Politics · Indonesia · 2 hrs ago
Indonesia Restricts Mining Firms From Using Affiliated Contractors
Indonesia’s energy ministry has restricted mining companies’ use of affiliated contractors.
The rule covers holders of mining business permits and special mining permits that hire services for mineral or coal operations.
They must use licensed mining-services companies, and the rule gives priority to providers based near the permitted mining area.
Companies may use a subsidiary or affiliate only with approval from the minister, or from the governor for permits issued by a governor.
Exceptions are available for certain government-assigned work, including strategic projects, mineral processing or refining, coal development, and supply for domestic needs.
Officials have 14 working days to decide once a complete and accurate application is received.
The new decision also replaces a 2010 rule on approvals for affiliated companies.
Indonesia’s Energy and Mineral Resources Ministry has barred mining permit holders from using affiliated mining contractors without ministerial approval.
The restriction is set out in Ministerial Decree No. 365.K/MB/01/MEM.B/2026, signed by Energy and Mineral Resources Minister Bahlil Lahadalia.
The rules prioritize mining services companies located in districts or cities near the mining permit area.
Approval to use an affiliated contractor is limited to permit holders carrying out assignments from the government.
- Who
- Indonesia’s Energy and Mineral Resources Ministry and holders of mining business permits.
- What
- The ministry restricted permit holders from using affiliated mining contractors without approval.
- When
- The decree was signed on September 18, 2026, and takes effect from the date it was issued.
- Where
- Indonesia.
- Why
- Not stated
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Energy and Mineral Resources Minister Bahlil Lahadalia signed the decree.
CNN Indonesia reported on the restriction.
- Decree
- No. 365.K/MB/01/MEM.B/2026
- Minister
- Bahlil Lahadalia
- Approval period
- 14 working days after a complete and correct application is received
- Exceptions
- Government-assigned projects, including national strategic projects and mineral processing or refining facilities
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This Ministerial Decree comes into force on the date it is stipulated, with the provision that if errors are found in this Ministerial Decree at a later date, corrections will be made as appropriate in accordance with the provisions of laws and regulations.