Key Updates in MEMR Regulation No. 6 of 2025 on Domestic Metal Mineral Refining Facilities
Authors
The Indonesian government has introduced an update to the regulatory framework governing domestic metal mineral refining facilities. On 4 March 2025, the Minister of Energy and Mineral Resources (“MEMR”) enacted MEMR Regulation No. 6 of 2025 concerning the Completion of the Construction of Domestic Metal Mineral Refining Facilities (“MEMR Reg 6/2025”), amending MEMR Regulation No. 6 of 2024 concerning the Completion of the Construction of Domestic Metal Mineral Refining Facilities (“MEMR Reg 6/2024”).
This new regulation addresses a critical gap by providing clearer provisions for Mining Business License (“IUP”) and Special Mining Business License (“IUPK”) holders in the Production Operation stage who are facing operational delays due to force majeure. The amendment allows for additional time and necessary adjustments to complete refining facilities that have been disrupted by unforeseen circumstances.
In this ARMA Update, we break down the key changes introduced in MEMR Reg 6/2025 and how they improve and refine the previous framework, ensuring greater flexibility and regulatory clarity for stakeholders in the mining industry.
Adjustment of Scope of Regulation
MEMR Reg 6/2025 expands the scope of the regulation, which was previously limited to overseeing the completion of domestic metal mineral refining facilities by holders of IUP or IUPK in the production phase for copper, iron, lead, or zinc commodities that have entered the commissioning stage. MEMR Reg 6/2025 includes provisions allowing IUPK holders in the production phase for copper commodities, who have completed the construction of refining facilities but are unable to operate due to force majeure, to sell a limited quantity of processed minerals abroad within a specified timeframe while their facilities undergo necessary repairs. [1]
Clarified Force-Majeure Events
MEMR Reg 6/2025 establishes new criteria for obtaining export permits for refined mineral products, particularly for IUPK holders in the production phase affected by force majeure. [2] During the repair period due to force majeure, holders of IUPK in the production phase for metallic minerals may sell their processed mineral products abroad, subject to the following considerations: [3]
- Ensuring the sufficiency of raw material supply for domestic needs;
- Preventing the cessation of mining operations;
- Avoiding employment termination;
- Optimizing state and regional revenue; and
- Ensuring that the repair of refining facilities can be completed within a specified timeframe.
Additional Licensing and Mechanism Provisions
To secure export approval from the Ministry of Trade, [4] these license holders must first obtain a recommendation from the MEMR. [5] The recommendation is granted only once during the facility repair period due to force majeure and is valid for a maximum of 6 (six) months from the date of issuance. [6] Upon evaluation, the recommendation may be extended for an additional 3 (three) months if deemed necessary. [7]
To obtain the licensing provisions as mentioned above, holders of IUPK in the production phase for copper commodities who have completed the construction of refining facilities but are unable to operate due to force majeure and require repairs must submit a recommendation request to the Minister, which must include at least: [8]
- A verification report from an Independent Verifier confirming the completion of the physical construction of the domestic refining facility, stating that the facility is operational, along with a declaration from the Independent Verifier confirming the facility’s operational status;
- A statement letter from the IUPK holder declaring that a force majeure event has occurred, preventing the operation of the completed refining facility;
- Supporting documents from relevant authorities or stakeholders confirming the occurrence of the force majeure event as stated in point (b);
- A plan for completing the necessary repairs to thAe refining facility due to force majeure;
- An approved Work Plan and Budget (RKAB); and
- The latest reserve estimation report.
Additional Reporting Requirements to the MEMR
MEMR Reg 6/2024 previously governs that IUP and IUPK holders were required to submit progress reports on the physical development of refining facilities, verified by an independent verifier, to the MEMR. [9] In MEMR Reg 6/2025, now also requires IUP and IUPK holders who have completed the construction of refining facilities but are unable to operate due to force majeure to submit a report on the completion of the necessary repairs. [10] These report must be submitted within 15 (fifteen) working days of the end of the relevant calendar month. [11]
Enhanced Ministerial Supervision
The MEMR is granted broader supervisory authority to monitor the implementation of mineral exports under the new provisions and the progress of repair efforts on non-operational refining facilities affected by force majeure. [12] The supervision measures include administrative verification, field inspections, and compliance assessments. Inspections on mineral exports may be conducted at any time, while inspections related to facility repairs will be carried out regularly every 2 (two) months or as needed. [13]
Article 2A of MEMR Reg 6/2025. ↩︎
Article 2A of MEMR Reg 6/2025. ↩︎
Article 6A paragraph 3 of MEMR Reg 6/2025. ↩︎
Article 6B Paragraph 1 of MEMR Reg 6/2025. ↩︎
Article 6B Paragraph 2 of MEMR Reg 6/2025. ↩︎
Article 6B Paragraph 3 of MEMR Reg 6/2025. ↩︎
Article 6B Paragraph 5 of MEMR Reg 6/2025. ↩︎
Article 6C Paragraph 1 of MEMR Reg 6/2025. ↩︎
Article 9 of MEMR Reg 6/2024. ↩︎
Article 9A of MEMR Reg 6/2025. ↩︎
Article 9A of MEMR Reg 6/2025. ↩︎
Article 10A of MEMR Reg 6/2025. ↩︎
Article 10A of MEMR Reg 6/2025. ↩︎
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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