Minerals Report - International Seabed Authority

as “strategic materials”. Law no. 44 / 1960 replaced the law enacted before
independence, namely the law number 214 / 1899 as amended by the law
number 434 / 1906 which was regarded no longer suitable for Indonesia
because they were considered “liberalistic”, “capitalistic” and
“individualistic”.
Mining efforts include exploration, exploitation, processing / refining,
transportation and marketing (article 4). Carrying out any of these activities
without licenses are violations punishable by jail and / or fines (Article 18).
The Government, on the basis of proposals by the Department of
Mines, determines the boundaries of mining areas. The Minister of Mines can
appoint a contractor to carry out mining activities that cannot be carried out
by the state company, and the contract must be approved by Parliament
(article 6 paragraph 3).
A mining area does not include land rights on the earth ‘s surface.
Mining cannot be carried out: 1) in an area closed for public purposes;
2) graveyards, holy places, public works and roads, railroads, water pipes,
electric and gas pipes etc; 3) around the defense establishment; 4) other
military areas; 5) building, residential areas and all lands appertaining thereto,
except with the permission of the relevant parties.
In extreme urgency, those places can be removed at the cost of the
contractor and after getting permission from the Government authority.
The state company may relinquish parts or all of the contract area after
being approved by the Minister. Relinquishment terminates obligations for
the relinquished area.
The state company must transfer to the Minister all maps and cliché as
well as all land measurements, etc in connection with the mining efforts
(article 10).
INTERNATIONAL SEABED AUTHORITY 851