On Wednesday, September 6 2023, the Directorate General of Mineral and Coal held a Public Consultation for the Draft MEMR Regulation regarding the RKAB which was held offline at the Sari Pacific Hotel Jakarta and online (live streaming via the Minerba TV YouTube channel). This draft ESDM Ministerial Regulation considers the principles of accuracy, efficiency, convenience and acceleration in providing RKAB licensing services, where this draft regulates the following matters:
- The concept for preparing and approving the RKAB is divided into RKAB for the Exploration Activity Stage (1 year) and RKAB for the Production Operation Stage (3 years)
- Strict Administrative Sanctions for permit holders who carry out mining business activities without having approval from the RKAB are License Revocation without written warning Sanctions and Temporary Suspension
- Determining the fulfilment of essential aspects in the preparation, evaluation and approval of the RKAB
- Efficiency in preparing, evaluating and approving the RKAB
The main matters regulated in the discussed Draft of MEMR Regulation are:
- Provisions related to the preparation of the RKAB
- Provisions related to Reporting
- Provisions related to Administrative Sanctions
PROVISIONS RELATED TO THE PREPARATION OF RKAB
Arrangements related to the RKAB based on the discussed Draft of MEMR Regulation can be seen in the following table:
|
Information |
RKAB Exploration Stage |
RKAB Production Operation Stage |
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RKAB Timeframe |
Prepared for an activity plan for 1 (one) year |
Prepared for an activity plan for 3 (three) years |
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Submission of RKAB |
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Evaluation and Approval of RKAB |
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RKAB Approval Criteria |
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Prohibition of carrying out activities(RKAB not submitted / RKAB not yet approved / RKAB rejected) |
It is prohibited to carry out general investigation activities, exploration and feasibility studies |
It is prohibited to carry out construction, mining, processing and/or refining, development and/or utilization as well as transportation and sales activities, including further exploration activities and changes to feasibility studies. |
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Implementation of RKAB |
It is prohibited to produce minerals or coal in excess of the amount planned for production each year in the RKAB |
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Can submit 1 change to the RKAB in each current year, which is submitted after submitting the first quarterly report or no later than July 31 of the current year. Changes to the RKAB can be submitted more than 1 time if:
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PROVISIONS RELATED TO REPORTING
In principle, the arrangements regarding reporting in the discussed Draft of MEMR Regulation are the same as MEMR Regulation No. 7 of 2020, namely regarding periodic reports and special reports, but the latest draft of the MEMR discusses several arrangements for reporting for permit holders which can be seen in the following table:
|
Permit Holder |
Information |
|
IPR (People's Mining Permit) |
Periodic reports are submitted to the Governor Reports include environmental management and monitoring, as well as reports on the implementation of production operations |
|
SIPB (Rock Mining Permit) |
Periodic reports are submitted to the Governor Reports include reports on environmental management and monitoring as well as reports on the implementation of mining activities |
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IUJP (Mining Services Business Permit) |
Periodic reports are submitted to the Minister through the Director General or Governor in accordance with their Authority. Reports include reports on the implementation of mining services business activities (where previously IUJP reports were through IUP holders) |
Submission of periodic reports in the form of monthly reports to the Director General on behalf of the Minister or Governor by the permit holder within 10 calendar days after the end of each month except for mining waste water quality reports no later than 15 calendar days after the end of each month (where previously, no later than 5 calendar days for monthly reports). Reports submitted by permit holders can be responded to by the Director General on behalf of the Minister or Governor, but there is no approval of the report.
PROVISIONS RELATED ADMINISTRATIVE SANCTION
Holders of IUP, IUPK, IUPK as a continuation of the operation of Contracts/Agreements, IPR, SIPB, IUJP, transportation and sales permits who do not comply with or violate the provisions in the Ministerial Regulation may be subject to sanctions. These can be seen in the following table:
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Penalty |
Information |
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Administrative Sanctions |
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Written Warning Sanctions |
Given by the Director General on behalf of the Minister or Governor in accordance with their authority at most 3 times with a warning period of 30 calendar days each |
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Sanctions for temporary suspension of part/all activities |
Given by the Director General on behalf of the Minister or Governor in accordance with his authority within a maximum period of 60 calendar days in the event that the permit holder has not carried out his obligations after the expiration of the written warning period |
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Permit Revocation Sanctions |
Granted by the Director General on behalf of the Minister or Governor in accordance with his authority in the event that the permit holder has not carried out his obligations after the end of the temporary suspension period for part or all of his business activities. |
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Special Administrative Sanctions |
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Revocation of permits without written warning and temporary suspension of some/all activities |
Carry out mining activities and/or sale of minerals or coal without having RKAB approval Not submitting an application for RKAB approval for 2 consecutive years. |
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Sanctions for temporary suspension of part/all activities without written warning |
Permit holders produce in excess of the annual production plan that has been approved in the RKAB stage of production operations |
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