Revision To Give Mining Business And Legal Certainty: Minister

Jakarta (Antara Bali) - The Energy and Mineral Resources (ESDM) Ministry said the Government Regulation (PP) No.1 of 2017 on revision of the government regulation No. 23 of 2010 on mineral and coal mining is to give an optimum benefit for the country.

ESDM Minister Ignasius Jonan said the revision gave legal   and business certainty for holders of IUP (mining business license), special mining business license (IUPK), production operation , working contract  and coal mining agreement.

Jonan cited important points in the PP No. 1 of 2017.

First - that  proposal for contract extension may not be submitted earlier than 5 years before the expiration of the existing contract.

Second, share divestment until 51 percent of the shares controlled by Indonesian partners is to be made by phases.

Third - regulation on fixed selling prices of  minerals and coal to be set by the government.

Fourth - abolition of regulation  that holders of contract of work (KK), which have refined their products may sell their processed products in certain quantity and time.

Fifth - on the procedure of increasing added value  and sales of metal mineral is to be regulated further  under ministerial regulation.

The share divestment could be made to state companies (BUMN)  and companies owned by regional administrations (BUMD), Jonan said here on Thursday night.

The main purpose of the PP is to increase added value of minerals through processing and refining as said in the Law No. 4/2009 on mineral and coal mining.

Jonan said the government would continue to encourage development of smelters  and metal mineral refining facilities in the country. (WDY)