Article

Every business must fulfill the provisions imposed by the Government, one of which is having a business license, including mining activities. All mining activities ranging from general investigation, exploration, feasibility studies, construction, mining, processing, and refining, transportation and sales, and post-mining have been regulated by the Ministry of Energy and Mineral Resources. The following are the types of mining licenses that apply in Indonesia:

Exploration Mining Business License (IUP)

Licenses to carry out general investigation activities, exploration processes, and business feasibility studies. This license is valid for up to 8 years for metallic minerals; 7 years for Coal, certain types of non-metallic minerals; and 3 years for non-metallic minerals, rocks.

Exploration Special Mining Business License (IUPK)

Licenses to carry out general investigation, exploration, and feasibility studies in special mining business licenses. The validity period of this license is the same as the Exploration Mining Business License (IUP). However, this permission was granted by the Ministry.

Production Operation Mining Business License (IUP)

Licenses granted after obtaining an Exploration Mining Business License (IUP). With this license, it means that it is allowed to carry out production activities, including construction, mining, processing, transportation to sales.

Production Operation Special Mining Business License (IUPK)

The application of this license is the same as for a Production Operation Mining Business License (IUP). The difference is that the Production Operation Special Mining Business License (IUPK) is issued directly by the Ministry, while the Production Operation Mining Business License (IUP) is issued by the local government.

Mining Business License for Special Production Operation for Processing and/or Purification

Business license granted for buying, transporting, processing, and refining activities including selling mineral or coal mining commodities from processed products. This license is valid for 30 years and can be extended for a period of 20 years each time.

Mining Business License for Special Production Operation for Transport and Sales

Business licenses granted to companies to buy, transport, and sell mineral or coal mining commodities. The period of Mining Business License for Special Production Operation for Transport and Sales is granted for a maximum of 5 years and can be extended for a period of 5 years each time. For operational areas within the province, regulations are issued by the Governor. As for the area coverage carried out between provinces, the legality is issued by the Ministry.

IUJP (Mining Service Business License)

This license is granted to carry out core mining services business activities which include all stages and/or parts of mining business activities. The validity period of the IUJP is given for 5 years and can be extended for a period of 5 years each time. Activities within the province are issued by the Governor. As for outside the province issued by the Ministry.

By: Corporate Communications PT ABM Investama Tbk