Regulation of the Minister of Energy and Mineral Resource of RI No. 12/2011 on procedures for specifying Mining Business Area and Regional Information System on Mineral and Coal Mining Area

Article 1 potentiality, and/or dominant geological informa- What is meant in this Regulation of the Minis- tion discovered in non-metal mineral mining com- ter by: modrtv. 1. Mining Area hereinafter referred to as WP, shall 6. Rocks Mining Business Area hereinafter referred be Mining Business Area hereinafter referred to as to as rocks WUP, shall be part of the WP already WUP, People Mining Area hereinafter referred to having available data, potentiality, and/or domi- as WPR, State Conservation Area hereinafter re- nant geological information discovered in rocks ferred to as WPN, Mining Business License here- mining commodity. inafter referred to as WIUP, Mining Business li- 7. Business License for Metal Mineral Mining Area cense hereinafter referred to as IUP, Mineral, Coal, shall include its derivative mineral hereinafter re- Business Entity, Exploration Feasibility Study, and ferred to as metal mineral WIUP, shall be part of Mining, shall be as referred to in Law Number 4 metal mineral WUP provlded to business enntv, Year 2009 concerning Mineral and Coal Mining. cooperatives and individual person through tender 2. Radioactive Mining Business Area hereinafter re- bid. ferred to as radioactive WUP, shall be part of the 8. Business License for Coal Mining Area, hereinaf- WP already having available data, potentiality, ter referred to as coal WIUP, shall be part of the and/or dominant geological information discov- coal WUP' provided to business entity, coopera- ered in radioactive mining commodity. tives and individual through tender bid. 3. Metal Mineral Mining Business Area hereinafter 9. Business License for Non-Metal Miner::!1 Mining referred to as metal mineral WUP, shall be part of Area hereinafter referred to as non-metal mineral BlJsiness News 8190·8191/12·7-2011 23 WIUP, shall be part of non-metal mineral WUP 15. Information System on Mining Area, hereinafter provided to business entity, cooperatives and in- referred to as WP information system, shall be dividual person by means of application_ any information system that is useful to solve 10. Business license for Rock Mining Area, hereinaf- problem and making decision on area matter. ter referred to as rock WIUP. shall be part of the 16. National Geodesy Data shall be reference prevail- rock WUP provided to business entity, coopera- ing in Indonesia to state position (coordinate) in tives and individual person by means of applica- conducting national survey and mapping. tion. 17. Minister shall be minister exercising administra- 11. Tender bid shall be method of offering WIUP or tive matters on mineral and coal mining. WIUPK in the context of granting Exploration IUP, 18. Director General shall be Director General whose Production Operation IUP, Exploration IUPK, and/ duty and responsibility are in mineral and coal or metal and coal Production Operation IUPK. mining sector. 12. Work Contract, hereinafter referred to as KK, shell be egreement between the Government of CHAPTER II the Republic of Indonesia and Indonesian legal en- PREPARATION OF MINING BUSINESS AREA tity in the context of Foreign Capital Investment Part One in operating mineral mining business, excluding General natural oil and gas, geothermal, radio active and Article 2 coal mining. (1) WP may consist of WUP covering: 13. Work Contract for Coal Mining Exploitation, here- a. radio active WUP; inafter referred to as PKP2B, shall be agreement b. metal mineral WUP; between the Government of the Republic of Indo- c. coal WUP; nesia and Indonesian legal entity in the context of d. nonmetal mineral WUP; and/or Domestic Capital Investment and/or Foreign Capi- e. rocks WUP. tal Investment for operating coal mineral mining. (21 The Minister shall determine radioactive WUP as 14. Data shall be all facts, guidelines, indications, and referred to in paragraph (1) letter a based on pro- information in writing (character), figure ldigital), posal of the agency administering administrative depiction or illustration, magnetic media, docu- affairs on nuclear matter. ment, coal sampling, fluid, and other forms ob- 13) The Minister shall determine metal mineral WUP tained from the result of research and study on and coal WUP as referred to in paragraph (11 let- mining, exploration, feasibility study, or mining. ter b and letter c after having coordination with 24 Business News 8190-8191/12-7-2011 the local Governor and Regent/Mayor and rele- b. non-metal mineral WUP and rock WUP exist- vant agency. ing in one (1) regency/municipality. (4) The metal mineral WUP or coal WUP referred to (7) If the Minister delegates authority to determine in paragraph (3) shall be decided by the Minister non-metal mineral WUP and rock WUP as referred after having complied with the criteria below: to in paragraph (6), the Governor shall determine a. has coal carrier rock formation and/or metal a WUP after having coordination with the Minister mineral carrier formation, including offshore and the local Regent/Mayor. area based on geological map; (8) The coordination referred to in paragraph (5) and b. has geological exposure for metal mineral and! paragraph (7) for equal perception relating to the or coal; criteria for WUP determination shall be as follows: c. has potential metal mineral and/or coal re- a. has geological exposure to non-metal mineral source; and/or rock; d. has one (1) or more types of metal mineral b. has potential non-metal mineral and/or rock re- and/or coal, including derivatives thereof; source; e. is not overlapping with WPR and/or WPN; c. has one (1) or more types of non-metal mineral f. is are that may be utilized for continous mining and/or rocks; activities; and d. is not overlapping with WPR and/or WPN; g. is mining allocated area according to space e. is area that may be utilized for continuous min- layout plan. ing activities; and (5) The Minister shall determine non-metal mineral f. is mining allocated zone according to space WUP and rock WUP as referred to in paragraph (1) letter d and letter e after having coordination layout plan. with the local Governor and Regent/Mayor and (9) The coordination with the relevant agency referred relevant agency. to in paragraph (31 and paragraph (51 relating to (6) The Minister may delegate authority to determine WUP as mining allocated zone in the space layout non-metal mineral WUP and rock WUP as referred 01 the national space layout structured based on to in paragraph (1) letter d and letter e to the the seven (7) islands or archipelago in accordance Governor in accordance with the provisions in the with the provisions in the statutory regulation on statutory regulation for: space layout. a. non-metal mineral WUP and rock WUP ex- isting across regency /municipality in one (1) Article 3 province; and the data and information resultinq from the BlIsinE!ss NE!ws 8190-8191/12-7-2011 25 research and study or exploration conducted by: WUP, metal mineral WUP, and coal WUP referred a. the Minister, Governor, or Regent/Mayor accord- to in Article 2 paragraph (1) letter a, letter b, and ing to their respective authority; or letter c , may overlap with non-metal mineral WUP b. assignment made by the State research institu- or rock WUP. tion of Regional research institution, there is dis- (2) If the Minister stipulates radioactive mineral WUP covered potential resource and mineral or coal re- referred to in Article 2 paragraph (2) overlaps serve that draw the interest of the market on the with the holder of metal mineral WIUP, non-metal WP other than the WUP that has been decided as mineral WIUP, rock WIUP and/or coal WIUP, the referred to in Article 2 paragraph (3l, paragraph agency implementing administration affairs on (5), and paragraph (7), then the Minister may nuclear power must coordinate with the holder decide a new WUP baru. of metal mineral WIUP, non-metal mineral WIUP, rock WIUP and/or coal WI UP.

Article 4 (31 The coordination referred to in paragraph (2) is in (1) In one (1) metal mineral WUP or coal WUP one (I) the context of preparing cooperation agreement or more WIUPs may be determined. for wrup exploitation that overlaps with the prin- (2) The metal mineral WIUP referred to in paragraph ciples of mutual benefit. (1) is one (1) prime metal mineral mining com- (4) The agency implementing administration affairs modity, including its derrivative , on nuclear power shall be obliged to submit ap- (3) The mineral derivative referred to in paragraph (2) plication for assignment to the Minister in the is other metal mineral mining commodity associ- context of determining radioactive mineral WIUP ated with the prime metal mineral. and r:ooperation agreemp.nt of overlapping WIUP exploitation referred to in paragraph (3).

Article 5 (1) In one (1) non-metal mineral WUP or rock WUP one (1) or more WIUPs may be determined. Article 7 (2) The WIUP referred to in paragraph (1) constitutes If non-metal mineral WUP or rock WUP over- one (1) non-metal mineral or rock mining com- I laps with metal mineral WUP or coal WUP referred modity. I to in Article 6, then the condition to obtain priority right or primary right to exploit metal mineral and coal

Article 6 within non-metal mineral WIUP or rock WIUP does (1) The Minister is determining radioactive mineral not apply. 26 Busines. New. R190·RI91/ 12-7-701 1 OVERNMENT REGULATIONS ,t·"!',,J'll;!fd'.;:Hc,*~.*11j'1IJ;;;~,.~i

Article 8 referred to in paragraph (1) shall be based on the (1) If within part of the stipulated WP there is an data such as: area that is not prospective yet to be developed a. result of mining research and study activities as metal mineral WUP or coal WUP, the Minister in the context of stipulating WP; may decide such area as non-metal mineral WUP b. exploration within the WP; or rock WUP. c. result of evaluation of metal mineral WIUP or (21 If within the location of non-metal mineral WUP or coal WIUP bernq relinquished by the holder of rock WUP referred to in paragraph (1) there exists IUP; class of metal mineral or coal mining commodity d. result of evaluation of KK area or PKP2B area that is prospective to be developed, the Minister that has been relinquished based on the provi- may determine it as metal mineral WUP or coal sions in the statutory regulation; WUP after having coordination with the Governor e. result of evaluation of metal minral WIUP of and Regent/Mayor according to their respective coal WIUP which IUP has expired; and/or authority. f. result of evaluation of KK area and/or PKP2B (3) If within the location of non-metal mineral WIUP area which contract or agreement has expired. or rock WIUP reterred to rn paragraph (2) there exists class of metal mineral or coal mining com- Article 10 modity that is prospective to be developed, the (1) The Governor or Regent/Mayor based on their re- requirement to submit application for priority right spective authority may submit application for pro- or primary right for exploitation of metal mineral posal to stipulate metal mineral WUP or coal WUP or coal mining does not apply. that overlaps with non-metal mineral WUP or rock WUP as referred to in Article 8 paragraph (2) to Part Two the Mini~ter based on proposal from business en- Preparation for Metal Mineral WIUP and Coal WIUP tity, cooperatives and individual person as holder Ar ucle 9 of non-metal mineral WIUP or rock WIUP. ~ 1) The Director General shall prepare metal mineral ~2) If the holder of non-metal mineral WIUP or rock WIUP or coal WIUP within the WUP that has been mineral WIUP wishes to exploit metal mineral or stipulated as referred to in Article 2 paragraph (31 coal referred to in paragraph (1), the holder shall to be offered by tender bid to business entity, be obliged to apply to be tender bid participant for cooperatives and individual person. metal mineral WIUP or coal WIUP in accordance ~2) Preparation of metal mineral WIUP or coal WIUP with the provisions in the statutory regulation. Business News B190·B191/1ZIZ011 27 GOVERNMENT REGULATIONS

Article 11 ogy nepartment and Head of Energy and Mineral (1) Preparation of metal mineral WIUP or coal WIUP Resource Data and Information Center supported referred to in Article 9 paragraph (2) letter a and by the surnrnarv of qeosctenttnca! and mapping letter b must be structured based on the data and data. information resulting from the research and study on mining and/or exploration conducted by: Article 12 a. the Minister; (1) The preparation of WIUP in the context of WIUP b. the Governor; offer by tender bid as referred to in Article 9 shall c. the Regent/Mayor; and/or be conducted by the Director General by means d. State-owned institution and regional research of technical and economical evaluation. institution by means of assignment for con- (2) For implementation of technical and economical ducting research and study on mining, accord- I evaluation as referred to in paragraph [1), the ing to the provisionsin the statutory regula- Director General may establish a team for WIUP tiori, preparation. (2) Metal mineral WIUP or coal WIUP from relin- (3l Members of the WIUP preparation Team referred quished WJUP or WIUP that has expired as re- to in paragraph (2l comprise representatives of: ferred to in Article 9 paragraph (2) letter c through a. the DIrectorate General of Mineral and Coal; letter f must be compiled based on the data and b. Geology Department; information resulting from exploration, feasibility c. Energy and Mineral Resource!': Research and study, and/or mining conducted by: Development Agency; a. the IUP holder; d. the Secreteriat General of the Ministry of En- b. the KK Contractor; and/or ergy and Mineral Resources; c the PKP2B Contractor. e. the relevant agency; and (3) The data and information resulting from research f. the local provincial government and/or regen- and stucv of mining and/or exploration referred cy /municipality government. to in paragraph (1l and information resulting from (4) The WIUP preparation Team referred to in para- exploration, feasibility study, and/or mining re- graph (3) shall report the result technical and eco- ferred to in paragraph (2l and proposal from the nomical evaluation to the Director General. Governor or Regent/Mayor as referred to in Ar- ticle 10 must be submitted to the Minister C.Q. Article 13 Director General with copy to the Head of Geol- (1) Based on the result of technical and economical 28 Busine« Npw< 8190.8191//2·7·2011 evaluation referred to in Article 12, the Director tent of a certain WIUP deemd potentially contains General shall prepare proposed plan for determin- metal mineral and/or coal in the WIUP. ing WIUP specifying: a. the location; Article 14 b. the extent and borders of WIUP using WUP Based on the result of coordination referred to geo-reference; in Article 13 paragraph (41 propoposal shall be sub- c. the quality of WIUP data; mitted to the Minister on the determination of WI UP d. the compensation price of WIUP data and supported by: information or the total cost for investment a. coordinates of the WI UP compiled as specified in compensation according to the provisions in Attachment I to this Regulation of the Minister; the statutory requlation: and and e" land lise. b. map of WIUP as illustrated in the format specified (2) The extent and borders of WIUP referred to in in Attachment II to this Regulation of the Minis- paraqraph (1) letter b mus t comply with the crite- ter. ria below: a. geographical location; b. rule of conservation; CHAPTER III c. environmental supporting power; INFORMATION SYSTEM ON MINING AREA d. optimization of mineral and/or coal resources; Article 15 and (1) WP information system is meant for standardiza- e. level of population density. tion, such as: (3) Environmental supporting power referred to in a. coordinates system; paragraph (2) letter c based on study on living b. basic map issued by the Government agency environment based on the provisions in the statu- carrying out administration affairs in national tory regulation on living environment protection survey and mapping; and and management. c. map of WP, WUP, WPR, WPN, or WIUP of (4) Proposed WIUP determination plan referred to in radioactive mineral, metal mineral, non-metal paragraph (1) shall be coordinated by the Direc- mineral, rocks, and coal. tor General with the relevant agency, the local (2) WP information system referred to in paragraph Governor, and Regent/Mayor pertaining to the de- (11 must be established applying universal geo- termination plan on borders, coordinates. and ex- graphical information system. Business News 8190·8191112·72011 29 GOYERNMEtH REGULAnONS

Article 16 WIUP STIPULATION (1) WI UP mapping coordinate system shall use Na- Article 17 tiorial Geodesy Data having the parameter equiv- (1) The Minister shall stipulate metal mineral WIUP alent with the Ellipsoid World Geodetic System and coal WIUP for offering to business entity, co- parameter. operatives, and individual person based on pro- (2) WUP, WPR, WPN, or WIUP are illustrated in situ- posal of the Director General referred to in Article ation map using A3 size plain paper scale and in 14. the form of closed polygon bordered by lines par- (2) The Minister may reject the stipulated metal min- allel to horizontal line and vertical line with mini- eral WIUP or coal WIUP proposed by the Governor mum multiplication of one-tenth (0,1") seond and or Regent/Mayor referred to in Article 10 based using coordinates system referred to in paragraph on the result of technical and economical evalua- (lL tinn conduntart by the Diractor General. (3) The WUP, WPR, WPN, or WIUP maps referred to in paragrdph (2). must specify the following; Article 18 a. the borders, coordinates, and extent; (1) The Minister, Governor, or Regent/Mayor based b. code of WUP, WPR, WPN, or WJUP; on their respective authority shall issue map of c. administrative border; non-metal mineral WIUP or rock WIUP based on d. status of land use; application of the business entity, cooperatives, e. data of the map, such as line scale, source of and individual person that have complied with the map, and map location; and requirements of the provisions in the statutory f. approval of WUP, WPR, WPN, or WIUP maps. regulation. (4) Approval of the maps referred to in paragraph (3) (2) The Governor, or Regent/Mayor based on their letter f must be signed by the official appointed rospcotive authority prior to issuing map of non- by the Minister, Governor, or Regent/Mayor ac- metal mineral WIUP or rock WIUP referred to in cording to their respective authority. paragraph (1), must coordinate with the Minister (5) The code referred to in paragraph (3) letter b shall if: be structured according to the guideline specified a. it overlaps with metal mineral WIUP and/or in Attachment III to this Regulation of the Minis- coal WIUP that has been stipulated by the ter. Minister for tender bid; b. it overlaps with non-metal mineral WIUP andf CHAPTER IV or coal WIUP that has been granted to the 30 )I~':I;~,~~~,.~,~f'.~':#4i!i '.11;~~:~!I~#.!'''~''''f!' GOVERNMENT REGULATIONS #l·,,~'r.~I1'·::;q~1! holder of metal mineral or coal IUP; Article 20 c. it is located within non-metal mineral WUP or (1) The holder of metal mineral WIUP that first ob- rock WUP that overlaps with radioactive min- tained priority in obtaining in obtaining WIUP for erai WUP. metal mineral WUP. and/or coal other class of metal mineral mining commodity WUP. as referred to in Article 1 ~ par::tgraph (1) without tender bid and is obliged to establish new busi-

Article 19 ness entity in accordance with the provisions in (1) If within the metal mineral WIUP location that has the statutory regulation. been stipulated in the initial WIUP as referred to (2) WIUP for different mining commodity as referred in Article 17 there is found other metal mineral to in Article 19 paragraph (2) shall be granted to mining commodity, the Minister shall decide new the first holder of WIUP without tender bid and is WIUP for the other metal mineral mining com- obliged to establish new business entity in accor- modity. dance with the provisions in the statutory regula- (2) If within the metal mineral WIUP nr coal WIUP tion , location duly stipulated in any initial WIUP there (3) To obtain WIUP for metal mineral or WIUP for is found di fferel1t class of mininy cummudity, the coal referred to in Article 19 paragraph (3) the Minister shall decide a new WIUP for such class first holder of WIUP must apply as tender bid par- of mining commodity in a new WUP. ticipant in accordance with the provisions in the (3) The metal mineral WIUP or coal WIUP referred to statutory regulation. in Article 17 paragraph (1) that overlaps non- (4) To obtain non-metal mineral WIUP or rock WIUP metal mineral WIUP or rock WIUP shall be deter- referred to in Article 19 paragraph (4) business mined by the Minister after having coordination entity, cooperatives, and individual person shall with the local Governor and Regent/Mavor. be obliged to submit application for area to the (4) If within the metal mineral WIUP or coal WIUP Minister, Governor or Regent/Mayor according to there is found non-metal mineral mining eommod their respective authority. ity or rock mining commodity that draw the atten- tion of the business entity, cooperatives, and indi- CHAP'IEK V vidual, then non-metal mineral WIUP and/or rock CLOSING PROVISION WIUP shall be stipulated by the Governor or Re- Article 21 gent/Mayor according to their respective author- By the time this Regulation of the Minister ity after having coordination with the Minister. takes effect, Decision ot the Minister of Energy and Business News 8190-8191f12·7-2011 31 Mineral Resource Number 1603 K/40/MEM/2003, Stipulated in Jakarta dated December 24, 2003 concerning Guideline for On August 11, 2011 Preservation of Mining Area and Decision of the Min- MINISTER OF ENERGY AND MINERAL RESOURCE ister of Energy and Mineral Resources Number 1614 OF THE REPUBLIC OF INDONESIA, Year 2004, dated October 18, 2004 concrninq Guide- sgd. line for Processing Application for Work Contract and DARWIN ZAHEDY SALEH Work Agreement for CO::l1 Mining Fxploitation in the context of Foreign Capital Investment is hereby re- Enacted in Jakarta voked and delared null and void. On AuguSt 11, 2011 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,

Article 22 sgd. This Regulation of the Minister takes effect PA TRIALIS AKBAR on the date it is stipulated. STATE GAZETTE OF THE REPUBLIC OF INDONESIA For puhlic cogni7ance, this Regulation of the YEAR 2011 NUMBER 487 Minister shall be announced by placing it in the State Gazette of the SUite uf the RepUblic of lndonesla. ( MAl 32 Business News 8190·8191112-7-2011