Mining Business License: Why it’s Important and How to Get It

Jan 6, 2023

Mining activity is an extractive business related to the management of natural resources. For mining activities to be carried out properly, starting from regulations, not damaging the environment in the long run, and being able to create jobs, mining entrepreneurs must arrange mining business permits.

The mining business license will be one of the indicators of whether the business has a positive impact on the lives of the surrounding community and the environment. In addition, it is also a guarantee that the mining companies will carry out the rehabilitation process for the damaged environment.

What Is a mining business license?

Based on Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, a mining business license is a permit to carry out a mining business.

The mining business referred to here is an activity of mineral or coal exploitation which includes several stages, which are general investigation, exploration, feasibility study, construction, mining, processing and/or refining or development and/or utilization, transportation and sales, as well as post-mining.

What are the types of mining business licenses?

There are various types of mining business licenses, including:

  • Exploration mining business license as well as operation and production mining business license
  • People’s Mining License
  • Special permits granted in the field of mineral and coal mining which consist of
    • A temporary permit to carry out transportation and sale
    • Mining business license for Production Operation for sales
    • Mining business license for Special Production Operations  for transportation and sales
    • Mining business license for special Production Operation for processing and refining

Who can get a mining business license?

  • The business entity, namely any legal entity engaged in the mining sector established under Indonesian law and domiciled within the territory of the Republic of Indonesia
  • Cooperative
  • Individual Company


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