Foreigner shall be able to conduct business in Indonesia in an appropriate ways in accordance to the prevailing laws in Indonesia. For foreigner, there are 2 (two) ways to conduct business in Indonesia, by establishing a 100% fully owned by the foreigner or by having a joint venture with the domestic shareholder. According to the… Read More

COAL CONTRACTS OF WORK AND COAL CO-OPERATION AGREEMENTS Foreign ownership in Indonesian coal mining was until recently conducted through CCAs. Since November 1997, coal mining has been brought more in line with general mining through the CoW structure. There have been two generations of CCAs and one generation of CCoW, which is typically referred to… Read More

TAX COMPLIANCE INCOME TAXCorporate tax returns for the financial year must be filed within three months of the end of the financial year. Generally, an extension will be granted if a request is lodged before the due date and the provisional final tax payment (on an estimated basis) is made by the 25th of the… Read More

PURCHASE AND SALE OF INTEREST IN CoW A CoW allows the CoW company to transfer all or part of its interest in the CoW, subject to the prior written consent of the Minister of Mines and Energy. On such a transfer, the CoW company is not relieved of any of its obligations under the CoW,… Read More

If at any time during the term of a CoW, the company believes the CoW area is unworkable, it may terminate the CoW. The procedures for terminating the CoW may be summarized as follows. Submit a written notice to terminate the contract, attaching a closure plan, related documents, maps, plans, worksheets and other technical data… Read More

CoW OBLIGATIONS During the production stage, the company is required to provide the following Exploitation reports to the Department of Mines and Energy: Fortnightly statistical report; Monthly statistical report Quarterly report concerning progress of operations; An annual report; and Other reports to various departments. The company may export its production, but is encouraged to meet… Read More

The CoW company is the sole contractor for all mining in the CoW area other than for oil and gas, coal and uranium. The company has control, management and responsibility for all its activities, which include all aspects of mining from exploration, development, production, refining, processing, storage, transport and sale. The CoW outlines a series… Read More

APPLICATION FOR CoW A foreign investor that wishes to conduct general mining in Indonesia is required to incorporate an Indonesian subsidiary company (a PMA company) under the framework of Foreign Investment Law No. 1/1967. The newly incorporated company will enter into a CoW with the Indonesian government. However, the company cannot be incorporated before the… Read More

The permitting system for both Indonesian nationals and Indonesian owned companies, and foreign investors, distinguishes between general survey (preliminary investigation) and other exploration work. INDONESIAN NATIONALS AND INDONESIAN OWNED COMPANIES Indonesian nationals and wholly owned Indonesian companies conduct general survey work and exploration under a permit called Kuasa Pertambangan (KP). The application process for a… Read More

Under the Mining Law, the conduct of mineral exploration, development and production in Indonesia is regulated by: The Kuasa Pertambangan (KP); The Contract of Work (CoW); and The Coal Contract of Work (CCoW), previously Coal Co-operation Agreement (CCA). The KP can be owned only by Indonesian nationals or Indonesian owned companies. Foreigners are not permitted… Read More