Indonesia has various potential geological resources, including mineral and coal resources. There are various types of metallic minerals, non-metallic minerals, and rocks. Metallic minerals include gold, silver, nickel, tin, zinc, aluminium, bauxite, and rare earth metals. Non-metallic minerals include bentonite, dolomite, feldspar, zircon, phosphate, gypsum, kaolin, quartz sand, and zeolite. Rocks include limestone, andesite, and marine sand. Almost all objects used in modern life have mineral resources as their raw materials. To meet human needs in supporting modern life, the extraction of minerals and coal is necessary. These minerals are used in various industries such as environmentally friendly energy generation, manufacturing, defence, chemical, pharmaceutical or health, textile, transportation equipment, electronics and information communication technology (ICT), as well as food and other industries.
The Indonesian mining sector offers various sub-sectors that can be explored by investors, namely :
1. Mine Owner / Mining Business Licence for Production Operation (IUP OP Permit)
Mine Owner / Mining Business Licence for Production Operation or an IUP OP permit (Izin Usaha Pertambangan Operasi Produksi / IUP OP) represents the highest level of permits in the mining sector. Companies holding an IUP OP not only possess the authority to conduct mining activities on the land under their control but also enjoy the privilege of engaging in direct sales. Investors interested in obtaining an IUP OP permit can pursue this by either acquiring an existing company or participating in government tenders for permit allocation.
The IUP OP permit bestows upon its holder the authority to conduct a spectrum of mining activities, spanning open-pit mining, underground excavation, and underwater mining operations. The diversity of these operations is contingent upon the outcomes of comprehensive technical mining studies as articulated in the meticulously prepared feasibility study document. Such studies serve as a roadmap, guiding the mining company in its pursuit of efficient and sustainable extraction practices.
Furthermore, companies holding the IUP OP permit have the flexibility to undertake mining activities independently or engage in collaborative ventures with holders of the Mining Services Business License (IUJP). The scale of production within these mining activities is intricately tied to the approved Work Plan and Budget (RKAB) sanctioned by Minister of energy and mineral resources of Indonesia.
Before commencing mining operations, owners of IUP OP permits need to undertake several crucial steps. This involves conducting investigations in the area, exploring available resources, carrying out comprehensive feasibility studies, and formulating a budget that is approved by Minister of energy and mineral resources of Indonesia. This meticulous approach ensures that mining operations are not only economically viable but also environmentally friendly, aligning with the regulations established by the Indonesian government. Therefore, the role of a legal consultant is pivotal in navigating the complexities of starting a business in the Indonesian mining sector.
Furthermore, acquiring an IUP OP permit necessitates adherence to social and environmental standards. Mining companies are obligated to provide compensation for the use of community land, furnish annual cost information (RKAB) to the government, and address various social issues with local communities.
Having an IUP OP permit in the mining sector provides lucrative opportunities for companies. With this permit, companies can sell their high-value mining products both domestically and internationally, significantly increasing revenue. Additionally, the construction of a smelter plant will further enhance the value of mining products, improving competitiveness, and fostering local economic growth. An example of a successful investor in the mining sector is Prajogo Pangestu, the wealthiest person in Indonesia in 2023, who has leveraged the potential of this sector to achieve remarkable financial success.
2. Mining Product Trader (IPP) / IUP OPK angkut jual
Investors holding a permit as a Mining Product Trader or a Transportation and Sales Permit (izin pengangkutan dan penjualan (IPP) enjoy several advantages that distinguish them as IPP permit holders. Compared to owners of IUP OP permits, IPP owners are not bound by the obligation to own a mine at a specific location in Indonesia to initiate their operations. Simply by possessing an IPP permit, they can enter the market and engage in transactions within the scope of mining.
The primary advantage of IPP owners lies in their flexibility to capitalize on market opportunities. They can easily purchase mining products from companies holding IUP OP permits without being directly involved in mining operations. This provides convenience for investors who may be more focused on trade and distribution aspects than the operational activities of the mine itself.
Furthermore, IPP owners can leverage the price difference between local and export prices to gain profits. By buying mining products at local prices and selling them for export at higher prices, IPP owners can create a significant profit margin. This strategy allows them to achieve financial gains without bearing the operational risks associated with direct mine ownership.
IPP covers various products such as metals (gold, silver, copper), coal, and other minerals. IPP holders are divided into several types of business fields, namely: (1) Transport and Sales Permit for Metal Minerals (2) Transport and Sales Permit for Metal Coal (3) Transport and Sales Permit for Non-Metallic Minerals (4) Transport and Sales Permit for Rocks.
To acquire an Izin Pengangkutan dan Penjualan (IPP) permit, the company must establish a Memorandum of Understanding (MoU) with the entity holding the mining rights or IUP OP (Izin Usaha Pertambangan – Operational Production). Following this, the company can proceed to apply for the IPP permit to the Indonesian government. At MyLegal, we take pride in our extensive experience in offering comprehensive services to foreign investors seeking IPP permits for various commodities. Our seasoned team is well-acquainted with the intricate processes involved in obtaining IPP permits and possesses a proven track record of successfully assisting companies in navigating the regulatory landscape. Rely on MyLegal to guide you through the entire process, ensuring a smooth and efficient journey toward securing IPP permits in compliance with Indonesian regulations
3. Mining Services Business License / Izin Usaha Jasa Pertambangan (IUJP)
Mining Services Business Permits (IUJP) have an important meaning because they are given exclusively to business entities that have an important role in providing various important services in the mining industry. To obtain a Mining Services Business License (IUJP), a company is required to have equipment and expertise that is appropriate to the business field specified in the IUJP requirements. Mylegal has an extensive inventory of equipment and an experienced team of experts. We are dedicated to facilitating fast and accurate IUJP applications, leveraging our resources to ensure a smooth and efficient licensing process.
Qualification Types for Mining Services are as follows / 采矿服务的资质类型 :
General Investigation 般性调查
1.1. Reconnaissance Survey 勘查 |
1.2. Remote Sensing 遥感 |
1.3. Prospecting 探矿 |
2.1. Exploration Management 勘探管理 |
2.2.Position Determination 位置确定 |
2.3.Topographic Mapping 地形测绘 |
2.4.Geological Mapping 地质测绘 |
2.5.Geochemistry 地球化学 |
2.6.Geophysics 地球物理 |
2.7.Subsurface Survey 地下调查 |
2.8.Geotechnical 岩土工程 |
2.9.Exploration Drilling 勘探钻井 |
2.10. Exploration pilot 勘探取样 |
2.11. Resource and Reserve Estimation 资源与储量计算 |
3.1. environmental documents (Environmental Impact Assessment (EIA/ AMDAL and/or Environmental Management Plan (UKL-UPL) 环境影响评估 |
3.2. Feasibility Study Documents 编制可行性研究 |
4.1. Tunneling 隧道开挖 |
4.2. Underground Mine Backfilling 地下矿山固井 |
4.3. Underground Mine Support 地下矿山固井 |
4.5. Shaft Sinking 竖井掘进 |
4.6. Underground Mine Lighting System 地下矿山照明系统 |
4.7. Underground Mining Excavation, Loading, and Hauling Equipment 地下矿山挖掘工具、 装载工具、运输工具 |
4.8. Drilling and Blasting 钻井与爆破 |
4.9. Workshop Facilities 车间设施 |
4.10. Mining Commissioning 矿山调试 |
4.11. Mine Ventilation 矿山通风 |
4.12. Processing Facilities 加工设施 |
4.13. Refining Facilities 精炼通风 |
4.14. Mining Road 矿山道路 |
4.15. Port 港口 |
4.16. Explosives Storage 炸药库 |
4.17. Sistem Penyaliran 排水系统 |
4.18. Temporary Storage Facility for Hazardous and Toxic Substances (B3) 液体燃料存放设施 |
5.Transportation 运输
5.1 Using Trucks 使用卡车 |
5. 2, using lorry 使用轨道运料车 |
5.3. Using belt conveyor 使用皮带输送机 |
5.4. Using Barge 使用管道 |
5.5. Using Pipes |
5.6. Using an Elevator 使用电梯 |
6. Mining Environment 采矿环境
6.1. Environmental Monitoring 环境监督 |
6.2. RKL-RPL Survey 环境管理规划/环境监测规划调查 |
6.3. Management of Acid Mine Drainage 矿区酸水管理 |
6.4. Environmental Audit 采矿环境审计 |
6.5. Erosion Control 侵蚀控制 |
7. Post-Mining and Reclamation 采矿后与复垦
7.1. Reclamation 复垦 7.2. Mine Closure 矿山关闭 7.3. Facility Demolition 拆除设施 7.4. Land Preparation and Arrangement 土地整治 7.5. Nursery 播种 7.6. Planting 种植 7.7. Plant Care 维护 |
8. Occupational Health and Safety 劳动安全与卫生
8.1. Technical Inspection and Testing 技术检查与测试 |
8.2. Mining Occupational Health and Safety Audit 采矿劳动安全与卫生审计 |
9. Mining 采矿
9.1. Stripping, Loading, and Transporting Overburden Soil/Rock 表层土/岩石的剥离、装运与转移 |
9.2. Excavation/Earthwork/Rock Breaking overburden preceded by blasting. 表层土/岩石的破碎/挖开 |
9.4. Overburden Soil Transport Coal / Mineral Ore 表层土、煤炭与矿石的运输 |
9.6. Mineral getting 挖矿(获得矿物) |
9,7 coal getting 挖煤(获得煤炭) |
Why choose Mylegal as your business agent in Indonesia ?
🤝 For over a decade, we have been a reliable partner in managing foreign investments in the mining and manufacturing sectors. Proudly, we have issued over 100 successful permits, making us the top choice for investors seeking success.
Why Choose Us?
✅ Proven Experience: Since 2022, we have led in handling foreign investments, proving the quality and reliability of our services.
✅ One Stop Solution: We offer comprehensive services covering all your investment needs, providing convenience at every step of your investment journey.
Our Services in the Mining Sector:
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Investing in the mining sector has never been easier. Entrust your future to us, an investment partner who understands your needs and is ready to help you achieve success. Contact us now for a free consultation and discover your investment potential with us!
MyLegal is to provide professional services for environmental and industrial permitting, mining, and legal affairs in Indonesia. The company specializes in helping clients obtain permits and comply with regulations related to environmental protection, mining operations, and other industrial activities.
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