Publication

Yosie Monoarfa, S.H., CPS., CMLC., Founding Partner of Jurist Terra & Co., provided legal counsel to the Director and Management of PT Bolmong Timur Primanusa Resources (PT BTPR) during their attendance at a Public Hearing (RDPU) with the East Bolaang Mongondow (Boltim) Regency Regional People’s Representative Council (DPRD), the Boltim Police Department, the North Sulawesi Provincial Government, and community members on Thursday, June 12, 2025. This RDPU addressed follow-up actions regarding community reports of mining activities in the Garini Forest area, Buyat Barat Village, Kotabunan Subdistrict. The Garini area is prone to illegal gold mining (PETI) activities, and some parts of it are suspected to be located within protected forest areas or areas that should be protected. The RDPU focused on alleged mining conflicts and unauthorized activities by other companies in the area, with the main issues being expired permits and operations within forest areas. In the mining industry, the greatest risk is not commodity price fluctuations or geological challenges, but rather legal and regulatory risks. Our experience in assisting clients, including in the dynamics of RDPU in regions such as Boltim, confirms that the absence or defect in a single permit document can trigger the suspension of operations, the

An Analysis of the Complexities of Domestic Law and the Foundations of Customary Rights In the context of land acquisition by private mining companies—particularly when the targeted area consists of customary lands located within forest areas—the application of the principle of Free, Prior, and Informed Consent (FPIC) is a central and complex legal issue. Under Indonesian domestic law, the absolute obligation of FPIC has not been explicitly regulated in the Land Law for purely private land acquisition transactions (transfer of rights). However, Indonesia’s legal framework provides strong support for the recognition of the rights of Indigenous Communities (MHA), which indirectly mandates a process equivalent to FPIC. This recognition of ILC rights is rooted in Article 18B, Paragraph (2) of the 1945 Constitution, which acknowledges and respects the unity of Indigenous Legal Communities along with their traditional rights. Article 3 of Law No. 5 of 1960 on Agrarian Principles (UUPA) also normatively recognizes customary land rights and similar rights of Indigenous Legal Communities (MHA) over land, provided that such rights still exist in practice and their use does not conflict with national interests or higher-ranking laws and regulations. Regulation of the Minister of Home Affairs (Permendagri) No. 52 of 2014 on

Introduction In recent years, the Indonesian government has increasingly strengthened the regulatory framework for small-scale mining as part of efforts to regulate small-scale mining activities, which have largely been conducted informally. One of the key instruments within this framework is the Small-Scale Mining Area (WPR) and the issuance of Small-Scale Mining Permits (IPR) to local communities. Mining regulatory reforms triggered by amendments to Law No. 4 of 2009 on Mineral and Coal Mining—as amended by Law No. 3 of 2020—have significant implications for the governance of community-based mining. In addition, various implementing regulations issued by the Ministry of Energy and Mineral Resources (ESDM) also clarify the procedures for designating areas and the mechanisms for granting permits to community mining operators. In practice, the delineation of WPRs and the issuance of IPRs are not only related to granting rights to communities but are also closely tied to environmental control, legal certainty, and the integration of small-scale mining activities into the national mining governance system. This Client Update aims to provide an overview of regulatory developments regarding the designation of WPRs and the granting of IPRs, including their implications for mining operators, local governments, and communities engaged in small-scale mining activities. Legal