories of the kabupaten /municipality in 1 (one)
province after a recommendation from the respective bupati (regent) /mayor
conforming to the provisions of laws and legislations; and
c. b. the Minister, if the Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan /WIUP) is located crossing the territories of the province after a
recommendation from the respective governor and bupati (regent) /mayor
conforming to the provisions of laws and legislations.
Article 38
The Mining Business Permit (Izin Usaha Pertambangan/IUP) can be awarded to:
a. a business entity;
b. a cooperative; and
c. an individual.
Article 39
(1) The Exploration Mining Business Permit (IUP Eksplorasi) as referred to in Article 36
clause (1) item a shall include at least:

a. name of the company;
b. location and size of area;
c. general spatial planning;
d. surety bond;
e. investment capital;
f. time extension of an activity phase;
g. rights and obligations of the holder of the Mining Business Permit (Izin
Usaha Pertambangan/IUP);
h. duration of validity of activity phase;
j. type of business awarded;
j. plan for development and empowerment of the community in the vicinity of the
mining area;
k. taxation;
l. settlement of dispute;
m. fixed fee and exploration fee; and
n. AMDAL (Environment Impact Statement).
(2) The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) as
referred to in Article 36 clause (1) item a shall include at least:
b. size of area;
c. location of mining;
d. location of processing and refining;
e. transportation and sales;
f. investment capital;
g. duration of validity of the Mining Business Permit (Izin Usaha
Pertambangan/IUP);
h. duration of activity phase;
i. settlement of land issues;
j. the environment including post mining reclamation;
k. reclamation and post mining bond fund;
l. Extension of the Mining Business Permit (Izin Usaha Pertambangan/IUP);
m. rights and obligations of the holder of the Mining Business Permit (Izin Usaha
Pertambangan/IUP);
n. plan for development and empowerment of the community in the vicinity of
the mining area;
o. taxation;
p. non tax state income comprises of fixed fee and production fee;
q. settlement of dispute;
r. work safety and health;
s. conservation of mineral or coal;
t. utilization of domestic goods and services;
u. application of good economy and mining engineering rules;
v. improvement of Indonesian workers;
w. management of mineral or coal data; and
x. mastery, development, and implementation of mineral or coal mining
technology;
Article 40
(56)The Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in Article

36 clause (1) shall be granted for 1 (one) type of mineral or coal.
(57)The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred
to in clause (1) who discovers other minerals in the managed Mining Business
Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) shall be given priority for
exploitation thereof.
(58)The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) who
intends to exploit other minerals as referred to in clause (2) shall submit a new
Mining Business Permit (Izin Usaha Pertambangan/IUP) proposal to the Minister,
the governor, the bupati (regent) /mayor in accordance with their authority.
(59)The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred
to in clause (2) may state his /her unwillingness to exploit the other minerals
discovered.
(60)The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) who is
not willing to exploit the other minerals discovered as referred to in clause (4),
shall safeguard the other mineral to prevent utilization by other party.
(61)The Mining Business Permit (Izin Usaha Pertambangan/IUP) for the other mineral
as referred to in clause (4) and (5) may be granted to another party by the Minister,
the governor, and the bupati (regent) /mayor in accordance with their authority.
The Mining Business Permit (Izin Usaha Pertambangan/IUP) shall not be used for purpose
other than intended in the grant of the Mining Business Permit (Izin Usaha
Pertambangan/IUP).
Section Two
Exploration Mining Business Permit (IUP Eksplorasi)

Article 42
(62)The Exploration Mining Business Permit (IUP Eksplorasi) for metal mineral mining
may be granted for a period of a maximum of 8 (eight) years.
(63)The Exploration Mining Business Permit (IUP Eksplorasi) for non metal mineral
mining may be granted for a maximum period of 3 (three0 Years and specific non
metal mineral may be granted for a maximum period of 7 (seven) years.
(64)The Exploration Mining Business Permit (IUP Eksplorasi) for rock mineral mining
may be granted for a period of a maximum of 3 (three) years.
(65)The Exploration Mining Business Permit (IUP Eksplorasi) for coal mineral mining
may be granted for a period of a maximum of 7 (seven) years.
Article 43
(66)In case of the activity of exploration and the activity of feasibility study, the holder
of the Exploration Mining Business Permit (IUP Eksplorasi) who obtains excavated
mineral or coal shall submit a report to the grantor of the Mining Business Permit
(Izin Usaha Pertambangan/IUP).
(67)The holder of the Exploration Mining Business Permit (IUP Eksplorasi) intending to
sell the mineral or coal as referred to in clause (1) shall propose for a temporary
permit to conduct transportation and sales.
Article 44
The temporary permit as referred to in Article 43 clause (2) shall be granted by the
Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority.
Article 45
To the excavated mineral or coal as referred to in Article 43, a production fee may be
imposed.
Section Three
Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
Article 46
(68)Every holder of a Exploration Mining Business Permit (IUP Eksplorasi) is guaranteed
to obtain a Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) as a continuance of his /her mining business activity.
(69)The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP)
may be granted to a business entity, cooperative, or an individual upon the result of
bid of a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for
metal or coal mineral which have obtained data of the result of feasibility study.
Article 47
for metal mineral mining may be granted for a maximum period of 20 (twenty) years
and may be extended twice, respectively for 10 (ten) years.
for non metal mineral mining may be granted for a maximum period of 10 (ten)
years and may be extended twice, respectively for 5 (five) years.
for non specific type of metal mineral mining may be granted for a maximum period
of 20 (twenty) years and may be extended twice, respectively for 10 (ten) years. ,
for rock mining may be granted for a maximum period of 5 (five) years and may be
extended twice, respectively for 5 (five) years.
for coal mining may be granted for a maximum period of 20 (twenty) years and may
be extended twice, respectively for 10 (ten) years.
Article 48
The Production Operation Mining Business Permit (IUP Operasi Produksi /IUPOP) is
granted by:
a. the bupati (regent)/mayor if the location of mining, the location of processing and
refining, and seaport is within a territory of a kabupaten (regency) /municipality;
b. the governor, if the if the location of mining, the location of processing and refining,
and seaport is crossing territories of separate kabupaten (regencies)/municipalities
after a recommendation from the respective bupati (regent) /mayor conforming to
the provisions of laws and legislations; and
c. the MInister, if the if the location of mining, the location of processing and refining,
and seaport is in the territory of another province after a recommendation from the
respective bupati (regent) /mayor conforming to the provisions of laws and
legislations.
Article 49
Further provisions concerning procedure of grant of Exploration Mining Business
Permit (IUP Eksplorasi) as referred to in Article 42 and Production Operation Mining
Business Permit (IUP Operasi Produksi /IUPOP) as referred to in Article 46 shall be
regulated under a government regulation.
Section Four
Mineral Mining
Paragraph 1
Radioactive Mineral Mining
Article 50
The Mining Business Area (Wilayah Usaha Pertambangan /WUP) for radioactive minerals
shall be stipulated by the Government and its exploitation shall be executed in
accordance with the provisions of laws and legislations.
Paragraph 2
Metal Mineral Mining
Article 51
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for metal
mineral shall be granted to a business entity, cooperative, and individual through a bid.
Article 52
(75)The holder of Exploration Mining Business Permit (IUP Eksplorasi) for metal mineral
shall be granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
/WIUP) with minimum size of 5,000 (five thousand hectares) and a maximum of
100,000 (one hundred thousand) hectares.
(76)On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for metal
mineral has been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP)
may be given to another party to exploit another mineral which discovery is
separate.
(77)The grant of Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in
clause (2) shall be made after considering opinions from the first holder of a Mining
Article 53
The holder of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) for metal mineral shall be granted a Mining Business Permit Area (Wilayah Izin
Usaha Pertambangan /WIUP) for a maximum size of 25,000 (twenty-five thousand)
hectares.
Paragraph 3
Non Metal Mineral Mining
Article 54
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for non
metal mineral shall be granted to a business entity, cooperative, and individual through
a proposal for an area to the grantor of permit as referred to in Article 37.
Article 55
(78)The holder of Exploration Mining Business Permit (IUP Eksplorasi) for non metal
mineral shall be granted a Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan /WIUP) with minimum size of 500 (five hundred hectares) and a
maximum of 25,000 (twenty-five thousand) hectares.
(79)On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for non
metal minerals has been granted, a Mining Business Permit (Izin Usaha
Pertambangan/IUP) may be given to another party to exploit another mineral which
discovery is separate.
Article 56
/IUPOP) of non metal mineral shall be granted a Mining Business Permit Area (Wilayah
Izin Usaha Pertambangan /WIUP) for a maximum size of 5,000 (five thousand) hectares.
Paragraph 4
Rock Mining
Article 57
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for rock
shall be granted to a business entity, cooperative, and individual through a proposal for
an area to the grantor of permit as referred to in Article 37.
Article 58
(81)The holder of Exploration Mining Business Permit (IUP Eksplorasi) for rock shall be
granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP)
with minimum size of 5 (five hectares) and a maximum of 5,000 (five thousand)
hectares.
(82)On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for rock has
been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be given
to another party to exploit another mineral which discovery is separate.
Article 59
/IUPOP) for rock shall be granted a Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan /WIUP) for a maximum size of 1,000 (one thousand) hectares.

Section Five
Coal Mining
Article 60
The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) for coal shall
be granted to a business entity, cooperative, and individual through a bid.
Article 61
(84)The holder of Exploration Mining Business Permit (IUP Eksplorasi) for coal shall be
granted a Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP)
with minimum size of 5,000 (five thousand hectares) and a maximum of 50,000 (fifty
thousand) hectares.
(85)On an area where a Exploration Mining Business Permit (IUP Eksplorasi) for coal has
been granted, a Mining Business Permit (Izin Usaha Pertambangan/IUP) may be given
to another party to exploit the mineral which discovery is separate.
Article 62
/IUPOP) for coal shall be granted a Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan /WIUP) for a maximum size of 15,000 (fifteen thousand) hectares.
Article 63
Further provisions concerning procedure to obtain the Mining Business Permit Area
(Wilayah Izin Usaha Pertambangan /WIUP) as referred to in Article 51, Article 54, Article
57, and Article 60 shall be regulated under a government regulation.

CHAPTER VIII
REQUIREMENTS FOR MINING BUSINESS PERMIT
Article 64
The government and the local government, in accordance with their authority shall
announce the plan of the mining business activities in the Mining Business Permit Area
(Wilayah Izin Usaha Pertambangan /WIUP) as referred to in Article 16 and grant the
Exploration Mining Business Permit (IUP Eksplorasi) and Production Operation Mining
Business Permit (IUP Operasi Produksi /IUPOP) as referred to in Article 36 to the public
openly.
Article 65
(87)The business entity, cooperative, and individual, as referred to in Article 51, Article
54, Article 57, and Article 60 mining a mining business shall be obliged to meet
administrative, technical, environment, and financial requirements.
(88)Further terms pertaining to the administrative, technical, environment, and financial
requirements as referred to in clause (1) shall be regulated under a government
regulation.
CHAPTER IX
PEOPLE'S MINING PERMIT
Article 66
The people's mining activity as referred to in Article 20 shall be categorized as follows:
a. metal mineral mining;
b. non metal mineral mining;
c. rock mining; and /or
d. coal mining.
Article 67
(89)The bupati (regent) /mayor grants the People's Mining Business Permit (Izin
Pertambangan Rakyat/IPR) in particular for the local people, be them individuals or
community group and /or cooperative.
(90)The bupati (regent) /mayor may delegate the authority of execution of grant of
People's Mining Business Permit (Izin Pertambangan Rakyat/IPR)as referred to in
clause (1) to the chief of subdistrict (camat) pursuant to the provisions of laws and
legislations.
(3) To obtain the People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) as
referred to in clause (1), the applicant shall submit a proposal to the bupati (regent)
/mayor.
Article 68
(1) The size of area for 1 (one) People's Mining Business Permit (Izin Pertambangan
Rakyat/IPR) which may be granted to:
a. an individual is a maximum of 1 (one) hectare;
b. a community group is a maximum of 5 (five) hectares; and /or
c. a cooperative is a maximum of 10 (one) hectare;
(2) The People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall be given
for a maximum period of 5 (five) years which may be extended.
Article 69
The holder of a People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall be
entitled to:
a. get an assistance and supervision in work safety and health, the environment mining
engineering, and management from the government and /or regional government;
and
b. receive capital aid in accordance with the provisions of laws and legislations.
Article 70
The holder of a People's Mining Business Permit (Izin Pertambangan Rakyat/IPR) shall:
a. execute mining activities no later than 3 (three) months after the People's Mining
Business Permit (Izin Pertambangan Rakyat/IPR) is issued;
b. comply with the provisions of laws and legislations in work safety and health in
mining, environment management, and meet applicable standards;
c. manage the environment with the local government;
d. pay a fixed fee and exploration fee; and
e. submit a report of execution of people's mining business activities regularly to the
grantor of the People's Mining Business Permit (Izin Pertambangan Rakyat/IPR).
Article 71
(91)As addition to matters as referred to in Article 70, the holder of a People's Mining
Business Permit (Izin Pertambangan Rakyat/IPR) in running the activities of people's
mining as referred to in Article 66 shall comply with mining technical requirements.
(92)Further provisions concerning mining technical requirements as referred to in clause
(1) shall be regulated under a government regulation.
Article 72
Further provisions concerning procedure of grant of a People's Mining Business Permit
(Izin Pertambangan Rakyat/IPR) shall be regulated under a kabupaten
(regency)/municipality local regulation.
Article 73
(93)The government of the kabupaten (regency)/municipality runs assistance in

exploitation, mining technology, and investment and marketing in the context of
improving the capability of the people's mining business.
(94)The government of the kabupaten (regency)/municipality shall be responsible for
technical safeguarding on people's mining business covering:
a. work safety and health;
b. management of the environment;
c. post mining.
(95)To execute technical safeguarding as referred to in clause (2), the government of the
kabupaten (regency)/municipality shall appoint a mine inspector functional officer
in accordance with the provisions of laws and legislations.
(96)The government of the kabupaten (regency)/municipality shall take a record of
production of all people's mining business activities in its region and shall report
thereof regularly to the Minister and respective governor.
CHAPTER X
SPECIAL MINING BUSINESS PERMIT (IZIN
USAHA PERTAMBANGAN KHUSUS /IUPK)
Article 74
(1) A Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be
granted by the Minister by considering regional interest.
(97)The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as
referred to in clause (1) shall be granted for 1 (one) type of mineral or coal in 1 (one)
Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
Khusus/WIUPK).
(98)The holder of a Special Mining Business Permit (Izin Usaha Pertambangan

Khusus/IUPK) as referred to in clause (1) who discovers other minerals in the
managed Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
Khusus/WIUPK) shall be given priority for exploitation thereof.
(99)The holder of the Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) who intends to exploit other minerals as referred to in clause (2) shall
submit a new Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) proposal to the Minister.
(5) The holder of a Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) as referred to in clause (2) may state his /her unwillingness to exploit
the other minerals discovered.
(100)The holder of the Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) who is not willing to exploit the other minerals discovered as referred
to in clause (4), shall safeguard the other mineral to prevent utilization by other
party.
(101)The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) for the
other mineral as referred to in clause (4) and (5) may be granted to another party by
the Minister.
Article 75
(102)The grant of Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) as referred to in Article 74 clause (1) shall be made based on
considerations as referred to in Article 28.
(103)The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as
referred to in clause (1) may be granted to a business entity which has Indonesian
legal entity, be it in form of a state owned legal entity, a regional owned legal entity,
or a private business entity.
(104)The state owned business entity and regional owned business entity as referred to
in paragraph (2) shall be given priority in obtaining the Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK).
(105)For the private business entity as referred to in clause (2), obtaining a Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be conducted
through bid of a Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK).
Article 76
(1) The Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)
comprises of two phases:
a. Exploration Special Mining Business Permit (IUPK Eksplorasi)covering the activity
of general survey, exploration, and feasibility study;
b. Production Operation Special Mining Business Permit (IUPK Operasi Produksi)
covering the activities of construction, mining, processing, and refining, and
transportation and sales.
(106)The holder of the Exploration Special Mining Business Permit (IUPK Eksplorasi) and
Production Operation Special Mining Business Permit (IUPK Operasi Produksi) may
run some of or all activities as referred to in clause (1).
(107)Further provisions concerning procedure to obtain a Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in clause (1) shall be
regulated under a government regulation.
Article 77
(108)Every holder of a Exploration Special Mining Business Permit (IUPK Eksplorasi) is
guaranteed to obtain a Production Operation Special Mining Business Permit (IUPK
Operasi Produksi) as a continuance of his /her mining business activity.
(109)The Production Operation Special Mining Business Permit (IUPK Operasi Produksi)
may be granted to a business entity which is an Indonesian legal entity as referred to
in Article 75 clause (3) and clause (4) which has obtained the data of result of
feasibility study.
Article 78
The Exploration Special Mining Business Permit (IUPK Eksplorasi) as referred to in
Article 76 clause (1) item a shall include at least:
b. size and location of area;
c. general spatial planning;
d. surety bond;
e. investment capital;
f. time extension of an activity phase;
g. rights and obligations of the holder of the Special Mining Business Permit (Izin
Usaha Pertambangan Khusus/IUPK);
h. duration of activity phase;
j. type of business awarded;
j. plan for development and empowerment of the community in the vicinity of the
mining area;
k. taxation;
l. settlement of dispute and land issues;

m. fixed fee and exploration fee; and
n. AMDAL (Environment Impact Statement).
Article 79
The Production Operation Special Mining Business Permit (IUPK Operasi Produksi) as
referred to in Article 76 clause (1) item b shall include at least:
b. size of area;
c. location of mining;
d. location of processing and refining;
e. transportation and sales;
f. investment capital;
g. duration of activity phase;
h. settlement of land issues;
i. the environment including post mining reclamation;
j. reclamation and post mining bond fund;
k. duration of validity of the Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK);
l. extension of the Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK);
m. rights and obligations;
n. development and empowerment of the community in the vicinity of the mining area;
o. taxation;
p. fixed fee and production fee and state /regional income portion, comprises of profit
sharing of net profit since production;

q. settlement of dispute;
r. work safety and health;
s. conservation of mineral or coal;
f. utilization of domestic goods, services, technology, engineering and construction
capability;
u. application of good economy and mining engineering rules;
v. improvement of Indonesian workers;
w. management of mineral or coal data;
x. mastery, development, and implementation of mineral or coal mining technology;
and
y. divestment of shares
Article 80
The Mining Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)
shall not be used for purpose other than intended in the grant of the Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK).
Article 81
(110)In case of the activity of exploration and the activity of feasibility study, the holder
of the Exploration Special Mining Business Permit (IUPK Eksplorasi) who obtains
excavated mineral or coal shall submit a report to the Minister.
(111)The holder of the Exploration Special Mining Business Permit (IUPK Eksplorasi)
intending to sell the metal mineral or coal as referred to in paragraph (1) shall
propose for a temporary permit to conduct transportation and sales.
(112)The temporary permit as referred to in clause (2) shall be granted by the Minister.
Article 82
To the excavated mineral or coal as referred to in Article 81, a production fee may be
imposed.
The requirement for size of are and time limit conforming to mining business category
applicable for a holder of Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) covers:
a. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK) for the phase of activity ofmetal mineral mining
exploration shall be given at a maximum size of 100,000 (one hundred thousand)
hectares.
b. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK) for the phase of production operation of metal mineral
mining shall be given at a maximum size of 25,000 (twenty-five thousand) hectares.
c. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK) for the phase of exploration activity shall be given at a
maximum size of 50,000 (fifty thousand) hectares.
d. the size of 1 (one) Special Mining Business Permit Area (Wilayah Izin Usaha
Pertambangan Khusus/WIUPK) for the phase of production operation activity shall be
given at a maximum size of 15,000 (fifteen thousand) hectares.
e. The Exploration Special Mining Business Permit (IUPK Eksplorasi) for metal mineral
mining may be granted for a period of a maximum of 8 (eight) years.
f. The Exploration Special Mining Business Permit (IUPK Eksplorasi) for coal mining
may be granted for a period of a maximum of 7 (seven) years.
g. The Production Operation Special Mining Business Permit (IUPK Operasi Produksi)
for metal mineral or coal mining may be granted for a maximum period of 20
(twenty) years and may be extended twice, respectively for 10 (ten) years.
Article 84
Further provisions concerning procedure to obtain the Special Mining Business Permit
Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) as referred to in Article 74 clause
(2) and clause (3), and Article 75 clause (3) shall be regulated under a government
regulation.
CHAPTER XI
REQUIREMENTS FOR SPECIAL MINING BUSINESS PERMIT
Article 85
The government shall announce the plan of the mining business activities in the Special
Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) as
referred to in Article 30 and grant the Exploration Special Mining Business Permit (IUPK
Eksplorasi) and Production Operation Special Mining Business Permit (IUPK Operasi
Produksi) as referred to in Article 76 to the public openly.
(113)The business entity as referred to in Article 75 clause (2) which running the activity
in the Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
Khusus/WIUPK) shall satisfy administrative, technical, environment, and financial
requirements.
(114)Further terms pertaining to the administrative, technical, environment, and
financial requirements as referred to in paragraph (1) shall be regulated under a
government regulation.
CHAPTER XII
MINING DATA
Article 87
To support preparation of the Mining Area (Wilayah Pertambangan /WP) and
development of mining knowledge and technology, the Minister or the governor,
conforming to their authority may assign a state and /or regional research institution to
conduct survey and research in mining.
Article 88
(1) The data acquired from the mining business activity shall be the data owned by the
Government and /or regional government conforming to their authority.
(115)The data of mining business owned by the regional government shall be delivered
to the Government for national level mining data processing.
(116)The data processing as referred to in clause (1) shall be administered by the
Government and /or regional government conforming to their authority.
Article 89
Further provisions concerning procedure of assigning survey and research as referred to
in Article 87 and data processing as referred to in Article 88 shall be regulated under a
CHAPTER XIII
RIGHTS AND OBLIGATIONS
Section One Rights
Article 90
The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may conduct some of or
all phases of mining business for both exploration and production operation activities.
Article 91
The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may utilize public facilities for
mining purpose after satisfying the provisios of laws and legislations.
Article 92
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) has the right to own mineral,
including its trace minerals or coal already produced after the exploration or production
fee is paid, except for radioactive trace mineral.
Article 93
(117)The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall not transfer his
/her Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) to another party.
(118)Transfer of ownership and /or share at the Indonesian Stock Exchange may only be
conducted after running a specific phase of exploration activity.
(119)The transfer of ownership and /or share as referred to in clause (2) may only be
conducted under the following conditions:
a. must deliver a notification to the Minister, governor, or bupati (regent) /mayor
conforming to their authority; and
b. provided that it is not contradictive to the provisions of laws and legislations.
Article 94
The right of the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be
guaranteed foro running mining business in accordance with the provisions of laws and
legislations.
Section Two
Obligations
Article 95
The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall:
a. implement good mining engineering rules;
b. manage finance conforming to Indonesian accounting system;
c. create an added value of mineral and /or coal resource;
d. conduct development and empowerment of the local community; and
e. comply with the tolerance limit of environment bearing capacity.
Article 96
In the implementation of good mining engineering rules, the holder of the Mining
Business Permit (Izin Usaha Pertambangan/IUP) and the Special Mining Business Permit
(Izin Usaha Pertambangan Khusus/IUPK) shall execute:
a. the provisions concerning mining work safety and health;
b. mining operation safety;
c. management and supervision of mining environment, including reclamation and
post mining activities;
d. the effort of conservation of mineral and coal resources;
e. management of mining tailing of a mining business activity in solid, liquid, or gas
form until it meets the environment quality standard before release to the
environment.
Article 97
The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall guarantee the
application of environment quality standard in accordance with characteristics of a
region.
Article 98
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall maintain the preservation
of function and support capability of the respective water resource in accordance with
the provisions of laws and legislations.
Article 99
(1) Every holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall seliver a
reclamation and post mining plan when proposing for a Production Operation
Mining Business Permit (IUP Operasi Produksi /IUPOP) or Production Operation
Special Mining Business Permit (IUPK Operasi Produksi).
(120)Execution of the reclamation and post mining activity shall be made conforming to
post mining land purpose.
(121)The post mining land purpose as referred to in clause (2) shall be written in a land
use agreement between the holder of Mining Business Permit (Izin Usaha
Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) and holder of right over the land.
Article 100
(122)The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall provide a
guarantee fund for reclamation and post mining guarantee fund.

(123)The Minister, governor, or bupati (regent) /mayor, conforming to their authority
may assign a third party to conduct reclamation and post mining activities utilizing
the guarantee fund as referred to in clause (1).
(124)The provisions as referred to in clause (2) shall apply if the holder of the Mining
Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit
(Izin Usaha Pertambangan Khusus/IUPK) fail to execute the reclamation and post
mining activities conforming to approved plan.
Article 101
Further terms concerning reclamation and post mining as referred to in Article 99 and
reclamation guarantee fund and post mining guarantee fund as referred to in Article 100
shall be regulated under a government regulation.
Article 102
The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall increase the added
value of the mineral and /or coal in execution of the mining, processing, and refining,
and utilization of mineral and coal.
Article 103
(125)The holder of Production Operation Mining Business Permit (IUP Operasi Produksi
/IUPOP) and Production Operation Special Mining Business Permit (IUPK Operasi
Produksi) shall execute processing and refining of mining result in Indonesia.
(126)The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in
clause (1) may process and refine the mining result from another holder of Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit
(Izin Usaha Pertambangan Khusus/IUPK).
(127)Further provisions concerning improvement of added value as referred to in Article
102 and processing and refining as referred to in clause (2) shall be regulated under a
Article 104
(128)For processing and refining, the holder of the Production Operation Mining
Business Permit (IUP Operasi Produksi /IUPOP) and Production Operation Special
Mining Business Permit (IUPK Operasi Produksi) as referred to in Article 103 may
arrange a collaboration with a business entity, cooperative, or individual who has
obtained a Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining
(129)The Mining Business Permit (Izin Usaha Pertambangan/IUP) obtained by a business
entity as referred to in clause (1) shall be a Specific Production Operation Mining
Business Permit (IUP Operasi Produksi /IUPOP) issued by the Minister, the governor,
and the bupati (regent) /mayor in accordance with their authority.
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in
clause (1) is prohibited from conducting processing and refining of mining result
from anyone who is not a holder of Mining Business Permit (Izin Usaha
Pertambangan/IUP), People's Mining Business Permit (Izin Pertambangan Rakyat/IPR),
or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).
Article 105
(131)A business entity which business activity is not in the mining business intending to
sell excavated mineral and /or coal shall first obtain a Production Operation Mining
Business Permit (IUP Operasi Produksi /IUPOP) for sales.
(132)The Mining Business Permit (Izin Usaha Pertambangan/IUP) as referred to in Article
1 paragraph (1) may only be granted once by the by the Minister, the governor, and
the bupati (regent) /mayor in accordance with their authority.
(133)On the excavated mineral or coal to sell as referred to in clause (1), a production fee
may be imposed.
(134)The Business Entity as referred to in clause (1) and clause (2) shall submit a report
of sales of excavated mineral and /or coal to the by the Minister, the governor, and
the bupati (regent) /mayor in accordance with their authority.
Article 106
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) must give priority to
employment of local worker, domestik goods and services in accordance with the
provisions of laws and legislations.
Article 107
In running the production operation activity, the business holder holding a Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin
Usaha Pertambangan Khusus/IUPK) shall involve local entrepreneurs in the region in
(135)The holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) an Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall devise a
community development and empowerment program.
(136)The devise of program and plan as referred to in clause (1) shall be with consult
with the Government, the regional government, and the people.

Article 109
Further provisions concerning procedure of execution of community development and
empowerment as referred to in Article 108 shall be regulated under a government
regulation.
Article 110
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall surrender all data
acquired from exploration and production exploitation result to the Minister, the
governor, and the bupati (regent) /mayor in accordance with their authority.
Article 111
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall submit a
written report regularly concerning the work plan and excution of mineral and coal
mining business activities to the Minister, the governor, and the bupati (regent)
/mayor in accordance with their authority.
(138)Further provisions concerning format, type, time, and procedure of submission of
report as referred to in clause (1) shall be regulated under a government regulation.
Article 112
(139)After 5 (five) years of production, a business entity holding a Mining Business
Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha
Pertambangan Khusus/IUPK) which shares are owned by foreigners shall conduct a
divestment of shares on the Government, regional government, state owned
company, regional owned company, or national private business entity.
(140)Further terms concerning divestment of shares as referred to in paragraph (1) shall

be regulated by a government regulation.
CHAPTER XIV
TEMPORARY SUSPENSION OF MINING BUSINESS PERMIT ACTIVITIES AND
SPECIAL MINING BUSINESS PERMIT
Article 113
(1) Temporary suspension of a mining business activity may be granted to the holder of
Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) in the event of:
a. force majeure
b. obstructive condition which causes halt of part of or all of mining business
activities;
c. when all bearing capacities of the environment of the area cannot support the
load of production operation activity of mineral and /or coal resource conducted
in its area.
(141)The temporary suspension of mining business activity as referred to in clause (1)
shall not reduce the validity period of the Mining Business Permit (Izin Usaha
Pertambangan/IUP) and Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK).
(142)The request for temporary suspension of mining business activity as referred to in
clause (1) item a and item b shall be delivered to the Minister, the governor, and the
bupati (regent) /mayor in accordance with their authority.
(143)The temporary suspension as referred to in clause (1) item c may be exercised by
the mine inspector or exercised based on the people's request to the Minister, the
governor, and the bupati (regent) /mayor in accordance with their authority.
(144)The Minister, the governor, and the bupati (regent) /mayor in accordance with
their authority shall issue a written decree on grant or rejection along the reason
thereof upon the request as referred to in clause (3) no later than 30 (thirty) days
from the receipt of the request.
Article 114
(145)The duration of temporary suspension due to force majeure and /or obstructive
condition as referred to in Article 113 clause (1) shall be granted for a maximum of 1
(one) year which may be extended at a maximum once for 1 (one) year.
(146)If within the time before the temporary suspension period expires, the holder of
Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) is ready to execute his /her operation
activities, the activities shall be reported to the Minister, the governor, and the bupati
(regent) /mayor in accordance with their authority.
(3) The Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority shall revoke the decree of temporary suspension after receiving the report
as referred to in clause (2).
Article 115
(147)If temporary suspension of the mining business activity is granted due to force
majeure as referred to in Article 113 clause (1) item a, the obligations of the Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit
(Izin Usaha Pertambangan Khusus/IUPK) to the Government and the local government
cease to apply.
(148)If temporary suspension of the mining business activity is granted due to
conditions obstructive to mining business activities as referred to in Article 113

clause (1) item b, the obligations of the Mining Business Permit (Izin Usaha
Khusus/IUPK) to the Government and the local government continue to apply.
(149)If temporary suspension of the mining business activity is granted due to condition
of environment bearing capacity of the area as referred to in Article 113 clause (1)
item c, the obligations of the Mining Business Permit (Izin Usaha Pertambangan/IUP)
and Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) to the
Government and the local government continue to apply.
Article 116
Further provisions concerning temporary suspension of mining business activity as
referred to in Article 113, Article 114, and Article 115 shall be regulated under a
CHAPTER XV
EXPIRY OF MINING BUSINESS PERMIT AND SPECIAL MINING BUSINESS
PERMIT
Article 117
The Mining Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) shall expire due to:
a. returned;
b. revoked; or
c. expiry of its validity period.
Article 118
(1) The holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may return his /her
Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) by written statement to the Minister,
the governor, and the bupati (regent) /mayor in accordance with their authority
along a clear reason thereof.
(2) The returning of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to
in clause (1) shall be stated valid after approval by the Minister, the governor, and
the bupati (regent) /mayor in accordance with their authority and after the
obligations of the holder are complied with.
Article 119
The Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK) can be revoked by the Minister, the
governor, and the bupati (regent) /mayor in accordance with their authority, in the
event that:
a. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) fails to comply with
the obligations stipulated in the Mining Business Permit (Izin Usaha
Khusus/IUPK) and the provisions of laws and legislations.
b. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) conducts a criminal
act as referred to in this Law; or
c. the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) is stated to be bankrupt.

Article 120
In the event the period defined in the Mining Business Permit (Izin Usaha
Khusus/IUPK) has expired and an advancement or extension request is not submitted for
the activity or a request is submitted but fails to meet requirements, thet Mining
Business Permit (Izin Usaha Pertambangan/IUP) and Special Mining Business Permit (Izin
Usaha Pertambangan Khusus/IUPK) shall cease to be valid.
Article 121
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which Mining
Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining Business Permit
(Izin Usaha Pertambangan Khusus/IUPK) expires due to the reason as referred to in
Article 117, Article 118, Article 119, and Article 129 shall fulfill and settle obligations
(151)The obligations of the holder of the Mining Business Permit (Izin Usaha
Khusus/IUPK) as referred to in clause (1) shall be considered to have been complied
with and approved by the Minister, the governor, and the bupati (regent) /mayor in
accordance with their authority.
Article 122
(152)The Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which has been returned,
revoked, or validity period expires as referred to in Article 121, shall be returned to
the Minister, the governor, and the bupati (regent) /mayor in accordance with their
authority.
(153)The Mining Business Permit Area (Wilayah Izin Usaha Pertambangan /WIUP) or
Special Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
Khusus/WIUPK) which Mining Business Permit (Izin Usaha Pertambangan/IUP) or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) has expired
as referred to in clause (1) shall be offered to a business entity, cooperative, or
individual through a mechanism in accordance with the provisions of this Law.
Article 123
In the event the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) expires, the holder of the
Permit (Izin Usaha Pertambangan Khusus/IUPK) shall surrender all data acquired from
exploration and production operation result to the Minister, the governor, and the
bupati (regent) /mayor in accordance with their authority.
CHAPTER XVI
MINING SERVICE BUSINESS
Article 124
(154)The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall use local and
/or national mining service companies.
(155)In case the mining service companies as referred to in clause (1) is not available, the
holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) may use other
mining service companies which establishment are as Indonesian legal entity.

(156)The type of mining service business covers:
a. consulting, planning, execution, and testing of equipment in:
(157)general survey;
(158)exploration;
(159)feasibility study;
4) mining construction;
(160)transportation;
(161)mining environment;
(162) post mining and reclamation; and /or
(163) work safety and health;
b. consulting, planning, and testing of equipment in:
(164)mining; or
(165)processing and refining.
Article 125
(166)In the event the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) uses mining
service, the responsibility of mining business activity shall remain on the holder of
the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special Mining
(167)The executive of mining service business can be in form of a business entity,
cooperative, or individual conforming to classification and qualification set forth by
the Minister.
(168)The actor of mining service company shall give priority to local contractors and
workers.
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) is prohibited from
involving affiliates in the mining service business sector in the mining business area
it operates, except under consent of the Minister.
(170)The grant of consent of the Minister as referred to in paragraph (1) shall be made in
the event:
a. there isn't any similar mining service companywithin the area; or
b. there isn't any mining service company which is willing
/capable.
Article 127
Further provisions concerning administering of mining business service as referred to in
Article 124, Article 125, and Article 126 shall be regulated under a regulation of a
minister.
CHAPTER XVII
STATE AND REGIONAL INCOME Article 128
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall make payment
for state income and regional income.
(172)The state income as referred to in clause (1) comprises of tax income and non-tax
state income.
(173)The tax income as referred to in clause (2) comprises of:
a. taxes which fall in the authority of the Government pursuant to the provisions of
legislations in taxation; and
b. import duty and excise.

(4) The non tax state income as referred to in clause (2) comprises of:
a. fixed fee;
b. exploration fee;
c. production fee; and
d. compensation for information data.
(5) The regional income as referred to in clause (1) comprises of:
a. regional tax;
b. regional fee; and
c. other legal income pursuant the provisions of laws and legislations.
Article 129
(174)The holder of Production Operation Special Mining Business Permit (IUPK Operasi
Produksi) for metal and coal mineral mining shall pay an amount of 4% (four percent
to the Government and 6% (six percent) to the regional government out of net profit
since production.
(175)The portion of the regional government as referred to in clause (1) shall be
regulated as follows:
a. the provincial government gets a portion of 1% (one percent);
b. the kabupaten (regency)/municipality government where production takes place
gets a portion of 2.5% (two point five percent);
c. the other kabupaten (regency)/municipality government in the same province
gets a portion of 2.5% (two point five percent);
Article 130
(176)To the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK), production

fee is not imposed as referred to in Article 128 clause (4) item c and regional tax and
fee as referred to in Article 128 clause (5) on soil/rock also excavated during mining.
(177)To the holder of the Mining Business Permit (Izin Usaha Pertambangan/IUP) or the
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) production
fee is imposed as referred to in Article 128 clause (4) item c on utilization of soil/rock
also excavated during mining.
Article 131
The amount of tax and non tax state income collected from the holders of Mining
Business Permit (Izin Usaha Pertambangan/IUP) , People's Mining Business Permit (Izin
Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin Usaha Pertambangan
Khusus/IUPK) shall be stipulated in accordance with the provisions of laws and
legislations
Article 132
(178)The amount of production fee tariff shall be stipulated based on exploitation level,
production, and mine commodity prices.
(179)The amount of production fee tariff as referred to in clause (1) shall be stipulated in
Article 133
(180)The non tax state income as referred to in Article 128 clause (4) constitutes state and
regional income which distribution shall be stipulated in accordance with the
(181)The non tax state income which constitutes regional portion shall be paid directly to
the regional treasury once in 3 (three) months after payment to the state treasury.
CHAPTER XVIII
LAND USE FOR MINING BUSINESS ACTIVITIES
Article 134
(182)The rights on Mining Business Permit Area (Wilayah Izin Usaha Pertambangan
/WIUP), People's Mining Area (Wilayah Pertambangan Rakyat /WPR), and Special
Mining Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK) do
not cover the right over land on the earth surface.
(183)A mining business activity may not be conducted on places where it is prohibited
to conduct mining business activity in accordance with the provisions of laws and
legislations.
(184)The mining business activity as referred to in clause (2) may be conducted after
obtaining an approval from the Government institutions in accordance with the
Article 135
The holder of Exploration Mining Business Permit (IUP Eksplorasi) and Exploration
Special Mining Business Permit (IUPK Eksplorasi) may only conduct his /her activities
after obtaining an approval from the holder of right over land.
Article 136
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) before execution of
production operation, shall settle the right over land with the holder of right in
(186)The settlement of right over land as referred to in clause (1) may be made in phases
conforming to the needs of land by the holder of Mining Business Permit (Izin Usaha

Khusus/IUPK).
Article 137
To the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) as referred to in Article
135 and Article 136 who has conducted settlement on plos of land may be given right
over land in accordance with the provisions of laws and legislations.
Article 138
The right on Mining Business Permit (Izin Usaha Pertambangan/IUP) , People's Mining
Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin
Usaha Pertambangan Khusus/IUPK) does not constitute the right over land.
CHAPTER XIX
ASSISTANCE, SUPERVISION, AND , PROTECTION OF THE PEOPLE
Section One
Assistance and Supervision
Article 139
(187)The Minister conducts assistance on administering of mining business
administering run by the provincial government and the government of kabupaten
(regency)/municipality conforming to their authority.
(188)The assistance as referred to in clause (1) includes:
a. grant of directive and standard of execution of mining business management;
b. grant of guidance, supervision, and consult;
c. education and training; and
d. planning, research, development, monitoring, and evaluation of execution of
administering of mining business in mineral and coal sector.

(189)The minister may delegate to the governor to conduct assistance on administering
of authority in management in the mining business sector as referred to in clause (1)
conducted by the government of the kabupaten (regency)/municipality.
their authority shall be responsible for assistance on execution of mining business
activities run by the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP)
, People's Mining Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining
Article 140
(191)The Minister conducts supervision on administering of mining business
administering run by the provincial government and the government of kabupaten
(regency)/municipality conforming to their authority.
(192)The minister may delegate to the governor to conduct supervision on administering
of authority in management in the mining business sector as referred to in clause (1)
conducted by the government of the kabupaten (regency)/municipality.
(193)The Minister, the governor, or the bupati (regent) /mayor in accordance with their
authority shall conduct assistance on execution of mining business activities run by
the holder of Mining Business Permit (Izin Usaha Pertambangan/IUP) , People's
Mining Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining Business
Permit (Izin Usaha Pertambangan Khusus/IUPK).
Article 141
(1) The supervision as referred to in Article 140 among else is in form of:
a. mining engineering;
b. marketing;
c. finance;
d. processing of mineral and coal data;
e. conservation of mineral and coal resources;
f. mining work safety and health;
g. mining operation safety;
h. management of the environment, reclamation, and post mining;
i. utilization of domestic goods, service, technology, engineering and construction
capabilities;
j. development of mining engineering workers;
k. development and empowerment of the local community;
l.. mastery, development, and application of mining technology;
m. other activities in mining business activities related to public interest;
n. management of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK); and
o. amount, type, and quality of the mining business result.
(2) The supervision as referred to in clause (1) item a, item e, item f, item g, item h, and
item l shall be made by the mine inspector in accordance with the provisions of laws
and legislations.
(3) In the event the provincial or government of the kabupaten (regency)/municipality
has not had a mine inspector, the Minister shall assign an appointed mine inspector
to execute assistance and supervision as referred to in clause (2).
Article 142
(194)The Governor and bupati (regent) /mayor shall report the execution of mining
business in their respective are at least once in 6 (six) months to the Minister.
(195)The Government may issue a warning to the regional government if in exercise of
its authority; it fails to comply with the provisions of this Law or the provisions of
other laws.
Article 143
(196)The bupati (regent)/mayor shall conduct assistance and supervision on thhe
people's mining business.
(197)Further provisions concerning assistance and supervision of people's mining shall
be regulated under a kabupaten (regency)/municipality local regulation.
Article 144
Further provisions the standard and procedure of assistance and supervision as referred
to in Article 139, Article 140, Article 141, Article 142, and Article 143 shall be regulated
under a government regulation.
Section Two
Protection of the People
Article 145
(1) The people who are hit by direct negative impact of the mining business activity
shall be entitled to:
a. receive appropriate compensation due to a mistake in running mining activities
b. propose a claim to the court on loss incurred due to mining activity which
violates a provision.
(2) The provisions concerning protection for the people as referred to in clause (1) shall
be stipulated in accordance with the provisions of laws and legislations.

CHAPTER XX
RESEARCH AND DEVELOPMENT AND EDUCATION AND TRAINING
Section One
Research and Development
Article 146
The Government and the regional government shall encourage, execute, and /or
facilitate the execution of research and development of mineral and coal.
Section Two
Education and Training
Article 147
The Government and the regional government shall encourage, execute, and /or
facilitate the execution of education and training in mineral and coal exploitation.
Article 148
The administering of education and training may be made by the Government, the local
government, private institutions, and the people.
CHAPTER XXI
INVESTIGATION
Article 149
(198)As addition to the police officers of the Republic of Indonesia, a civil servant officer
which work and responsibility coverage in mining shall be given a special authority
as an investigator in accordance with the provisions of laws and legislations.
(199)The civil servant investigator as referred to in clause (1) shall have an authority to:
a. conduct examination on the correctness of report or information pertaining to
criminal act in the mining business activity;

b. conduct examination on person or entity suspected to conduct criminal act in the
mining business activity;
c. summon and /or make a person appear in force to be heard and investigated as a
witness or suspect in a criminal act of mining business activity;
d. to search a place and /or facility suspected to be used for conducting a criminal
act in the mining business activity;
e. conduct examination of mining business activity facility and infrastructure and
stop the use of equipment suspected to be used to conduct the crime;
f. seal and /or confiscate the mining business activity equipment used to conduct
the criminal act as an evidence;
g. to make appear of and /or request help from experts required in relation to the
examination of criminal act case in the mining business activity; and /or
h. terminate investigation of the case of criminal act in mining business activity.
Article 150
(200)The civil servant investigator as referred to in Article 149 may apprehend the actor
of the criminal act in the mining business activity.
(201)The civil servant investigator as referred to in clause (1) makes a report starting
from investigation and delivers the result of investigation to the police officers of the
Republic of Indonesia in accordance with the provisions of laws and legislations.
(202)The civil servant investigator as referred to in clause (1) shall terminate his
investigation in the event there is no sufficient evidence and /or the event does not
constitute a criminal act.
(203)Exercise of the authority as referred to in clause (2) and clause (3) shall be made in

CHAPTER XXII
ADMINISTRATIVE SANCTION
Article 151
their authority shall be entitled to impose administrative sanction to the holder of the
Mining Business Permit (Izin Usaha Pertambangan/IUP) , People's Mining Business
Permit (Izin Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin Usaha
Pertambangan Khusus/IUPK) on violation of provisions as referred to in Article 30
clause (3), Article 40 clause (5), Article 41, Article 43, Article 70, Article 71 clause (1),
Article 74 clause (4), Article 74 clause (6), Article 81 clause (1), Article 93 clause (3),
Article 95, Article 96, Article 97, Article 98, Article 99, Article 100, Article 102, Article
103, Article 105 clause (3), Article 105 clause (4), Article 107, Article 108 clause (1),
Article 110, Article 111 clause (1), Article 112 clause (1), Article 114 clause (2), Article
115 clause (2), Article 125 clause (3), Article 126 clause (1), Article 128 clause (1),
Article 129 clause (1), or Article 130 clause (2).
(205)The administrative sanction as referred to in clause (1) shall be in form of:
a. a written warning;
b. temporary suspension of part of or all parts of exploration or production
operation activities; and /or
c. revocation of Mining Business Permit (Izin Usaha Pertambangan/IUP), People's
Mining Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining
Article 152
In the event the local government fails to execute the provisions as referred to in Article
151 and the result of evaluation made by the Minister as referred to in Article 6 clause (1)
item j, the Minister may temporarily suspend and /or revoke the Mining Business
Permit (Izin Usaha Pertambangan/IUP) or People's Mining Business Permit (Izin
Pertambangan Rakyat/IPR) in accordance with the provisions of laws and legislations.
Article 153
In the event the regional government objects to the temporary suspension and /or
revocation of the Mining Business Permit (Izin Usaha Pertambangan/IUP) and People's
Mining Business Permit (Izin Pertambangan Rakyat/IPR) by the Minister as referred to in
Article 152, the regional government may propose an objection in accordance with the
Article 154
Any dispute incurring in the exercise of the Mining Business Permit (Izin Usaha
Pertambangan/IUP) , People's Mining Business Permit (Izin Pertambangan Rakyat/IPR), or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) shall be settled
through the court and domestic arbitration in accordance with the provisions of laws
and legislations.
All legal consequences incurring due to temporary suspension and /or revocation of
Mining Business Permit (Izin Usaha Pertambangan/IUP) , People's Mining Business Permit
(Izin Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin Usaha
Pertambangan Khusus/IUPK) as referred to in Article 151 clause (2) item b and item c shall
be settled in accordance with the provisions of laws and legislations.
Article 156
Further provisions concerning procedure exercise of administrative sanction as referred
to in Article 151 and Article 152 shall be regulated under a government regulation.
Article 157
On the regional government which fails to meet the provisions as referred to in Article
clause (4), administrative sanction shall be imposed in form of temporary removal of
authority on the right of management of mineral and coal mining business.
CHAPTER XXIII
CRIMINAL PROVISIONS
Article 158
Every person who conducts a mining business without a Mining Business Permit (Izin
Usaha Pertambangan/IUP) , People's Mining Business Permit (Izin Pertambangan
Rakyat/IPR), or Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK)
as referred to in Article 37, Article 40 clause (3), Article 48, Article 67 clause (1), Article
74 clause (1) or clause (5) shall be punished with a jail term for a maximum time of 10
(ten) years and fine for a maximum amount of Rp 10.000.000.000,00 (ten billion rupiahs).
Article 159
The holder of a Mining Business Permit (Izin Usaha Pertambangan/IUP) , People's Mining
Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining Business Permit (Izin
Usaha Pertambangan Khusus/IUPK) who deliberately submits a report as referred to in
Article 43 clause (1), Article 70 item e, Article 81 clause (1), Article 105 clause (4), Article
110, or Article 111 clause (1) incorrectly or gives false information shall be punished with
a jail term for a maximum time of 10 (ten) years and fine for a maximum amount of
Rp. 10.000.000.000,00 (ten billion rupiahs).
Article 160
(1) Every person who conducts exploration without obtaining a Mining Business Permit
(Izin Usaha Pertambangan/IUP) or Special Mining Business Permit (Izin Usaha

Pertambangan Khusus/IUPK) as referred to in Article 37 or Article 74 clause (1) shall be
punished with a jail term for a maximum time of 1 (one) year or fine for a maximum
amount of Rp. 200.000.000,00 (two hundred million rupiahs).
(2) Every person who possesses a Exploration Mining Business Permit (IUP Eksplorasi)
but runs production operation activity shall be punished with a jail term for a
maximum of 5 (five) year and fine for a maximum of Rp. 10.000.000.000,00 (ten
billion rupiahs).
Article 161
Every person who holds a Production Operation Mining Business Permit (IUP Operasi
Produksi /IUPOP) or Production Operation Special Mining Business Permit (IUPK
Operasi Produksi) who collects, utilizes, and conducts processing and refining,
transportation, sales of mineral and coal sourced not from a holder of a Mining Business
Permit (Izin Usaha Pertambangan/IUP) , Special Mining Business Permit (Izin Usaha
Pertambangan Khusus/IUPK) or permit as referred to in Article 37, Article 40 clause (3),
Article 43 clause (2), Article 48, Article 67 clause (1), Article 74 clause (1), Article 81
clause (2), Article 103 clause (2), Article 104 clause (3), atau Article 105 clause (1) shall be
punished by a jail term for a maximum time of 10 (ten) years and fine for a maximum of
Rp. 10.000.000.000,00 (ten billion rupiahs).
Article 162
Every person who obstructs or interrupts the mining business activity of a holder of a
Permit (Izin Usaha Pertambangan Khusus/IUPK) who has met the requirements as referred
to in Article 136 clause (2) shall be punished by a jail term for a maximum of 1 (one) year
and fine for a maximum of Rp. 100.000.000,00 (one hundred million rupiahs).
Article 163
(206)In the event the criminal act as referred to in this chapter is conducted by a legal
entity, as addition to the jail term and fine on its management, a punishment can also
be imposed on the legal entity in form of fine punishment with aggravation plus 1/3
(one-third) of maximum fine punishment imposed.
(207)As addition of fine punishment as referred to in clause (1), additional punishment
can also be imposed on the legal entity in form of:
a. revocation of business permit; and /or
b. revocation of legal entity status.
Article 164
Other than the provisions as referred to in Article 158, Article 159, Article 160, Article
161, and Article 162, on the actor of the criminal act, additional punishment may be
imposed in form of:
a. confiscation of goods used conducting the criminal act;
b. confiscation of profit gained from the criminal act; and /or
c. obligation to pay costs incurred due to the criminal act.
Article 165
Every person who issues the Mining Business Permit (Izin Usaha Pertambangan/IUP) ,
People's Mining Business Permit (Izin Pertambangan Rakyat/IPR), or Special Mining
Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which contradicts this Law and
misuses his /her authority shall be punished with a jail term for a maximum of 2 (two)
years and fine for a maximum of Rp 200.000.000,00 (two hundred million rupiahs).
CHAPTER XXIV
OTHER PROVISIONS
Article 166
Every problem incurring on the exercise of Mining Business Permit (Izin Usaha
Pertambangan/IUP) , People's Mining Business Permit (Izin Pertambangan Rakyat/IPR), or
Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) related to
environment impact shall be settled in accordance with the provisions of laws and
legislations.
Article 167
The Mining Area (Wilayah Pertambangan /WP) shall be managed by the Minister in a
nationally integrated Mining Area (Wilayah Pertambangan /WP) information system to
conduct homogenization of coordinate system and base map in issuance of Mining
Business Area (Wilayah Usaha Pertambangan /WUP), Mining Business Permit Area
(Wilayah Izin Usaha Pertambangan /WIUP), People's Mining Area (Wilayah Pertambangan
Rakyat /WPR), State Reserve Area (Wilayah Pencadangan Negara /WPN), Special Mining
Business Area (Wilayah Usaha Pertambangan Khusus /WUPK), and Special Mining
Business Permit Area (Wilayah Izin Usaha Pertambangan Khusus/WIUPK).
Article 168
To increase investment in mining, the Government may provide facilities and taxation
facilities in accordance with the provisions of laws and legislations except stated
otherwise in the Mining Business Permit (Izin Usaha Pertambangan/IUP) or Special
Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK).
CHAPTER XXV
TRANSITIONAL PROVISIONS
Article 169
At the time this Law comes into effect:
a. Contract of work and concession work agreement for coal mining which have existed
before this Law comes into effect shall remain effective until expiry of the contract
/agreement.
b. The provisions in the articles in the contract of work and concession agreement for
coal mining as referred to in clause a shall be adjusted no later than 1 (one) year since
this Law is promulgated except for matters pertaining to state income.
c. Exception to the state income as referred to in item b shall be the effort to increase
state income.
Article 170
The holder of a contract of work as referred to in Article 169 who has started production
shall conduct refining as referred to in Article 103 clause (1) no later than 5 (five) years
since this Law is promulgated.
Article 171
(208)The holder of contract of work and concession work contract for coal mining as
referred to in Article 169 who has conducted the activity phase of exploration,
feasibility study, construction, or production operation no later than 1 (one) year
since this Law comes into effect must submit an activity plan on all contract
/agreement areas until the period of expiry of contract /termination to obtain
government approval.
(209)In the event the provision as referred to in clause (1) cannot be satisfied, the size of
mining area already granted to the holder of the contract of work and work
agreement of coal mining concession shall be adjusted to this Law.

Article 172
The request for contract of work and work agreement on coal mining business already
proposed to the Minister at least 1 (one) year before this Law comes into effect and has
obtained a principle approval certificate or preliminary survey permit certificate shall
keep being respected and its permit can be processed without going through a bid in
accordance with the provisions of this Law.
CHAPTER XXVI
CLOSING PROVISIONS
Article 173
(210)By the time this Law comes into effect, the Law Number 11 of Year 1967 concerning
Main Terms of Mining (State Gazette of the Republic of Indonesia of Year 1967
Number 22, Supplement to State Gazette Number 2831) shall be revoked and stated
to be void.
(211)At the time this Law comes into effect, all legislations which constitute
implementation regulations of Law Number 11 of Year 1967 concerning Main
Provisions in Mining (State Gazette of the Republic of Indonesia of Year 1967
Number 22, Supplement to State Gazette Number 2831) shall be stated to remain in
effect provided that they are not contradictory to the provisions of this Law.
Article 174
The implementation regulation of this Law must have been stipulated within 1 (one)
year since promulgation of this Law.
Article 175
This Law comes into effect from the date of promulgation.
For public cognizance, orders promulgation of this Law by its placement in the State
Gazette of the Republic of Indonesia.
Ratified in Jakarta on the date 12 January 2009
of
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
DR. H. SUSILO BAMBANG YUDHOYONO
Promulgated in Jakarta on the date 12 January 2009
of
THE MINISTER OR JUSTICE AND HUMAN RIGHTS OF THE
REPUBLIC OF INDONESIA,
ANDI MATTALATTA

Law of The Republic of Indonesia Number 4 of Year

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Law of The Republic of Indonesia Number 4 of Year

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LAW OF THE REPUBLIC OF INDONESIA NUMBER 4 OF YEAR 2009

MINERAL AND COAL MINING

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

WITH THE BLESSING OF GOD THE ALMIGHTY

Considering: a. that mineral and coal contained in the jurisdiction of mining of

Indonesia constitutes non-renewable natural resources as

bestowed by God the Almighty which plays an important role in

satisfying life necessities of many people, therefore management

thereof must be controlled by the State to give real added value

for national economy in the efforts to reach a just welfare and

prosperity of the people.

business activities other than geothermal, petroleum and natural

gas and ground water play a significant role in providing real

added value to national economy growth and regional

development in a sustainable manner;

c. that by considering national and international progress, Law

Number 11 of Year 1967 concerning Main Provisions in Mining is

not suitable any longer thus an amendment to laws in mineral

and coal mining is required which is able to manage and exploit

mineral and coal potential independently, reliably, transparently,

competitively, efficiently, and environmentally aware, to

guarantee a sustainable national development.

and item c, a Law concerning Mineral and Coal Mining needs to

Constitution of the Republic of Indonesia of Year 1945;

With Joint Approval of

THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

To enact: LAW CONCERNING MINERAL AND COAL MINING

and exploitation of mineral or coal covering general survey, exploration, feasibility

and chemical properties and arranged crystal structure or combination thereof

forming rock, in loose or combined form.

bitumen, turf, and asphalt rock.

exploitation of mineral or coal covering general survey, exploration, feasibility

Pertambangan/IUP) shall be the permit to run mining business.

business permit granted after completion of Exploration Mining Business Permit

(IUP Eksplorasi) to execute the phase of production operation activities. *

(10)People's Mining Permit, hereinafter People's Mining Business Permit (Izin

Pertambangan Rakyat/IPR), shall be the permit to conduct mining business within

people's mining area under limited area and investment size.

special mining business permit area.

(12)Exploration Special Mining Business Permit (IUPK Eksplorasi) shall be a business

(13)Production Operation Special Mining Business Permit (IUPK Operasi Produksi)

shall be a business permit granted after completion of execution of Exploration

Special Mining Business Permit (IUPK Eksplorasi) to to execute the phase of

production operation activities in the special mining business permit area.

condition and indication of presence of mineralization.

precise information about location, shape, dimension, distribution, quality and

measured of materials, and information concerning social condition and the

mining business, including analysis about environment impact and post-mining

(17)Production Operation shall be the phase of mining business activities covering

construction, mining, processing, refining, including transportation and sales, and

environment impact control facilities conforming to the result of feasibility study.

(18)Construction shall be mining business activities to execute development of all

production operation facilities, including control of environment impact.

and their trace minerals.

of the Republic of Indonesia.

(25)Environment Impact Statement (AMDAL), hereinafter AMDAL, shall be a study

environment required for decision making process about undertaking of a business

and /or activity.

(26)Reclamation shall be an activity conducted during the phase of mining business to

function again according to their purpose.

recover natural environment and social functions according to local conditions at

all mining areas.