To implement the provisions of Article 8 of Government Regulation No. 96/ 2021 on the Implementation of Mineral and Coal Mining Business Activities, the president issues a Presidential Regulation on the Delegation of authority to Grant  Business Permits in the Mineral and Coal Mining Sector.


The delegation refers to the transfer of part of the government affairs, which are the authority of the central government to the provincial government in the context of granting business permits in the mineral and coal mining sector. Article 2 paragraph 1 explains that the delegation includes:


a. Standard certificate

It includes consulting activities and mining services business planning in the fields of:

– general investigation

– exploration

– feasibility study

– mining construction

– transportation

– mining environment

– reclamation and post-mining

– mining safety

– mining

b. Permit

c. Guidance on the implementation of the delegated business permit

d. Supervision of the implementation of the delegated business permit


Article 1 letter c stipulates that the supervision consists of planning the supervision, implementation of the supervision and monitoring and evaluation of the supervision. The supervision is done by mining inspectors and mining supervisory officers assigned by the governor. Mining inspectors and mining supervisory officials are required to report the results of the supervision to the governor. In the case of  violations, both from mining techniques and governance, the governor is obliged to take action. The sanctions imposed can be in the form of advisory or administrative sanctions.

Delegation of the supervision over the implementation of business permit stipulated in Article 2 Paragraph 10 does not include:

a. budget processing
b. facilities and infrastructure
c. operational

Delegation of Additional Authority

In addition to the delegations stipulated in Article 2, the central government also delegates some of the authority to support the management of mineral and coal mining as follows:

The granting and zoning of a non-metal mineral mining business permit, a certain type of non-metal mineral mining business permit area, and a rock mining business permit area shall be given in accordance to  the following provisions:

a. located in one provincial area

b. sea area up to twelve nautical miles

c. determination of the benchmark price for non-metallic minerals, valuation of the benchmark price for certain types of non-metallic minerals, and valuation of the benchmark price for rocks

d. providing recommendations or approvals related to the delegated authority


The central government provides guidance and supervision to provincial administrations on the implementation of the delegation. The provincial administration is obliged to carry out the delegation in accordance with the applicable laws and regulations.

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