Presidential Regulation No. 55 of 2022 concerning the Delegation of the Granting of Business Licenses in the Mineral and Coal Mining Sector

After 7 months since the issuance of Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities, that came into force on 9 September 2021, Indonesian President, Joko Widodo has signed Presidential Regulation No. 55 of 2022 regarding the Delegation of the Granting of Business Licenses in the Mineral and Coal Mining Sector (PR 55/2022) as a mandate of Law No. 3 of 2020 concerning the Amendments of Law No 4 of 2009 regarding Mineral and Coal Mining.

PR 55/2022 governs the delegation of authority given by the central government to provincial regional governments includes: standard certificate and licenses, as well as guidance and supervision in relation to business licenses. Regarding supervision, in carrying out supervision, the governor assigns a Mining Inspector and Mining Supervisory Officer. In this case, the Mining Inspector is only at the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources and some supervisory officials are currently still at the Directorate General of Mineral and Coal.

In addition, the central government also delegates part of its authority related to the management of mineral and coal mining, which covers (i) the granting and stipulation of non-metal mineral mining business permit areas, certain types of non-metal mineral mining business permit areas and rock mining business permit areas, all of which within a single provincial area or must be located within a marine area of up to 12 nautical miles offshore; (ii) determinations of benchmark prices for non-metallic minerals, determinations of benchmark prices for certain types of non-metallic minerals and determinations of benchmark prices for rocks; and (iii) the issuance of recommendations or approvals in relation to the delegated authority.

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