Legal Consequences of Acquiring Company of Mining License Holder That Has Not Obtained Government Approval toward Mining License Transfer and Control

Abstract

The objectives of this research are 1) to find out the legal consequences of acquiring company of mining license holder that has not obtained government approval toward mining license transfer and control, 2) to find out the legal liabilities of company that acquires company of mining license holder. This legal research applies the method of normative juridical legal approach. The data analysis technique employs qualitative analysis. The results of this research revealed that the acquirer actually does not have any legal liability to the acquired party unless the acquirer is indeed proven to have committed bad faith during and after the acquisition process which could harm other parties including third parties. Thus, the acquirer can be held directly liable through the court or other ways. Meanwhile, the legal liability of the acquired party is that they must carry out an administrative process to the relevant agencies namely the Ministry of Energy and Mineral Resources, to fulfill the provisions referred to in Article 93 of the Mineral and Coal Law. The party that acquires the company of mining license holder has the same obligation as the acquired party. The acquirer must comply with the provisions in the form of obligations which are required to the mining license holder such as the provisions of Article 95 up to 112 of Mineral and Coal Law.