Govt and House agree on three forms of mining permits

The government and the House of Representatives (DPR) have reached an agreement on the introduction of three types of mining contracts to be included in the new mining bill, which is now being deliberated by the House members, Kontan reported Thursday.

 

Sony Keraf, the chairman of the task force for the deliberation of the mining law, said in Jakarta Wednesday that the mining permits would comprise three categories thatis General Mining License (IUP), People's Mining License (IPR) and Mining Special License (IKP).

 

IUP is similar to Mining Contract (KP) under the current contract system applied in the mining sector. It will be issued by regional administrations for small-scale mines. IPR is to be issued by the regional administrations to people who now conduct mining activities illegally. It thus aims to "legalize" their activities.

 

Meanwhile, IKP will be issued to big investors applying for concessions in reserve mining areas which will be established by the President on proposal from or consultation with the House. IKP will be issued by Minister of Energy and Mineral Resources. (*)