Under Indonesian mining law, specifically Law No. 4 of 2009 on Mineral and Coal Mining ("Mining Law"), the sub-leasing of an IUP (Izin Usaha Pertambangan or Mining Business License) is generally not permitted. The Mining Law stipulates that the IUP is granted to a specific individual or entity for the purpose of conducting mining activities in a designated area.
According to Article 102 of the Mining Law, the IUP can only be transferred or assigned to another party through a change of ownership or control of the permit holder. This means that the IUP can be transferred to another party through a sale, merger, acquisition, or other forms of legal transfer that result in a change in the ownership or control of the permit holder.
However, sub-leasing, which involves granting mining rights to a third party while the original permit holder maintains ownership and control, is not specifically allowed under the Mining Law. The law aims to ensure that the government maintains oversight and control over mining activities, and as such, sub-leasing is generally not permitted.