Who has title to metallic minerals in the ground?
Under article 33 of the constitution of the Republic of Indonesia, 1945, natural resources (ie, land, water and natural riches contained therein) are to be ‘controlled’ by the state and made use of for the people. As a result, the state (ie, the government of the Republic of Indonesia) is deemed to have title to minerals in the ground and to mined and processed minerals and metals. Parties granted mining rights under the Mining Law are in effect ‘contractors’ of the government and do not by virtue of holding mining rights acquire title to minerals in the ground. Parties holding mining rights for exploitation, transport and sale under KPs or COWs are granted the exclusive right to sell and export mined minerals and retain the proceeds of sale (assuming royalties and other payments to the government are made in a timely manner). Title is acquired by a purchaser from the government in accordance with agreements for sale and purchase between the purchaser and the KP holder or the COW contr
