Mining operations in Indonesia require a layered set of licenses before any activity begins, ensuring companies feel supported and confident in compliance steps.
The regulatory landscape has shifted with new rules on annual work plans, mining area allocation, and enforcement, all of which directly affect operational planning. Missing any one of these can halt production or put the entire license at risk.
Mining operations are categorized as a high-risk business activity under Indonesia's Risk-Based Business Licensing system. Therefore, simply holding an IUP (Mining Business License) or IUPK (Special Mining Business License) is insufficient. The specific licenses required vary based on several factors, such as:
The following licenses and approvals are generally required for mining operations in Indonesia.
The Nomor Induk Berusaha (NIB) is the essential business registration issued through the Online Single Submission (OSS) system. Every company in Indonesia must obtain an NIB. However, for mining companies, this alone is not sufficient. A specific mining business license is also required.
Foreign investors should ensure that their KBLI classification, ownership structure, and licensing pathway are aligned from the outset, as any misalignment later can result in delays.
Before the main mining license, a company must secure the mining area:
| Area Basis | Meaning | Used For |
| WIUP (Wilayah Izin Usaha Pertambangan) | Mining Business License Area | IUP |
| WIUPK (Wilayah Izin Usaha Pertambangan Khusus) | Special Mining Business License Area | IUPK (typically on former PKP2B or state reserves) |
Under Government Regulation (PP) 96/2021, as amended by PP 25/2024 and PP 39/2025, a Mining Business License (WIUP) for metal minerals and coal is typically obtained through auction, while non-metal minerals and rocks require a standard application.
The maximum area for a metal mineral WIUP is 25,000 hectares, and for a coal WIUP, it is 15,000 hectares. A WIUP or WIUPK only designates the area for applying for the corresponding Mining Business License (IUP or IUPK) and does not permit mining operations by itself.
The IUP (Izin Usaha Pertambangan) is the main mining business license for private companies, including foreign-invested (PMA) companies. It has two stages:
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Commercial extraction cannot proceed without an IUP-OP, and the exploration stage (with a feasibility study) must generally be completed first.
The IUPK applies to activities in WIUPK areas, usually former PKP2B coal contract areas or strategic state reserves. As per PP 25/2024, priority for WIUPK licenses can be granted to business entities owned by religious organizations in these areas, as well as to state- and regionally owned enterprises.
The RKAB approval, which sets the work plan, production volume, and budget, is crucial for legal mining activities. Without this approval, a company cannot legally produce or sell minerals, making it a key compliance step.
The 2025–2026 update, under Permen ESDM 17/2025, reintroduces annual RKAB submissions, with applications due from October 1 to November 15 each year. This change affects planning and compliance for upcoming operations.
This change aims to prevent oversupply, particularly in nickel, coal, and bauxite, and align production with actual market absorption.
Required before operations begin, under PP 22/2021. The document depends on the scale of impact:
Reclamation and post-mining plans, along with financial guarantees, must now be demonstrated as part of the annual RKAB, thereby tightly linking rehabilitation obligations to operational approvals.
Depending on the actual operational footprint, additional permits may be mandatory:
| Activity | Supporting Permit |
| Providing mining services to other miners | IUJP (Mining Services Business License) |
| Mining inside a forest area | PPKH (Forest Area Use Permit) |
| Generating hazardous waste | B3 waste management permit |
| Discharging wastewater | Wastewater discharge permit |
| Standalone processing/refining (no integrated mine) | IUI under the Ministry of Industry |
| Transportation and sales only | IUP for Transportation and Sales |
| Employing foreign workers | RPTKA and related workforce permits |
Read more: Industrial business license guide in Indonesia: What permits are needed?
Missing a supporting permit, especially a PPKH for forest areas or a B3 waste permit, is a common cause of inspection findings and production suspensions.
Mining licensing requires coordinated work across company setup, OSS-RBA registration, mining approvals, environmental documentation, and ongoing reporting. A gap in any area can delay production or trigger sanctions.
Ascentium Indonesia supports mining companies through: