Indonesia: Mining regulations
SUPPLEMENT - THE 2008 GUIDE TO ENERGY AND PROJECT FINANCE - October 01, 2008
The basis for the regulation of the Indonesian mining sector is ultimately derived from Constitution 1945 of the Republic of Indonesia, which stipulates that Indonesia's natural resources are to be controlled by the state and must be used for the maximum benefit of the Indonesian people. Law 11 of 1967 on Mining and its implementing regulations adopt this fundamental principle. Control has been interpreted as being equivalent to ownership. Therefore, there is no title to particular mineral deposits granted by the state to private companies or individuals. Instead, the state only grants rights to exploit and sell the mineral deposits.
Domestic investment in mining is further governed by Government Regulation 32 of 1969 on the Implementation of Law 11 of 1967, as further consecutively amended by Government Regulation 79 of 1992 and Government Regulation 75 of 2001 (GR 75/01). Domestic investment in the mining industry is conducted through a Kuasa...
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