The Indonesian government has issued Presidential Regulation 55 (PR 55)* that regulates the delegation of authority to grant certain business licenses in the mineral and coal mining sector as an implementing regulation of Government Regulation (GR 96).** Based on PR 55, the central government has delegated the issuance of certain mineral and coal mining Standard Certificates (Sertifikat Standar) and Licences (izin) to the provincial government.
This new regulation stipulates that the provincial government will issue the Standard Certificates for consulting and planning activities for mining services businesses in the fields of general investigation, exploration, feasibility studies, mining construction, transportation, environment, reclamation and post-mining activities, mining safety, and/or mining.
Meanwhile, the Licenses that can be issued by the provincial government based on PR 55 are limited to the following:
- mining business licenses in the context of domestic investment for the commodities of non-metal mineral, certain types of non-metal mineral, or rock, that are located in 1 provincial area or up to 12 nautical miles from the coastline;
- rock mining licenses;
- community mining licenses;
- licenses for transportation and sale of non-metal mineral, certain types of non-metal mineral, or rock commodities;
- mining services business license for 1 provincial area; and
- mining business license for the sale of non-metal mineral, certain types of non-metal mineral, or rock commodities.
The delegation of certain supervisory and guidance authorities is also included in PR 55. This new regulation does not allow any further delegation from provincial government to local government.
PR 55 does not affect the issuance of Business Identification Numbers (Nomor Induk Berusaha/NIB) for mineral and coal mining activities, which are still issued by the central government.
*Presidential Regulation Number 55 of 2022 concerning the Delegation of the Granting of Business Licensing in the Field of Mineral and Coal Mining.
**Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal-Mining Business Activities.
