Individuals and cooperatives can apply for mining licenses in Indonesia

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The Minister of Energy and Mineral Resources recently signed Ministerial Regulation No. 18 of 2025 as the basis for local governments to manage popular mining licenses (IPRs), applicable to individuals and cooperatives.The regulation provides thatPopular mining areas (WPR) are part of provincial mining areasThe proposal will be made by the governor of the province based on the provincial mining plan, local unlicensed mining activities, etc., taking into accountEnvironmental carrying capacity, spatial planningand other factors.

WPR only allows miningPrimary metal ores at specific depths or secondary ores in rivers and riverbanksThe area of a block does not exceed 100 hectares. Governors will need to develop regulatory documents after determining WPRs, covering coordinate maps, rocky soil conditions, etc.Ten points, and be accompanied by relevant technical approvals or recommendations. IndividualIPRnot exceeding5 hectaresCooperativesNot exceeding 10 hectares, the permittee shall refine the business identification number.

The governor is responsible for IPR'sEnvironmental management, reclamationand other work, the permittee will deposit 101 TP3T of the sale of minerals as a reclamation bond in a bank account in the name of the governor, which will not be utilized until reclamation is completed. The governor will designateState-owned enterprises, local state-owned enterprises or private enterprisesProcessing of metal ores produced by the IPR. In addition the licensee is required to payplacer miningFees, and local taxes on specific commodities such as non-metals, and popular mining fees are included in local revenues for mining management.

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