The Government has recently implemented new legislation that impacts on those carrying out mining services businesses (New Regulations).* The New Regulations specify that those with both a normal mining business licence (Izin Usaha Pertambangan) or a special mining business licence (Izin Usaha Pertambangan Khusus) must use local or national mining service companies to provide various services such as consultation, surveying, feasibility studies, construction, mining, etc.

If there are no local or national mining companies that are able to provide the necessary services, then the New Regulations allow those with mining licences to employ foreign investment mining service companies (perusahaan jasa pertambangan penanaman modal asing), so long as certain conditions have been fulfilled including that the companies must have the relevant licences to operate in Indonesia.

* Government Regulation No. 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities. This new regulation revokes and replaces Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Business Activities.