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

Danang Muhammad Zawahirul Fahmi, Sukanda Husin, Rembrandt Rembrandt

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.


Keywords


Law; Acquisition; Company; Mining Business

Full Text:

PDF

References


Books

Abdulkadir Muhammad, Law and Legal Research, PT Citra Aditya, Bandung, 2004, page 132

Ahmad Redi, 2017, Law on the Settlement of Mineral and Coal Mining Disputes, Grafika Offset, Jakarta, page 26

Camelia Malik, “Legal Certainty Insurance in Investment Activities in Indonesia”, article on the Business Law Journal, (July-September 2007), page 16

Guidelines for Writing Research Proposal and Thesis, Graduate Program in Notary at Andalas University, Padang, 2012, page 7.

Hilman Hadikusuma, Method of Making Paper or Legal Thesis, Mandar Maju, Bandung, 1995, page 99.

Philipus M. Hadjon et al, Introduction to Indonesian Administrative Law, 9th print, Gajah Mada University Press, Yogyakarta, 2005, page 47.

Rachmadi Usman, Material Law, Sinar Grafika, Jakarta, 2011, page 49.

Ridwan Khairandy, 2015, Freedom of Contracting & Pacta Sunt Servanda Versus Good Etiquette: Attitudes that Must Be Taken by the Court, FHUIIPress, Yogyakarta, page 38.

Ronny Hanitijo Soemitro, Legal Research Method and Jurimetry, Ghalamania Indonesia, Jakarta, 1990, page 10

Soerjono Soekanto, Introduction to Legal Research, UI-Pres, Jakarta, 1982, page 52

Legislation

- 1945 Constitution of the Republic of Indonesia

- Law No. 5 of 1960 concerning Basic Agrarian Principles

- Law of the Republic of Indonesia No. 4 of 2009 concerning Mineral and Coal Mining

- Law No. 40 of 2007 concerning Limited Liability Companies.

- Law No. 5 of 1960 concerning Basic Regulations on Agrarian Principles Article 2 paragraph (2) explaining that State control rights authorize to: a. regulate and administer the designation, use, supply and maintenance of the earth, water and space; b. determine and regulate legal relations between people and earth, water and space; c. determine and regulate the legal relationships of people and legal actions concerning the earth, water and space.

- Indonesia, Law of the Republic of Indonesia No. 4 of 2009 concerning Mineral and Coal Mining, in reviewing the letter “a”.

- Article 1338 of Civil Code: “All agreements are made in accordance with the applicable Law as a Law for those who make it. The agreement is irrevocable other than by agreement of both parties or for reasons determined by the Law. Approval must be carried out in good faith. (Civil Code 751, 1066, 1243 etc., 1266 etc., 1335 etc., 1363, 1603, 1611, 1646-3?, 1688, 1813.).”

- Article 51 of the Mineral and Coal Law.




DOI: http://dx.doi.org/10.18415/ijmmu.v6i3.908

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 International Journal of Multicultural and Multireligious Understanding

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

International Journal of Multicultural and Multireligious Understanding (IJMMU) ISSN 2364-5369
https://ijmmu.com
[email protected]
dx.doi.org/10.18415/ijmmu
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.