new regulations in the mining sector of indonesia

Sujatmiko, spokesman for Indonesia's Energy and Mineral Resources Ministry, said these new regulations will become more effective after the government has completed the reforming of licenses in the mining sector.In recent history the regional governments of Indonesia in coal-rich areas (particularly Kalimantan and Sumatra) issued thousands of Mining Business Permits (izin usaha pertembangan or IUPs) without keeping proper administration. Hence, there occur numerous cases of overlapping concession areas, while many of the mining companies lack the mandatory clean and clear certificate (CnC) that was introduced two years ago (the CnC status shows that the miner has no outstanding royalty obligations and other tax debts, fulfilled its exploration and environmental commitments, has no property delineation issues and obtained the necessary forestry permits).Most likely local authorities were eager to issue IUPs (as many as possible) because they received "under-the-table" cash payments. Per November 2016, the government issued a total of 10,818 IUPs. However, only 6,404 have the CnC status, implying there remain more than 4,000 troubled mining licenses.