Mining Indonesia

Indonesia Mining

Mining in Indonesia Investment and Taxation Guide
May 2010

Cover photo : PT Newmont Nusa Tenggara DISCLAIMER: This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, KAP Tanudiredja, Wibisana & Rekan, PT Prima Wahana Caraka, or PT PricewaterhouseCoopers FAS, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

Contents
Preface I. II. III. IV. V. Overview of the Mining Regulatory Framework New Mineral and Coal Mining Law Contracts of Work Tax Regimes for the Indonesian Mining Sector Additional Regulatory Considerations for Mining Investment 1 3 7 27 41 57

Appendices A. B. C. D. E. F. About PricewaterhouseCoopers Regional Taxes Ministry of Energy and Mineral Resources Industry Associations Glossary Summary of CoW generations 71 73 75 76 78 80 91 92

Acknowledgements Other PricewaterhouseCoopers Mining Publications Map: Indonesian Mining Areas Map (provided in insert pocket)

PricewaterhouseCoopers Indonesia

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Photo source : PT Adaro Energy Tbk

Preface

Investors in the Indonesian mining industry have long been awaiting new policy to replace that based on the 1967 law. In an attempt to provide more regulatory certainty and to encourage new investment in the sector, the government passed a new Law on Mineral and Coal Mining (Law No. 4/2009) in early 2009. This is the most significant change to the mining regulatory environment in more than... [continues]

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