New Regulations relating to the operation of mineral and coal mining businesses came into force on May 2024*.

The New Regulations aim to clarify the regulatory regime for special/mining business licence holders (Licence Holders). The New Regulations introduce broader rights than the previous regulations**, including the ability for subsidiaries of state-owned enterprises to apply for rolling 10 year licence extensions. Under the previous regulations, only state-owned enterprises were able to apply for this extension.

The New Regulations introduce the requirement that any Licence Holders, that have a stake in other entities that process, refinine, develop and/or use of the resources that they are mining, must have a minimum direct or indirect shareholding of at least 30% in the other entity before they are eligible for a 10 year licence extension.

The New Regulations introduce a 5 year window giving businesses con- trolled by religious organisations priority bidding for special mining business permits. The previous regulations only provided priority bidding to state-owned and regionally-owned businesses.

Special mining business licences issued before the New Regulations came into effect, will remain valid until their expiry date.

*Government Regulation of the Republic of Indonesia Number 25 of 2024 concerning Amendments to Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

**Government Regulation of the Republic of Indonesia Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.