Consultancy on the Legal and Regulatory Considerations for a Business Case of Red Mud Management and Utilization in Indonesia

The International Institute for Sustainable Development (IISD) is a globally recognized think tank with more than 30 years of experience working to solve today's greatest sustainable development challenges. We combine deep expertise across critical policy areas with a collaborative approach to research, advice, and hands-on support that delivers real-world results. Headquartered in Winnipeg, Manitoba, we are a diverse team of over 300 experts working from offices in Canada and Switzerland as well as other locations around the world.

1. Background

Indonesia’s continued push for domestic mineral processing and downstream industrial development has led to the expansion of alumina refining capacity. This is generating increasing volumes of red mud, a high-volume industrial residue from alumina production that poses environmental, operational, technical, economic, and legal challenges. Red mud may also contain recoverable minerals and could offer potential value if feasible management and utilization pathways can be identified.

The overall assignment will develop a business case for red mud management and utilization in Indonesia. The study will assess the current context, management challenges, sustainable tailings management considerations, legal and regulatory issues, economic and commercial feasibility, and practical implementation options. The final business case is expected to support decision making by the Ministry of Energy and Mineral Resources and other relevant stakeholders.

Within the business case, Chapter 5 will focus on legal and regulatory considerations. This chapter will clarify how Indonesia’s current legal and regulatory framework affects the handling, storage, transport, testing, treatment, utilization, valorization, and site-level management of red mud. It will identify regulatory constraints, opportunities, clarification needs, and practical policy implications to develop a stronger evidence base for policy-makers and regulators to formulate policies and regulations on bauxite value addition, hazardous waste management from refining industry, utilization of valuable minerals, and on the broader scope of industrial development planning and investment and responsible mining and processing. The International Institute for Sustainable Development (IISD) intends to engage a legal and regulatory consultant to prepare this chapter in close coordination with IISD, the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), Testing Center for Mineral and Coal (TekMIRA), Yayasan Corong Reformasi Ekonomi Indonesia (CORE Indonesia), the British Embassy Jakarta, and relevant Indonesian stakeholders.

2. Purpose of the Consultancy 

The purpose of this consultancy is to conduct research and write a chapter on the legal and regulatory considerations for the business case on red mud management and utilization in Indonesia. To achieve this objective, the consultant will engage closely and consult with relevant stakeholders, particularly the Ministry of Energy and Mineral Resources and the Ministry of Environment.

The chapter should provide a practical, implementation-oriented analysis of the legal and regulatory framework relevant to red mud management and utilization. It should help determine whether and how current laws, regulations, institutional mandates, permitting requirements, waste classifications, environmental obligations, and policy frameworks may enable or constrain red mud management, reprocessing, valorization, and utilization pathways.

The chapter should provide a clear assessment of the current regulatory baseline, identify key gaps and areas of uncertainty, and recommend practical areas for clarification, policy guidance, institutional coordination, and, where necessary, the development of new regulations. It should also analyze the potential impacts and implications of any proposed new regulations.

3. Objectives

The consultant will

• review the main Indonesian legal and regulatory provisions relevant to red mud management and utilization;
• assess how existing rules apply to red mud handling, storage, transport, testing, treatment, reprocessing, utilization, and site-level management;
• identify legal and regulatory issues that may affect the feasibility of red mud valorization and utilization options;
• assess relevant institutional roles and coordination needs across ministries, regulators, technical agencies, and subnational authorities;
• identify areas where legal clarification, regulatory guidance, policy direction, or institutional coordination may be needed;
• compare the implications of the current regulatory baseline with possible improved regulatory or policy approaches; and
• provide practical recommendations for inclusion in the overall business case and implementation roadmap.

4. Key Questions to Address

The consultant should ensure that the chapter answers the following questions:

• What laws, regulations, standards, and policy instruments are most relevant to red mud management and utilization in Indonesia?
• How is red mud currently classified or treated under the applicable legal and regulatory framework?
• What legal obligations apply to red mud handling, storage, transport, testing, treatment, and site-level management?
• How are potential additional requirements and consequences assessed when new regulations are considered necessary?
• What approvals, permits, licences, certifications, or reporting requirements may apply to red mud utilization or valorization?
• What legal or regulatory barriers may affect the feasibility of different red mud management and utilization pathways?
• What regulatory risks or liabilities may affect government, alumina operators, investors, processors, users of red mud–derived products, and local communities?
• Which institutions have mandates relevant to red mud management, environmental control, industrial development, mineral processing, and utilization?
• Where are there gaps, overlaps, ambiguities, or coordination challenges in the existing framework?
• What legal clarifications or policy guidance would help support responsible implementation?
• What practical regulatory or policy options could be considered to enable responsible red mud management and utilization while safeguarding environmental and social outcomes?
• How are potential additional requirements and consequences assessed when new regulations are considered necessary?

 5. Methodology

The consultant is expected to use an evidence-based and practical methodology, including the following:

• Desk review of relevant Indonesian laws, regulations, policy documents, government guidance, standards, and secondary literature.
• Targeted stakeholder consultations, as agreed with IISD, which may include discussions with relevant officials, technical experts, legal experts, industry representatives, and institutions involved in red mud management or mineral processing.
• Coordination with the wider study team, including IISD, IGF, TEKMIRA, and CORE Indonesia, to ensure the legal analysis is aligned with technical, economic, environmental, and operational findings.
• Validation of findings, including incorporation of feedback from IISD and relevant stakeholders.
• Practical synthesis, focused on implications for the business case, implementation conditions, and recommended next steps.

6. Deliverables

Please review the full Terms of Reference_Consultant on the Legal and Regulatory Consideration, with attention to the deliverables (indicative timeline).

7. Coordination and Reporting

The consultant will report to IISD’s project lead and work closely with IISD and IGF experts responsible for the business case.

The consultant is expected to coordinate with

• the IISD project team,
• IGF legal and policy experts,
• TEKMIRA technical experts,
• CORE Indonesia, particularly where legal issues affect economic or investment feasibility,
• the British Embassy Jakarta, where requested by IISD,
• relevant Indonesian government stakeholders, subject to agreed consultation protocols, and
• other experts or institutions identified during the assignment.

The consultant should participate in coordination meetings, contribute to internal review discussions, and respond to reasonable requests for clarification or revision.

8. Required Qualifications

The consultant should have the following qualifications:

• advanced degree in law, environmental law, natural resources law, mining law, energy law, public policy, or a related field;
• demonstrated knowledge of Indonesian legal and regulatory frameworks relevant to mining, mineral processing, environmental management, industrial waste, hazardous waste, or circular economy;
• experience in legal and regulatory analysis, including regulatory impact analysis related to natural resources, extractive industries, industrial residues, environmental permitting, or waste utilization;
• familiarity with Indonesian institutional arrangements related to mining, environment, industry, investment, and local government;
• ability to translate complex legal issues into practical policy and implementation implications;
• strong analytical and drafting skills in English and Bahasa Indonesia language skills;
• ability to work collaboratively with technical, economic, environmental, and policy experts; and
• prior experience working with government, international organizations, research institutions, or donor-funded policy projects would be an asset.

Knowledge of red mud, alumina refining, tailings management, industrial by-product utilization, or critical minerals policy would be a strong advantage.

9. Confidentiality and Use of Information

The consultant may not share draft outputs, stakeholder inputs, institutional positions, or internal project materials outside the assignment team without prior authorization. All outputs prepared under this assignment will be submitted to IISD and may be used, adapted, or incorporated into the final business case and related project outputs.

10. Proposal Requirements 

Interested consultants should provide the following:

• a short technical proposal outlining understanding of the assignment and proposed approach;
• a curriculum vitae; and
• a financial proposal with a daily rate and expected level of effort (in days).

11. Evaluation Criteria

Proposals may be assessed based on

• relevant legal and regulatory expertise;
• knowledge of Indonesian mining, environmental, industrial waste, and mineral processing frameworks;
• demonstrated ability to produce practical, policy-oriented legal analysis;
• relevant experience with government, international organizations, or technical studies;
• quality and clarity of the proposed approach;
• availability and ability to work within the project timeline; and
• cost-effectiveness

12. Indicative Chapter Structure 

The chapter will be written in English and should be approximately 5–7 pages, excluding references or annexed legal tables, unless otherwise agreed with IISD. An indicative chapter structure could be as following:

Chapter 5. Legal and Regulatory Considerations

• 5.1 Evaluation of legal and regulatory provisions on the handling, storage, transport, testing, utilization, and site-level management of red mud
  This section should identify the main applicable legal and regulatory provisions and explain how they apply to red mud management.
• 5.2 Legal and regulatory issues affecting the feasibility of red mud valorization and utilization
  This section should assess the implications of the legal framework for management and utilization pathways, including classification, approvals, liability, compliance costs, and investment risks.
• 5.3 Legal clarification, institutional coordination, and policy guidance to support implementation
  This section should identify priority areas where clarification, coordination, guidance, or policy support may be needed to enable responsible implementation.
• 5.4 Comparison of implications of current baseline and proposed regulatory approaches
  This section should compare the current situation with practical options for improved regulatory or policy approaches and highlight their implications for implementation.

Application Process

Application deadline: October 19, 2026 4PM CST 

NOTE: 

• All applications must be submitted in English. 
• Incomplete and late proposals will be automatically disqualified.