INTRODUCTION

Mining companies in Indonesia that rely on their subsidiaries or affiliated entities to perform mining services may need to reconsider their existing operational structures.

On 18 September 2026, the Minister of Energy and Mineral Resources (“MEMR”) issued Decree No. 365.K/MB.01/MEM.B/2026 on Technical Guidelines for the Approval of the Use of Subsidiaries and/or Affiliates in Mineral and Coal Mining Services Businesses (“Decree 365/2026”). The regulation took effect on the same date and revoked Director General Regulation No. 376.K/30/DJB/2010 (“2010 DG Regulation”).

The new regulation introduces a more restrictive framework for mining companies seeking to appoint their own subsidiaries or affiliated companies as mining services contractors. Importantly, the definition of an affiliate now extends to companies sharing common ultimate beneficial owners, while regulatory approval is limited to specific government-assigned activities.

For mining groups with established intra-group service arrangements, these changes may have significant implications for corporate structuring, procurement, contractual arrangements, and business continuity.

Conclusion

Decree 365/2026 fundamentally changes the regulatory approach to the use of affiliated mining services companies in Indonesia.

By extending affiliate classification to common beneficial ownership and restricting approval to specific government assignments, the regulation may significantly affect how mining groups structure and procure their mining services.

The absence of transitional provisions adds another layer of uncertainty for companies with existing arrangements.

Mining companies should therefore take a proactive approach by reviewing their corporate ownership structures, existing contracts, and operational arrangements rather than waiting for regulatory clarification or enforcement.

Understanding the new rules is only the first step. Ensuring that your mining services structure remains legally compliant and commercially sustainable is what matters.

For further information or legal assistance regarding Decree 365/2026, please contact Pasaka Rievan Smith – Counsellors at Law

Regards, 

Pasaka Rievan Smith
Counsellors at Law

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INTRODUCTION

Indonesia's personal data protection ("PDP") regime has entered its operational phase. On 16 July 2026, the Government issued Government Regulation No. 33 of 2026 on the Implementation of the Personal Data Protection Law ("PP 33/2026"), setting out how the obligations under Law No. 27 of 2022 ("PDP Law") are to be applied in practice.

Businesses have been subject to the PDP Law's broad principles for some time, but with limited guidance on what compliance actually looks like. PP 33/2026 fills much of that gap. Once it takes effect on 16 January 2027, the question will no longer be whether a business has a privacy policy, but whether it can demonstrate to the regulator, customers and transaction counterparties that its day-to-day practices comply.

This article outlines the key changes introduced by PP 33/2026 and the priorities businesses should address before the deadline.

CONCLUSION

PP 33/2026 marks a clear shift in Indonesia's PDP framework, from having documents in place to being able to demonstrate compliance. Records of processing, DPIAs, transfer assessments, data processing agreements and a working breach response plan will increasingly be expected as evidence, with administrative fines of up to 2% of annual revenue or receipts for non-compliance.

Regards, 

Pasaka Rievan Smith
Counsellors at Law

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INTRODUCTION 

Artificial intelligence ("AI") has rapidly become a foundation of today's digital economy, driving unprecedented demand for computing power. Meeting this demand requires more than advanced software; it depends on robust physical infrastructure, including AI data centers supported by reliable power, suitable land, and advanced computing equipment.

As established data center hubs such as Northern Virginia in the United States and the FLAPD markets (Frankfurt, London, Amsterdam, Paris, and Dublin) face mounting constraints on land availability, power capacity, and grid connectivity, global investors are expanding their search for new locations capable of supporting large-scale AI infrastructure. The race is no longer about identifying opportunities; it is about securing critical resources before they become difficult to obtain. Amidst these conditions, Indonesia has emerged as a compelling destination, offering the competitive advantages needed to enable sustained digital infrastructure investment.

This article explores why Indonesia is emerging as a regional AI data center hub, the legal and regulatory considerations investors should address, and how strategic legal planning can support successful execution.

Regards, 
Pasaka Rievan Smith
Counsellors at Law 

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