The Ministry of Energy and Mineral Resources has issued new regulations related to licensing of mineral and coal business activities. It is Ministerial Regulation No. 7 of 2020 on Procedures for Area Granting, Licensing, and Reporting on Mineral and Coal Mining Business Activities (“ MR 7/2020 ”). The regulation principally sets out provisions to prepare and establish mining areas – along with their Mining Area Information Systems; to grant the mining area; to grant mineral and coal business licenses along with the obligations and prohibitions; and to submit the annual work plan & budget ( Rencana Kerja dan Anggaran Biaya/ ‘RKAB’ ) and reports.
There are several main issues that are changed under MR 7/2020. Some of them are further provisions on how to convert local companies into foreign investment companies (‘ Penanaman Modal Asing ’). MR 7/2020 also widens the scope of authority of Ministers or Governors to reject the application to change shareholder composition. There are also several changes due to licensing and approval, such as change of platform and removal of some business licenses. It also introduces a new information system in order to submit the RKAB and the report.
The complete article, including the comparison table between the new regulation (MR 7/2020) and MR 11/2018 can be downloaded here ←
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