Doing Business in Indonesia by Foreigner

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


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

Preliminary Investigation and Exploration

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