Wednesday, May 27, 2009

Indonesia Formulating Mining Permit Procedure

The Indonesian government is currently formulating a procedure for companies willing to obtain mining permits (IUP in its Indonesian abbreviation). The procedure would then be included in a bylaw on mineral and coal business, the draft of which is presently in a finalization at the ESDM ministry.

M.S. Marpaung, the Director of Technique and Environment of the ESDM ministry, was quoted as saying that the government would try to conclude proceedings to obtain the permit in a matter of two weeks' time only, although this may not be a final case. The explanation was given in response to a question from participants in a seminar on the future of mining business post the new mining law No. 4/2009 in Balikpapan, East Kalimantan, on 14 May 2009.

The government, according to Mr. Marpaung, had proposed a merger of two or more mining authorizations (KP in its Indonesian abbreviation) of less than 5,000 hectares, as the new law laid down that mining permits would be granted to mining authorizations with the minimum size of 5,000 hectares only.

The government would also try to ensure that conversion from KP into IUP be finalized as quick as possible. He admitted that previously the process could take years to conclude, depending on the KP owners' negotiation with the local governments. He stated that the KPs would still be recognized and that the central government would coordinate proceedings with its local counterparts.

Source: Majalahtambang

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