Regulation of the Minister of Energy and Mineral Resources No. 28/2013 on Procedures for the Auction of Mining Business License Area and Special Mining Business License Area in Metal-Mineral and Coal Mining Business Activities

Article 2 (1) WIUP of metal minerals and WIUP of coal shall be (2) The coordination as meant in paragraph (1) shall stipulated by the minister following the stipulation be executed in the framework of securing certain- by governor and regentmayor on the basis of cri- ty about the use of forest area for mining activity. teria in accordance with the provision of legisla- tion. Article 5 (1) The minister shall stipulate the price of compen- (2) Governor or regent/mayor by virtue of their au- sation for information data and/or total cost of thority, before determining WIUP of metal miner- investment substitute to WIUP of metal mineral, als and WIUP of coal, which is to be recommend- WIUP of coal, WIUPK of metal minerals and WI- ed to the minister as meant in paragraph (1), shall UPK of coal already stipulated as meant in Article be obliged to announce it publicly. 2 and Article 3 on the basis of the availability of: a. formation of rocks carrying metal or coal min-

Article 3 eralization; (1) WIUPK of metal mineral and WIUPK of coal shall be stipulated by the minister on the basis of crite- b. data about indication of metal or coal mineral- ria in accordance with the provision of legislation. ization; (2) The minister, before stipulating WIUPK of metal c. data about potential of metal or coal mineral- mineral and WIUPK of coal as meant in paragraph ization; (1) shall be obliged to announce it publicly. d. data about reserves of metal mineral or coal;

Article 4 and/or (1) In the case of WIUP of metal mineral, WIUP of coal, WIUPK of metal mineral and WIUP of Coal e. other supporting facilities and infrastructure. Exploration being located inside forest area, the stipulation of WIUP of metal mineral, WIUP of (2) The price of compensation for information data coal, WIUPK of metal mineral and WIUPK of coal and/or total cost of investment substitute as as meant in Article 2 and Article 3 shall be ex- meant in paragraph (1) shall constitute the 3, Business News 8043/ 4-29-2014 minimum value of the basic price of tender for WIUP of metal mineral, WIUP of coal, WIUPK (2) WIUPK of metal minerals and WIUPK of coal al- of metal minerals and WIUPK of coal. ready stipulated as meant in Article 3 paragraph (1) shall be granted by the minister by means of (3) The price of compensation for information data priority or tender to BUMN, BUMD or private busi- and/or total cost of investment substitute in ness entity. WIUP of metal mineral, WIUP of coal, WIUPK of metal minerals and WIUPK of coal as meant in CHAPTER III paragraph (1) shall be calculated in accordance GRANTING OF SPECIAL MINING BUSINESS AREA with the provision of legislation. BY PRIORITY

Article 8 (4) The price of compensation for information data (1) The minister shall offer to BUMN and BUMD by and/or total cost of investment substitute in WIUP means of priority to secure WIUPK of metal min- of metal mineral, WIUP of coal, WIUPK of metal erals or WIUPK of coal following the stipulation minerals and WIUPK of coal shall be remitted as of WIUPK of metal minerals or WIUPK of coal as non-tax state revenue. meant in Article 3 paragraph (1).

Article 6 (2) BUMD as meant in paragraph (1) shall constitute The Director General shall submit WIUP of BUMD established by provincial government or metal mineral, WIUP of coal, WIUPK of metal minerals regency/municipal government overseeing the lo- and WIUPK of coa already stipulated by the minister cation of the would-be offered WIUPK of metal as meant in Article 2 and Article 3 to governor or re- minerals or WIUPK of coal gent/mayor by virtue of their authority.

Article 7 Article 9 (1) WIUP of metal mineral and WIUP of coal already (1) In the case of only one BUMN or BUMD being stipulated as meant in Article 2 paragraph (1) interested in the bid for WIUPK of metal mineral shall be granted by the minister, governor or re- or WIUPK of coal as meant in Article 8 paragraph gent/mayor by virtue of their authority by means (1), WIUPK of metal mineral or WIUPK of coal of tender to business entities, cooperatives and shall be granted directly to the the said BUMN or individuals. BUMD by paying the price of compensation for Business News 854514-25-2014 35 information data andor total cost of investment CHAPTER IV substitute. PROCEDURES FOR THE TENDER OF MINING BUSI- NESS LICENSE AREA OR SPECIAL MINING BUSI- (2) BUMN or BUMD shall be obliged to pay the price NESS LICENSE AREA OF METAL MINERALS AND of compensation for information data and/or total COAL cost of investment substitute as meant in para- Part One graph (1) in no later than 30 (thirty) working days Preparation of Tender as from the date of stipulation as recipient of WI- Article 11 UPK metal mineral or WIUPK of coal by priority. (1) The minister, governor or regent/mayor by virtue of their authority shall be obliged to announce (3) BUMN or BUMD already fulfilling the obligation as plan for the tender of WIUP of metal minerals or meant in paragraph (2) shall be obliged to sub- WIUP of coal already stipulated by the minister as mit application for IUPK of Metal Mineral Explora- meant in Article 2 paragraph (1). tion or IUPK of Coal Exploration in no later than 5 (2) The minister shall be obliged to announce the plan (five) working days as from the payment of com- for the tender of WIUPK of metal minerals or WI- pensation for information data and/or total cost of UPK of coal already stipulated as meant in Article investment substitute. 3 paragraph (1).

Article 10 (3) The announcement of the plan for the tender of (1) In the case of BUMN and/or BUMD interested in WIUP of metal minerals, WIUP of coal, WIUPK of the bid for WIUPK of metal minerals or WIUPK metal minerals or WIUPK of coal as meant in para- of coal as meant in Article 8 paragraph (1) being graph (1) and paragraph (2) shall be executed in more than one, WIUPK of metal minerals or WI- no later than 3 (three) months before the tender. UPK of cial shall be granted by tender.

Article 12 (2) In the event that none of BUMN and/or BUMD are The announcement of the plan for the tender interested in the bid for WIUPK of metal minerals of WIUP of metal minerals, WIUP of coal, WIUPK of or WIUPK of coal as meant in paragraph (1), WI- metal minerals or WIUPK of coal as meant in Article UPK of metal minerals or WIUPK of coal shall be 11 shall be published publicly: offered to private business entity by tender. a. in at least one local printed media and/or one na- tional printed media; 3( Business News 45/4-25-2014 b. in the office of the ministry in charge of mineral (3) The recommendation as meant in paragraph (2) and coal affairs or through website; and letter a and letter b shall be in the form of consid- eration containing information about the utiliza- c. in provincial and regency/municipal government tion of land in WIUP of metal minerals and WIUP office in charge of mineral and coal affairs or of coal and cultural characteristic of communities through website. on the basis of local wisdom in the framework of the tender for WIUP of metal minerals and WIUP

Article 13 of coal. (1) Tender for WIUPK of metal minerals and WIUPK of coal shall be executed by the Minister. (4) Governor or regent/mayor shall grant the recom- mendation as meant in paragraph (2) and para- (2) Tender for WIUP of metal minerals and WIUP of graph (3) in no later than 5 (five) working days coal shall be executed by: as from the date of receipt of request for recom- a. the minister, if WIUP of metal minerals and mendation. WIUP of coal is located in inter-provincial ter- ritory or offshore over 12 (twelve) nautical (5) Unless the recommendation as meant in para- miles from the coastline after securing rec- graph (1) is granted in no later than 5 (five) work- ommendaton frm local governor and regent/ ing days, the governor or regent/mayor shall be mayor; deemed approving the tender for WIUP of metal minaralq and WILJP nf nnal b. governor, if WIUP of metal minerals and WIUP of coal is located in inter-regency/city Part Two territory or offshore as long as 4 (four) up to Establishment of Tender Committee 12 (twelve) nautical miles from the coastline Article 14 after securing recommendation from local re- gent/mayor; and (1) In the framework of executing tender for WIUP of metal minerals, WIUP of coal, WIUPK of met- c. regent/mayor if WIUP of metal minerals and al minerals and WIUPK of coal, tender committe WIUP of coal is located in one regency/city or shall be established by: offshore up to 4 (four) neutical miles from the a. the minister, in the case of the tender com- , coastline. mittee of vviuP of metal minerals and W1UP Business News 8545/4-25-2014 37 of coal being located in inter-provincial terri- c. the Geology Board; tory and/or offshore over 12 (twelve) nautical miles from the coastline and tender commit- d. local provincial government; and/or tee of WIUPK of metal minerals and WIUPK of coal; e. local regency/municipal government. b. governor, in the case of the tender committee (3) The tender committee of WIUP of metal minerals of WIUP of metal minerals and WIUP of coal and WIUP of coal established by the governor as being located in inter-regency/city territory meant in paragraph (1) letter b shall be odd in the inside one province and/or offshore as long number and minimally comprise 5 (five) people as 4 (four) nautical miles up to 12 (twelve) having competence in the field of mineral and nautical miles from the coastline; and coal mining, consisting of representatives of: a. provincial government; c. regent/mayor, in the case of the tender com- mittee of WIUP of metal minerals and WIUP b. the ministry in charge of mineral and coal of coal being located inside one regency/city mining affairs, minimally one person; and and/or offshore up to 4 (four) nautical miles from the coastline. c. local regency/municipal government. (2) The tender committee of WIUP of metal minerals, (4) The tender committee of WIUP of metal minerals WIUP of coal, WIUPK of metal minerals and WI- and WIUP of coal established by the governor as UPK of coal established by the minister as meant meant in paragraph (1) letter c shall be odd in the in paragraph (1) letter a shall be odd in number number and minimally comprise 5 (five) people and comprise at least 7 (seven) people having having competence in the field of mineral and competence in the field of mineral or coal mining, coal mining, consisting of representatives of: consisting of representatives of: a. regency/municipal government; a. the secretariat general of the ministry in charge of mineral and coal mining affairs; b. the ministry in charge of mineral and coal mining affairs, minimally one person; and b. the directorate general; C. local provincial government. 31 Business News 8545/4-25-2014 UPK of coal;

Article 15 (1) The competence in the field of mineral and coal c. formulating timetable of tender for WIUP of mining as meant in Article 14 paragraph (2), para- metal minerals, WIUP of coal, WIUPK of met- graph (3), and paragraph (4) shall include know- al minerals or WIUPK of coal; eldge, expertise and/or experience in the field of mineral and/or coal, among others: d. announcing the time of tender for WIUP of a. mining techical affairs; metal minerals, WIUP of coal, WIUPK of met- al minerals or WIUPK of coal; b. mining law; e. executing re-announcement for two times ' c. mining finance; and/or at the maximum, if participant of tender for WIUP Of metal minerals, WIUP Of coal, WI- d. having working experience at least 3 (three) UPK of metal minerals or WIUPK of coal is years in the ministry in charge of mineral and only one; coal mining affairs and provincial technical service and/or regency/municipal technical f. evaluating pre-qualification and qualification service in charge of mineral and coal mining of participants of tender for WIUP Of metal affairs. minerals, WIUP Of coal, WIUPK of metal min- ' erals or WIUPK of coal; (2) Task and authority of the tender committee of , WIUP of metal minerals, WIUP of coal, WIUPK g. executing tender for WIUP Of metal minerals, of metal minerals and WIUPK of coal as meant in WIUP Of coal, WIUPK of metal minerals or

Article 14 shall include: WIUPK of coal; a. preparing tender for WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WI- h. evaluating the incoming bid prices; and UPK of coal; i. preparing account of result of the tender and b. preparing pre-qualification document and recommending the winner of tender for WIUP tender document of WIUP of metal minerals, Of metal minerals, WIUP Of coal, WIUPK of WIUP of coal, WIUPK of metal minerals or WI- metal minerals or WIUPK of coal. Business News 854514-25-2014 39 GOVERNMENT REGULATIONS Part Three ness entities: Requirement for Tender Participant a. BUMN;

Article 16 b. BUMD; and (1) Tender for WIUP of metal minerals or WIUP of coal c. national private business entities or private with the acreage 1,000 (one thousand) hectares business entity in the framework of foreign or smaller may be attended by: investment. a. business entity, as follows: 1. local BUMD; Article 17 2. local national private business entity; (1) In order to participate in the tender for WIUP of metal minerals or WIUP of coal, the tender partici- b. cooperative; and pants as meant in Article 16 shall fulfill require- ments: c. individual, consisting of: a. administrative; 1. individual person; b. technical; and 2. limited partnership company; and c. financial. 3. firm. (2) The administrative requirement as meant in para- (2) Tender for WIUP of metal minerals or WIUP of coal graph (1) letter a, in the case of: with the acreage 1,000 (one thousand) hectares a. business entity, submitting at least: up to 5,000 (five thousand) hectares may be at- 1. completion form prepared by the tender tended by: committee; a. business entity, as follows: 1. BUMN; 2. deed of establishment of business entity 2. BUMD; and operating specifically in the mining busi- 3. national private business entity; ness, already legalized by the authorized official; b. cooperative. 3. profile of business entity; (3) Tender for WIUP of metal minerals or WIUP of coal with the acreage over 5,000 (five thousand) 4. statement that it has not had IUP or IUPK, hectares may be attended by the following busi- in the case of non-listed business entity; 40 Business News 8545/4-25-2014 5. integrity pact containing statement that the cooperative is not under supervision the business entity is not under super- of the court, not in the state of bank- vision of the court, not in the state of ruptcy, business activity is not being sus- bankruptcy, business activity is not being pended and executive acting for and on suspended and director acting for and on behalf of the cooperative is not serving behalf of the company is not serving pen- penalty; alty; 6. statement that the cooperative does not 6. statement that the business entity does come into the list of ailing cooperatives; not come into the list of ailing business entities; 7. address which is permanent and clear as well as accesible by post; and 7. address, which is permanent and clear as well as accessible by post; and 8. taxpayer code number. 8. taxpayer code number. c. individual person, submitting at least: 1. completion form already prepared by ten- b. Cooperative, submitting at least: der committee; 1. completion form already prepared by ten- der committee; 2. statement that the said person has not had IUP; 2. deed of establishment of cooperative op- erating specifically in mining business, al- 3. integrity pact containing statement that ready legalized by the authorized official; the said person is not under supervision of the court, not in the state of bankrupt- 3. profile of cooperative; cy, and not serving penalty; 4. statement that the cooperative has not 4. statement that the said period does not had IUP; come into the list of ailing persons; 5. integrity pact containing statement that 5. address which is permanent and clear as Business News 8545/4-25-2014 well as accessible by post; 8. taxpayer code number. 6. citizenship identity card; and (3) The technical requirement as meant in paragraph (1) letter b shall be at least: 7. taxpayer code number. a. technical and managerial experience in the field of mineral and coal mining for 3 (three) d. firm and limited partnership company, sub- years at the minimum, or in the case of new mitting at least: company, securing support from holding 1. completion form prepared by the tender company, working partner or affiliate operat- committee; ing in the mining sector; 2. deed of establishment of company oper- b. the availability of human resources, minimally ating specifically in the mining business; one mining specialist and/or geologist having experience 3 (three) years at the minimum; 3. profile of company; c. work plan, covering: 4. statement that it has not had IUP; 1. RKAB, in the case of WIUP of metal min- erals and WIUP of coal in relations to ac- 5. integrity pact containing statement that tivity in 4 (four) exploration years; and the company is not under supervision of the court, not in the state of bankruptcy, 2. procurement of equipment and other fa- business activity is not being suspended cilities needed in the exploration of metal andor executive acting for and on behalf mineral and coal mining. of the company is not serving penalty; (4) The financial requirement as meant in paragraph 6. statement that the company does not (1) letter c shall include: come into the list of ailing companies; a. the last year financial statement already au- dited by public account, except for new com- 7. address, which is permanent and clear as pany by encloding financial statement; well as accessible by post; and b. placing guarantee for tender committment in 42 Business News 8545/4-25-2014 the form of cash money at state bank, ac- mittee; counting for 10% (ten percent) of the basic value of compensation for information data; b. deed of establishment of business entity op- and erating specifically in the mining business, already legalized by the authorized official; c. statement of readiness to pay the price of compensation for information data in accor- c. profile of business entity; dance with tender for WIUP of metal minerals andor WIUP of coal in no later than 5 (five) d. integrity pact containing statement that the working days following the announcement of business entity is not under supervision of the the tender winner. court, not in the state of bankruptcy, busi- ness activity is not being suspended and di-

Article 18 rector acting for and on behalf of the com- (1) Tender for WIUPK of metal minerals or WIUPK of pany is not serving penalty; coal may be attended by business entities as fol- lows: e. statement that the business entity does not a. BUMN; come into the list of ailing business entities; b. BUMD; and c. private business entity. f. address, which is permanent and clear as well as accessible by post; and (2) In order to participate in the tender for WIUPK of metal minerals and/or WIUPK of coal as meant in g. taxpayer code number. paragraph (1), the participants of the tender shall fulfill requirements: a. administrative; (4) The technical requirement as meant in paragraph b. technical; and (2) letter b shall include: c. financial. a. technical and managerial experience in the field of mineral and coal mining for (3) The administrative requirement as meant in para- 3 (three) years at the minimum, or in the graph (2) letter a shall include: case of new company, securing support a. completion form prepared by the tender com- from holding company, working partner or Business News 854514-25-2014 43 affiliate operating in the mining sector; (five) working days following the announce- ment of the tender winner b. the availability of human resources, minimally one mining specialist and/or geologist having Part Four experience 3 (three) years at the minimum; Tender Procedure

Article 19 c. work plan, covering: (1) The tender for WIUP of metal minerals, WIUP of 1. RKAB, in the case of WIUP of metal min- coal, WIUPK of metal minerals and WIUPK of coal erals and WIUP of coal in relations to ac- shall be executed in 2 (two) phases, namely: tivity in 4 (four) exploration years; and a. pre-qualification; and b. qualification. 2. procurement of equipment and other fa- cilities needed in the exploration of metal (2) The pre-qualification phase shall include: mineral and coal mining. a. announcing pre-qualification; b. taking pre-qualification document; (5) The financial requirement as meant in paragraph c. submitting pre-qualification document; (2) letter c shall include: d. evaluating pre-qualification; a. the last year financial statement already au- e. clarifying and confirming pre-qualification dited by public account, except for new com- document; pany by encloding financial statement; f. stipulating result of pre-qualification; g. announcing result of pre-qualification; and b. placing guarantee for tender committment in h. invitation to participants passing pre-qualifi- the form of cash money at state bank, ac- cation. counting for 10% (ten percent) of the basic value of compensation for information data; (3) The qualification phase shall include: and a. taking tender document; b. briefing tender; c. statement of readiness to pay the price of c. submitting bid price; compensation for information data in accor- d. opening envelope; dance with tender for WIUPK of metal miner- e. rating; als and/or WIUPK of coal in no later than 5 f. stipulating/announcing tender winner by the 44 Business News 8545/4-25-2014 GOVERNMENT REGULATIONS minister, governor or regent/mayor by virtue WIUPK of coal as meant in Article 19 paragraph (3) of their authority on the basis of evaluation of shall include at least: bid price and technical consideration; and a. map, coordinate, location and acreage of the g. opening opportunity to submit rejoinder would-be auctioned WIUP of metal minerals, against the tender decision. WIUP of coal, WIUPK of metal minerals or WIUPK of coal; (4) The tender committee of WIUP of metal miner- b. basic price of compensation for data and infor- als, WIUP of coal, WIUPK of metal minerals and mation and/or total cost of investment substitute WIUPK of coal shall be obliged to implement the with the amount stipulated on the basis of the tender procedure as meant in paragraph (1), para- provision as meant in Article 5; graph (2),and paragraph (3) fairly, transparently c. status of land, such as located in forest area or and boost fair competition. area destined to other purpose; and d. completing list of qualification form prepared by Part Five the tender committee. Pre-qualification Document

Article 20 Part Seven The pre-qualification document of WIUP Of Tender for Mining Business License Area and Special metal minerals, WIUP of coal, WIUPK of metal miner- Mining Business License Area of Exploration als or WIUPK of coal as meant in Article 19 paragraph Paragraph 1 (2) shall include at least: Pre-qualification of Tender for Mining Business Li- a. the administrative, technical and financial require- cense Area and Special Mining Business License ments as meant in Article 17 dan Article 18; Area b. completion list of pre-qualification document pre- Article 22 pared by tender committee. (1) The tender committee of WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WIUPK Part Six of coal shall be obliged to announce publicly pre- Tender Document ' qualification upon the expiration of the announce-

Article 21 ment of the plan for the tender by the minister, The document of tender for WIUP of metal governor or regent/mayor by virtue of their au- minerals, WIUP of coal, WIUPK of metal minerals or thority as meant in Article 11. Business News 8545/4-25-2014 45 (2) The pre-qualification phase of the tender for WIUP in one envelope in office organizing tender for of metal minerals, WIUP of coal, WIUPK of metal WIUP of metal minerals, WIUP of coal, WIUPK of minerals or WIUPK of coal shall be announced metal minerals or WIUPK of coal with the provi- publicly in: sion that the address of the tender committee of a. at least one local printed media and/or one WIUP of metal minerals, WIUP of coal, WIUPK national printed media; of metal minerals or WIUPK of coal is mentioned in the envelope with the phrase "Pre-qualification b. the office of the ministry in charge of mineral document of WIUP of metal minerals or WIUP of and coal affairs or through website; and coal" or Pre-qualification Document of WIUPK of metal minerals or WIUPK of coal". c. provincial and regency/municipal government office in charge of mineral and coal affairs or (3) The tender committee shall put note of date, time through website. of receipt and register number in the outer enve- lope of the pre-qualification document of WIUP of metal minerals, WIUP of coal, WIUPK of metal (3) Document of pre-qualification shall be taken in no minerals or WIUPK of coal. later than 7 (seven) working days as from the an- nouncement of the pre-qualification. (4) The pre-qualification document of WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals (4) Document of pre-qualification shall be taken in of- or WIUPK of coal submitted after surpassing the fice organizing tender by virtue of their authority. deadline as meant in paragraph (1) shall not be received by the tender committee.

Article 23 (1) Document of pre-qualification shall be submitted Article 24 in no later than 30 (thirty) working days as from (1) The tender committee shall evaluate pre-qualifica- the announcement of the pre-qualification. tion document of WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WIUPK of (2) Tender participants shall submit pre-qualification coal already securing registry number on the basis document of WIUP of metal minerals, WIUP of of administrative, technical and financial require- coal, WIUPK of metal minerals or WIUPK of coal ments. Business News 854514-25-2014 a. evaluation of the completeness of adminis- (2) The evaluation of the pre-qualification document trative, technical and financial requirements; as meant in paragraph (1) shall be executed by: and a. examining the completeness of administra- b. technical evaluation with the minimum evalu- tive, technical and financial requirements that ation standard stipulated by tender commit- tender participants have to fulfill; and tee. b. judging technical requirements, covering the completeness of data, rationality and quality (2) The stipulation and announcement of tender par- of data as follows: ticipants passing pre-qualification and reserving 1. experience in the mining sector, having a right to continie qualification process shall be score 20% (twenty percent) of the total done in no later than 7 (seven) working days as score of technical requirement; from the closing date of the submission of pre- qualification document. 2. the availability of human resources, hav- ing score 35% (thirty five percent) of the (3) The stipulation and announcement of the pre- total score of technical requirementa; and qualification result as meant in paragraph (2) and invitation to take tender document by tender 3. work plan having score 45% (forty five participants passing the pre-qualification shall be percent) of the total score of technical re- done in office organizing the tender or through quirement. website. (3) In evaluating the pre-qualification document as Article 26 meant in paragraph (2), the tender committee (1) In the even that only one tender participant sub- may clarify and confirm the pre-qualification doc- mits pre-qualification document of the tender for ument of WIUP of metal minerals, WIUP of coal, WIUP of metal minerals, WIUP of coal, WIUPK WIUPK of metal minerals or WIUPK of coal, which of metal minerals or WIUPK of coal, the tender is less clear without changing the substance. . committee shall announce again repeated pre- qualification in no later than 5 (five) working days

Article 25 as from the deadline of the submission of pre- (1) Stipulation of tender participants passing the pre- qualification document. qualification shall be based on: Business News 854514-25-2014 47 (2) In the case of only one tender participant sub- Business License Area and Special Mining Business mitting pre-qualificatio document of tender for License Area WIUP of metal minerals, WIUP of coal, WIUPK Article 27 of metal minerals or WIUPK of coal following the (1) Tender document shall be taken in office organz- announcement of the repeated pre-qualification: ing tender for IUP of Metal Mineral Exploration, a. the announcement of repeated pre-qualifica- IUP of Coal Exploration, IUPK of Metal Mineral tion may be executed for the second time; Exploration, or IUPK of Coal Exploration in no or U later than 7 (seven) working days as from the date when the taking of tender document is an- b the tender participant may be recommended nounced. as the winner of the tender with the provision that: (2) In no later than 3 (three) working days follow- 1. the pre-qualification document has ful- ing the closing date of the taking of tender docu- filled the stipulated requirement; ment, tender commitee shall be obliged to provide tender explanation for tender participants. 2. document of bid price is submitted. (3) The bid price as meant in paragraph (2) letter b (3) The point 2 shall be the same as or higher than the to be contiued basic price of tender already stipulated. Paragraph 2 Qualification Phase of Tender for Mining (R) 48 Business News 8545/4-25-2014 PROCEDURES FOR THE AUCTION OF MINING BUSINESS LICENSE AREA AND SPECIAL MINING BUSINESS LICENSE AREA IN METAL-MINERAL AND COAL MINING BUSINESS ACTIVITIES (Regulation of the Minister of Energy and Mineral Resources Number 28 Year 2013 dated September 13,2013) [Continued from Business News No. 8545 page 31-48] (3) The tender explanation as meant in paragraph (2) c. procedures for evaluating tender document and shall include: calculating the rating of tender winner. a. procedure for completing form of tender doc- ument; (4) The tender committee shall make account of ex- planation signed by the tender committee Panitia b. detail explanation about date related to the Lelang membuat berita acara penjelasan yang di- condition of mineral and/or coal potentials in tandatangani oleh and 2 (two) witnesses at the the auctioned IUP of Metal Mineral Explore- minimum. tion, IUP of Coal Exploration, IUPK of Metal Mineral Exploration, or IUPK of Coal Explore- Article 28 tion, consisting of: (1) Tender committee by virtue of authority granted 1. location; by the Minister, governor or regent/mayor may 2. coordinate; grant opportunity for participants of tender for 3. kind of mineral, including associated mineral WIUP of metal minerals, WIUP of coal, WIUPK of and coal; metal minerals or WIUPK of coal that pass pre- 4. summary of result of study and survey; qualification to conduct site visit in a period ad- 5. summary of result of preliminary exploration, justed to the distance of the would-be auctioned if any a; location after securing the tender explanation as 6. other supporting facilities and infrastructure, meant in Article 27. if any; and 7. status of land; (2) If the participants of tender for WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals Business News 8546-857/4-30-2014 37 or WIUPK of coal planning to conduct site visit with the provision that the address of the tender ' involve foreigner, the tender participants shall be committee of the WIUP of metal minerals, WIUP obliged to fulfill requirements in accordance with of coal, WIUPK of metal minerals or WIUPK of the provision of legislation. coal. Is mentioned with the phrase "Bid Price of WIUP of Metal Minerals or WIUP of Coal" or Bid (3) Cost needed to conduct the site visit as meant in Price of WIUPK of Metal Minerals or WIUPK of paragraph (1) and paragraph (2) shall be charged Coal ". to the participants of tender for WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals (5) Note of date, receipt time and registry number or WIUPK of coal. shall be put on the outer envelope of bid price received by the tender committee.

Article 29

Article 30 (1) Participants passing pre-qualification shall be (1) The tender committee shall open the envelopes of given opportunity to prepare bid price in no later the bid price on the stipulated time for the need of than 5 (five) working days following the signing evaluation in a bid to determine the ranking of bid of account of tender explanation or site visit, if price of WIUP of metal minerals, WIUP of coal, required. WIUPK of metal minerals or WIUPK of coal. ' (2) The bid price shall be submitted in 2 (two) hours (2) Tender participants unable to appear in the open- before the opening of envelope of bid price. ing of envelope and the rating as meant in para- graph (1) shall send their representatives by pow- (3) The bid price as meant in paragraph (1 ) shall be er of attorney. submitted in office authorized to organize tender for the said WIUP of metal minerals, WIUP of (3) In the case of tender participant not ending rep- coal, WIUPK of metal minerals or WIUPK of coal. resentative as meant in paragraph (2), the tender participant shall be deemed already accepting the (4) In the bid price as meant in paragraph (1), tender result of the rating of bid price of bid price of participants shall be obliged to insert bid price of WIUP of metal minerals, WIUP of coal, WIUPK of WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WIUPK of coal. metal minerals or WIUPK of coal in one envelope 38 Business News 85 46-857/4-30-2014 Paragraph 3 Article 32 Evaluation and Stipulation of Tender Winner (1) The tender commitee shall report result of the rat-

Article 31 ing of prospective winners of the tender for WIUP (1) The tender committee shall stipulate the ranking of metal minerals, WIUP of coal, WIUPK of metal of prospective winner of the tender for bid price minerals or WIUPK of coal to the minister, gover- of WIUP of metal minerals, WIUP of coal, WIUPK nor or regent/mayor by virtue of their authority to of metal minerals or WIUPK of coal on the basis be stipulated as the winner of the tender for WIUP of the sum of of metal minerals, WIUP of coal, WIUPK of metal a. scores resulting from the evaluation of minerals or WIUPK of coal as long with account prequalification; and of tender for WIUP of metal minerals, WIUP of b. scores of the bid price in accordance with the coal, WIUPK of metal minerals or WIUPK of coal. ranking. (2) The minister, governor or regent/mayor by virtue (2) The score resulting from the pre-qualification eval- of their authority, in no later than 5 (five) working uation as meant in paragraph (1) letter a shall be days after receiving report of the result of the rat- 40% (forty percent). ing of prospective winners of the tender from the tender commitee as meant in paragraph (1) shall (3) The score of the bid price according to the ranking stipulate the winner of tender for WIUP of metal as meant in paragraph (1) letter b shall be 60 % minerals, WIUP of coal, WIUPK of metal minerals (sixty percent). or WIUPK of coal. (4) In evaluating the bid price, the tender committee (3) The minister, governor or regent/mayor by virtue shall be prohibited from changing, supplementing of their authority shall announce and notify in and reducing bid price by whatever reason. writing the stipulation of the winner of the tender to the winner of tender for WIUP of metal miner- (5) The tender committee shall stipulate the rank- als, WIUP of coal, WIUPK of metal minerals or ing of prospective winner of the tender in accor- WIUPK of coal. dance with the result of evaluation as meant in paragraph (1), paragraph (2), and paragraph (3), Article 33 which is written down into account of tender. (1) In the case of only one tender participant sub- mitting the bid price as meant in Article 28, the Business News 8546-857/4-30-2014 39 GOVERNMENT REGULATIONS tender shall be repeated by inviting participants d. substance of corruption, collusion and nepo- passing the pre-qualification to submit again bid tism among tender participants; and/or price in no later than 3 (three) working days as e. substance of corruption, collusion and nepo- from the date of invitation to repeat tender. tism between tender participant and tender committee or other authorized official. (2) If the tender participant as meant in paragraph (1) is still one, the tender participant shall be stipulat- (2) In the case of participant of tender for WIUP of ed as the winner of the tender with the provision metal minerals, WIUP of coal, WIUPK of metal that the bid price shall be the same as or higher minerals or WIUPK of coal submitting rejoinder to than the stipulated basic price of tender. the Minister, governor or regent/mayor by virtue of their authority after surpassing the period as Paragraph 4 meant in paragraph (1), the rejoinder shall not be Rejoinder processed.

Article 34 (1) Participants of tender for WIUP of metal minerals, (3) The minister, governor or regent/mayor by virtue WIUP of coal, WIUPK of metal minerals or WIUPK of their authority shall be obliged to provide an- of coal that feel affected individually or collec- swer in no later than 5 (five) working days as tively with other participants may file rejoinder to from the receipt of the rejoinder. the minister, governor or regent/mayor by virtue of their authority in no later than 3 (three) work- (4) If the rejoinder turns out to be true, the tender for ing days following the stipulation and announce- WIUP of metal minerals, WIUP of coal, WIUPK ment of the winner of tender for WIUP of metal of metal minerals or WIUPK of coal shall be re- minerals, WIUP of coal, WIUPK of metal minerals peated. or WIUPK of coal in the case of the tender partici- pants finding: (5) In the case of the rejoinder period expiring and a. deviation from the provision and procedure no rejoinder coming or the settlement of rejoinder already stipulated in tender document; deciding that the execution of the tender and rat- b. specified engineering thus preventing fair ing have been true, the winner of tender for WIUP competition; of metal minerals, WIUP of coal, WIUPK of metal c. abuse of power by tender committee or other minerals or WIUPK of coal as meant in Article 32 authorized official; shall be obliged to submit application for IUP of 40 Business News 8546-857/4-30-2014 GOVERNMENT REGUL Al IONS Exploration or IUPK of Exploration in no later than Article 37 5 (five) working days to the Minister, governor or (1) The placement of guarantee for tender committ- regent/mayor by virtue of their authority. ment to WIUPK of metal mineral or WIUPK of coal as meant in Article 18 paragraph (5) letter b shall

Article 35 be executed at the same time as the submission The winner of tender for WIUP of metal min- of the pre-qualification document as as meant in erals, WIUP of coal, WIUPK of metal minerals or WI- Article 23. UPK of coal as meant in Article 34 paragraph (5) shall submit application for IUP of Exploration and IUPK of (2) J The gurantee for tender comittment of WIUPK Exploration to the minister, governor or regent/mayor of metal minerals or WIUPK of coal as meant in by virtue of their authority on the basis of require- paragraph (1) shall be placed in the form of time ment and procedures governed separately in a minis- deposit at state bank on behalf of the minister terial regulation. qualitate qua (q.q.) BUMN, BUMD or Private Busi- ness Entity Being Tender Participant. Part Eight Guarantee for Tender Committment

Article 36 Article 38 (1) The placement of guaranteee for tender committ- (1) The guarantee for tender commitment to WIUP ment to WIUP of metal minerals or WIUP of coal of metal minerals, WIUP of coal, WIUPK of metal as meant in Article 17 paragraph (4) letter b shall minerals or WIUPK of coal as meant in Article 36 be executed at the same time as the submission paragraph (2) and Article 37 paragraph (2) shall of the pre-qualification document as meant in Ar- be returned wholly to the tender participant in ac- ticle 23. cordance with the remitted nominal value along with the interest thereof. (2) The gurantee for tender comittment of WIUP of metal minerals or WIUP of coal as meant in para- (2) The guarantee for tender commitment to WIUP graph (1) shall be placed in the form of time de- of metal minerals, WIUP of coal, WIUPK of metal posit at state bank on behalf of the minister, gov- minerals or WIUPK of coal as meant in paragraph ernor or regent/mayor by virtue of their authority (1) shall be returned: qualitate qua (q.q.) Business Entity, Cooperative a. 5 (five) working days following the announce- Oc Mdivictut tewder pacticipam. meht ol the pve-quakiiication resukt of tender Business News 8546-857/4-30-2014 41 for WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WIUPK of coal, to tender par- ticipants not passing the pre-qualification; b. 14 (fourteen) working days following the stipulation of the winner of the tender for WIUP of metal min- erals, WIUP of coal, WIUPK of metal minerals or WIUPK of coal, to tender participants ranking fourth or more in the rating of tender winner; or c. 5 (five) working days following the issuance of IUP of Exploration or IUPK of Exploration, to the winners of tender for WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WIUPK of coal that rank second and third in the rating of tender winners.

Article 39 The guarantee for tender committement shall become property of the state as non-tax state revenue or regional govermment in the event that: a. tender participants already passing pre-qualification do not submit bid price as long as the winner of tender has been stipulated; b. tender participants already stipulated as tender winner do not submit application for IUP of Exploration or IUPK of Exploration. CHAPTER V TRANSITIONAL PROVISION

Article 40 In the case of the minister, governor and regent/mayor already executing tender for WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WIUPK of coal and already stipulating IUP of Metal Mineral Exploration, IUP of Coal Exploration, IUPK of Metal Mineral Exploration, or IUPK of Coal Exploration to winners of tenders for WIUP of metal minerals, WIUP of coal, WIUPK of metal minerals or WIUPK of coal before the enforcement of this ministerial regulation, IUP of Metal Mineral Exploration, IUP of Coal Exploration, IUPK of Metal Mineral Exploration, or IUPK of Coal Exploration shall be declared to remain effective until the licensing period expires. 42 1 Business News 8546-857/ 4-30-2014 CHAPTER VI CONCLUSION

Article 41 The ministerial regulation shall come into force as from the date of promulgation. For public cognizance, the ministerial regulation shall be promulgated by placing it in State Gazette of the Republic of Indonesia. Stipulated in Jakarta On September 13, 2013 THE MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA Sgd JEROWACIK Promulgated in Jakarta On September 13, 2013 THE MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA sgd. AMIR SYAMSUDIN STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2013 NUMBER 1123 (R) Business News 8546-857/43O-2O14 43