印尼矿业指南2023-英-170页_6mb

Mining Industry Guide in Indonesia - Key Summary

Disclaimer and Regulatory Framework

• The document serves as a general guide for stakeholders, does not constitute professional advice, and must be updated with current regulations.
• The 2020 Amendment to Law No. 4/2009 centralizes mining licensing and introduces new licenses (IUP, IUPK, IPR).
• The Job Creation Law (2020) imposes specific tax and fiscal rules for coal mining.

Economic Overview

• Mineral & Coal Prices: Significant volatility since 2020 due to global factors like COVID-19, geopolitical issues, and energy transitions.
• Production & Investment: Indonesia set ambitious coal production targets (e.g., 695 million tonnes in 2023). Nickel and copper demand surged due to EVs and battery metals.
• Economic Impact: Mining contributes significantly to Indonesia's GDP, income, and exports.

Regulatory Changes and Framework

• Amendment to Mining Law (2020): Replaces CoW/CCoW with licensing system (IUP/IUPK), extends operations via IUPK Continuation.
• Implementation Regulations: Includes the 2023 GR No. 25, expanding mining areas and refining WIUP/WIUPK determination.
• Licenseholder Requirements: Holders must comply with detailed procedural, reporting, and environmental obligations.

Tax Regime

• Recent Tax Rules: GR 36/2023 requires exporters of natural resources to deposit 30% of foreign exchange proceeds (DHE) into Indonesian banks.
• Royalty Structures: Vary by commodity (coal: 5%-13.5%; Nickel: 1%-10%).
• Fiscal Incentives: Available for integrated processing facilities and companies meeting specific investment criteria.

Mining Investment Requirements and Restrictions

• Mandatory In-Country Processing: Requires mineral processing/refining to increase domestic value (e.g., PerMen 25/2018).
• Foreign Ownership: Foreign investors face layered divestment obligations based on investment scale, with sanctions for non-compliance.
• Coal Export Restrictions: CoWs/CCoWs can be phased out via IUPK conversions until 2024.

Additional Regulatory Considerations

• Carbon Tax: Scheduled implementation starting 2025, potential impact on emissions-heavy operations.
• Corporate Social Responsibility (CSR): Companies must engage in sustainable development and community welfare activities.
• Banking & Reporting Changes: BI regulations introduced DHE deposit requirements and stricter monetary controls.

Conclusion

• The Indonesian mining sector offers significant investment opportunities, particularly in critical minerals and coal, but requires careful navigation of evolving regulations, tax obligations, and environmental compliance.
• Stakeholders should engage with legal and financial experts early in investment processes to align with ongoing reforms.