Indonesia, rich in mineral resources, maintains a strict regulatory framework for mining businesses. To legally conduct services in the mining sector, every business entity must obtain an IUJP (Izin Usaha Jasa Pertambangan), or Mining Business Licensing in Indonesia (Jasa Pengurusan IUJP).
By holding an IUJP, a company demonstrates its commitment to responsible mining practices, worker safety, and sustainable development, which are critical in Indonesia’s highly regulated and environmentally sensitive mining industry. Moreover, the IUJP serves as a prerequisite for businesses to collaborate with mining operators, participate in government-approved projects, and secure investor confidence.
In addition, the IUJP plays a pivotal role in promoting transparency and accountability within the mining services sector. It allows the government to monitor service providers effectively, ensuring that operations do not compromise ecological balance or community welfare. Companies with an IUJP are better positioned to adopt advanced technologies, environmental management systems, and international best practices, giving them a competitive edge in both domestic and international markets.
Securing an IUJP is not merely a bureaucratic formality; it reflects a company’s professionalism, legal compliance, and long-term commitment to the growth and sustainability of Indonesia’s mining industry. With increasing scrutiny from regulatory bodies, investors, and environmental advocates, having a valid IUJP is becoming an indispensable asset for businesses that want to thrive responsibly in the country’s mining ecosystem.
1. What is IUJP (Mining Services Business License)?
The IUJP is a mandatory license for companies offering services that support mining operations. This includes, but is not limited to, activities such as drilling, exploration, consulting, transportation of mining products, and environmental management. Under Indonesian law, engaging in mining service activities without an IUJP is illegal and may result in administrative sanctions, fines, or revocation of permits.
The IUJP is governed by the Mineral and Coal Mining Law, specifically Law No. 4 of 2009, which was later amended by Law No. 3 of 2020, along with implementing regulations from the Ministry of Energy and Mineral Resources (ESDM). Its primary purpose is to ensure that all service providers operate responsibly, maintain safety standards, and respect environmental regulations.
2. Legal Basis for Mining Business Licensing
The IUJP framework is regulated under:
- Law No. 4/2009 on Mineral and Coal Mining (as amended by Law No. 3/2020)
Government Regulation No. 96 of 2021 concerning the Execution of Mineral and Coal Mining Business Operations. - Ministerial Decree ESDM No. 1827K/30/MEM/2018 regarding Good Mining Practices.
These laws ensure that each licensed service provider upholds responsible mining standards, occupational safety, and environmental protection.
3. Types of Mining Business Permits
In Indonesia’s mining regulatory structure, there are several key permits:
- WIUP (Wilayah Izin Usaha Pertambangan) – Mining Business Permit Area
- IUP Eksplorasi – Exploration Mining License
- IUP Operasi Produksi – Production Operation Mining License
IUJP – Mining Service Business License for supporting service providers
While IUP permits are intended for companies conducting direct mining operations, the IUJP applies to businesses providing auxiliary services that support mining activities. This distinction is crucial: even if a company does not extract minerals directly, it must still comply with IUJP requirements if it serves the mining sector.
4. IUJP Application Procedure
The IUJP application can be submitted through the Online Single Submission (OSS) system managed by the Indonesian Investment Coordinating Board (BKPM). Applicants must provide:
- Company legal documents , such as Deed of Establishment, NIB (Business Identification Number), and NPWP (Tax Identification Number)
- Business plan and scope of mining services
- Proof of technical competency, demonstrating the ability to deliver mining services safely and effectively
- Environmental and safety compliance documents
After submission, the Ministry of Energy and Mineral Resources evaluates the application. Upon successful verification, the IUJP is issued electronically, allowing the company to operate legally within Indonesia’s mining services sector.
5. Importance of Legal Compliance
Obtaining an IUJP goes beyond regulatory adherence; it is an essential component of business legitimacy. Legal compliance provides several tangible benefits:
- Credibility and Trust – Clients, investors, and government institutions are more likely to engage with companies holding proper licenses.
- Risk Mitigation – Operating without a license exposes businesses to fines, permit revocation, and reputational damage.
- Business Sustainability – Licensed companies can pursue long-term contracts and participate in larger projects without legal obstacles.
For new and existing mining service companies, an IUJP signals professionalism, commitment to ethical standards, and adherence to industry best practices.
6. Professional Assistance for IUJP Processing
While the IUJP application process is straightforward on paper, navigating Indonesia’s mining regulations can be complex, especially for new businesses. Legal and procedural nuances often require expert guidance. Seeking professional assistance can:
- Simplify documentation and submission requirements
- Ensure regulatory compliance at every stage
- Minimize delays and administrative errors
Consulting with experienced legal advisors helps companies streamline their IUJP application, avoid unnecessary obstacles, and focus on core operational activities.
