Indonesia

The Constitution of Indonesia provides that the country’s natural resources are controlled by the State. The Indonesian Mining Law is Law No. 4 of 2009 on Mineral and Coal Mining, as amended by Law No. 3 of 2020. The central government, through the Ministry of Energy and Mineral Resources (MEMR) is responsible for formulating and implementing policies and regulations on mineral resources. The Mining Law authorizes MEMR to formulate cooperation, partnership, and community empowerment policies to provide social and environmental benefits. Several other regulations provide further guidelines on Community Development relative to mining projects covering, among others, education, health, socio-economic and cultural factors, opportunities for local participation, the establishment of community institutions, and infrastructure development. Community Development Agreements (CDAs) are not legally required in mining projects, but they are a common practice that may stem from mining companies’ mandatory corporate social responsibility activities or from consultations with concerned communities.