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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