Revision of PP 96/2021 Provides Legal and Investment Certainty

Coal mining business players positively welcome the government's plan to revise Government Regulation ("PP") No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities ("PP 96/2021"). The revision is believed to make the business climate and mining investment remain attractive to investors.

"In general, the revision of the PP can provide legal and investment certainty for the mining industry whose investment is long-term," said Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia when confirmed by Hukumonline.

Regarding the points of the PP revision, Hendra assessed it as a form of synchronisation with the derivative regulations below. One of them is the revision point regarding the change in the words "Annual Work Plan and Budget" to "Work Plan and Budget" so that the word "Annual" is eliminated.

Hendra continued, the change to Work Plan and Budget ("RKAB") is in line with the Minister of Energy and Mineral Resources ("Minister") Regulation No. 10 of 2023 concerning Procedures for Preparing, Submitting, and Approving Work Plans and Budget Costs and Procedures for Reporting the Implementation of Mineral and Coal Mining Business Activities ("Permen ESDM 10/2023") which regulates the submission of RKAB for 3 years.

Permen of ESDM 10/2023 Article 3 paragraph (1) letter a states that the RKAB for the Exploration activity stage is a plan for mineral and coal mining business activities for 1 (one) year. Meanwhile, Article 3 paragraph (1) letter b reads: for the RKAB for the Production Operation stage of activity in the form of a plan for mineral and coal mining business activities for 3 (three) years.