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Some Responsibilities Imposed on the Holders of

IUP / IUPK
Holder of either a Mining Permit (Izin Usaha Pertambangan
/ IUP) or a Special Mining Permit (Izin Usaha
Pertambangan Khusus / IUPK) has the responsibilities in
connection with its mining operation, the environmental
conditions, as well as the development of the local
community.
Some general responsibilities set under Article 95 of the
Law No. 4 Year 2009 on Mineral and Coal Mining are:
a) To properly apply the rules of good mining
techniques;
b) To manage finances in accordance with the
Indonesian accounting system;
c) To increase the added value of the mineral resources
and/or coal;
d) To execute development and empowerment of the
local community; and
e) To comply with the tolerance level of the
environment.
In applying the rules of good mining techniques, the
holder of IUP or IUPK is obliged to implement:
1.The stipulation of mining occupational health and
safety;
2.The safety to mining operations;
3.The management and supervision of the mining
environments, including the reclamation and postmining activities;
4.The mineral and coal conservation efforts;
5.The management of residual of a mining business
activity in the form of solids, liquids or gases until
they meet the environmental quality standards
before being released into the environment;

In terms of reclamation and post-mining, basically, the


implementation of reclamation and post-mining activities
are to be carried out pursuant to the purposes of the land
use post- mining. The purpose of land use post-mining
should be stated in the relevant agreement of the land
usage between the holder of the IUP / IUPK and the holder
of the land title.
The holder of IUP / IUPK is required to provide a
reclamation and post-mining fund guarantee. The Minister,
the Governor, or the Head of the Regency / the Mayor in
accordance to their authority may assign a third party to
do the reclamation and post-mining with the guarantee
fund that has been provided by the IUP / IUPK holder.
Every holder of IUP / IUPK shall submit a reclamation plan
and a post-mining plan at the time of applying for IUP for
Production Operation or IUPK for Production Operation, as
stipulated under the Law No. 4 Year 2009.
The
responsibility for the reclamation and post-mining is
further stipulated under the Government Regulation No.
78 Year 2010 on Reclamation and Post-mining.
The holder of IUP for Exploration or IUPK for Exploration is
also required by the Government Regulation No. 78 Year
2010 to carry out reclamation. The reclamation is
conducted on disordered land affected by the exploration.
For the holder of IUP for Production Operation or IUPK for
Production Operation, the regulation requires the holder to
carry out the reclamation and post-mining on the land
affected by the mining activities either open mining or
underground mining.
Other than the obligations of reclamation and post-mining,
Article 103 of the Law No. 4 Year 2009 also states that the
holder of IUP / IUPK is obliged to process and refine the
mining products within the country (Indonesia). In this
case, the IUP/IUPK holder may cooperate with companies,

cooperatives, or individuals who have acquired the IUP /


IUPK to Process and Refine as issued by the Minister, the
Governor, or the Head of Regency/Mayor in accordance to
their authority.
In addition, as stated in Article 106 of Law No. 4 Year
2009, the holder of IUP / IUPK is obliged to prioritize the
use of local manpower, goods, and services in the country.
Further, in conducting the production operation activity,
the holder of IUP / IUPK must involve local entrepreneurs
in the area and arrange program to develop and empower
the community.