Regulation of the Minister of Energy and Mineral Resources of RI No. 7/2012 on the increasing of the Added Value of Mineral by Processing and Refining Activities

Article 111 of Government Regulation No. 23/2010 zette of the Republic of Indonesia of 2009 No. on the Realization of Mineral and Coal Mining Busi- 546); nesses, it is necessary to stipulate Regulation of the 6. Regulation of the Energy and Mineral Resources Energy and Mineral Resources Minister on the Im- Minister No. 18/2010 on the Organization and provement of Value Added of Minerals through Min- Work Mechanism of the Energy and Mineral Re- eral Processing and Purifying Activities; sources Ministry (State Gazette of the Republic of Indonesia of 2010 No. 552); In view of: 1. Law No. 4/2009 on Mineral and Coal Mining (Stat- DECIDES : ute Book of 2009 No. 4, Supplement to Statute Book No. 4959); To stipulate : 2. Government Regulation No. 23/2010 on the Re- REGULATION OF THE ENERGY AND MINERAL RE- alization of Mineral and Coal Mining Businesses SOURCES MINISTER ON THE INCREASING OF VAL- (Statute Book of 2010 No. 29, Supplement to UE ADDED OF MINERALS THROUGH MINERAL PRO- Statute Book No. 5111 ); CESSING AND REFINING ACTIVITIES. 3. Government Regulation No. 55/2010 on the De- velopment and Supervision of Mineral and Coal CHAPTER I Mining Businesses (Statute Book of 2010 No. 55, GENERAL PROVISIONS Business Hews 8351-8352/ t-9-2013 45

Article 1 9. IUP Exploration is a business permit which is is- Referred to in this Ministerial Regulation as : sued to carry out a phase of general investigation, 1 . Mineral is an inorganic compound which is formed exploration and feasibility study. on earth and has certain physical and chemical 10. IUP Production Operation is a business permit natures and regular crystal structure or a com- which is issued after IUP exploration has been bination of the elements forming rocks, either in completed to carry out a phase of production op- loose or integrated form. eration activities. 2. Metal mineral is a mineral whose main element 11 . Smallholder mining permit, hereinafter called IPR, contains metal, has metal polish, and generally is a permit which is issued to carry out a mining functions as good heat and electrical transfer. business within smallholder mining concession 3. Non-metal mineral is a mineral whose main ele- with limited acreage and investment. ment consists of non-metal elements such as 12. IUPK Exploration is a business permit which is is- bentonite (bentonite), calcite (limestone), silica sued to carry out a phase of general investigation, (quartz sand), and so on. exploration and feasibility study within the area of 4. Rock is a solid mass which consists of one or special mining business permit. more types of minerals forming crust, either in 13. IUPK Production Operation is a business permit massive or loose form. which is issued after IUPK exploration has been 5. Concentrate is a concentration product which is completed to carry out a phase of production op- rich in valuable minerals as a result of separation eration activities within the area of special mining from ore mineral processing. business permit. 6. Ore is a group of minerals which contain one or 14. Processing and refining is a mining business ac- more metals which can be processed profitably. tivity to increase the quality of minerals and to 7. Byproduct is a mining product other than main utilize and obtain mineral derivatives. mining product which constitutes a side of pro- 15. Value added is value added of mineral as a result cessing and refining activities which has econom- of process done to mineral. ic value. 16. Increasing of value added is the increasing of 8. Slag is a residual material from a metal smelting value of mineral in order to produce economic, or refining process which floats at liquid metal social and cultural benefits. surface formed from a mixture of supplement, 1 7. Research and development institute is an institute ore/metal contaminant, fuel dust, and furnace- conducting research and development in the min- coating materials. eral 1\e\d. 46 Business News 8351-835211-9-2013 18. Minister is a minister carrying out government af- c. processing for certain rock mining commodi- fairs in the mineral mining sector. ties. 19. Director General is the Director General whose (2) Processing and/or refining for each type of certain tasks and responsibilities cover the mineral min- mineral mining commodities as referred to in para- ing sector. graph ( 1) are done based on the following consid- erations: CHAPTER II a. having ore resources and reserves in large PROCEDURE OF INCREASING amounts; THE VALUE ADDED OF MINERALS b. to encourage efforts to increase the domestic

Article 2 metal production capacity; ( 1) Groups of mineral mining commodities whose c. processing and/or refining technology has value added can be increased consist of : reached a phase of test; a. metal minerals; d. end products of processing and/or refining b. non-metal minerals; or serve as raw materials of industries for domes- c. rocks. tic needs; (2) The increasing of value added as referred to in e. end byproducts resulting from processing and/ paragraph (1) can be made through : or refining serve as raw materials for domestic a. processing and/or refining for metal mineral chemical ind fertilizer industries; mining commodities; f. as raw materials for mineral-based domestic b. processing for non-metal mineral mining com- strategic industries; modities; and g. having a double effect on the economy and c. processing for rock mining commodities. state; and/or h. to increase state revenues.

Article 3 (3) The considerations to conduct processing and/or ( 1) The increasing of value added of mining commod- refining for each type of certain mineral mining ities as referred to in Article 2 can come in the commodities as referred to in paragraph (2) serve form of: as the basis to set the minimum standard of the a. processing and/or refining for certain metal processing and refining of certain mineral mining mineral mining commodities; commodities. b. processing for certain non-metal mineral min- (4) The types of certain metal mineral mining com- ing commoditiesj and modities as referred to in paragraph ( 1) letter a Business Hews 8351-8352I 1-9-2013 47 include the ores of : a. toseki; a. copper; b. marble; b. gold; C. onik; C. silver; d. perlit; d. tin; e. slate; e. lead and zinc; f. granite; f. chromium; g. granodiorite; g. molibdenum; h. gabro; h. platinum group metal; i. peridotite; i. bauxite; j. basalt; j. iron ore; k. opal; k. iron sand; I. kalsedon; I. nickel and/or cobalt; m. chert; m. mangan; and n. jasper; n. antimon. o. krisoprase; (5) Types of certain non-metal mineral mining com- p. garnet; modities as referred to in paragraph ( 1) letter b q. giok; include : r. agat; and a. calcite (limestone); s. topas. b. feldspar; c. kaolin; d. bentonite; e. zeolite; Article 4 .......... f. cilica (quartz sand); to be continued g. zirkon; and h. diamond. (6) Types of certain rock mining commodities as re- ferred to in paragraph ( 1) letter c include: (S) 48 Business News 8351-8352/ 1-9-2013 THE INCREASING OF VALUE ADDED OF MINERALS THROUGH MINERAL PROCESSING AND REFINING ACTIVITIES (Regulation of the Energy and Mineral Resources Minister No. 07 /2012 dated February 6, 2012) [Continued from Business News No. 8351-8352 page 45-48]

Article 4 modities in the form of anode mud and telluride ( 1) Each type of certain metal mineral mining com- copper shall be domestically processed and/or re- modities as referred to in Article 3 paragraph (4) fined according to the minimum standard of the shall be processed and refined according to the processing and/or refining of metal mineral mining minimum standard of processing and/or refining commodities as contained in Attachment I which as contained in Attachment I which is an integral is an integral part of this Ministerial Regulation. part of this Ministerial Regulation. (2) By products or residues from the processing and/or (2) Each type of certain non-metal mineral mining refining of tin metal mineral mining commodities in commodities as referred to in Article 3 paragraph the form of zirkon, ilmenit, rutil, monasit, xenotim (5) shall be processed according to the minimum and terak shall be domestically processed and/or standard of processing as contained in Attach- refined according to the minimum standard of the ment II which is an integral part of this Ministerial processing and/or refining of metal mineral mining Regulation. commodities as contained in Attachment I which (3) Each type of certain rock mining commodities is an integral part of this Ministerial Regulation. as referred to in Article 3 paragraph (6) shall be (3) By products or residues from the processing and/ processed according to the minimum standard of or refining of lead and zinc metal mineral mining processing as contained in Attachment Ill which commodities in the form of gold and silver shall is an integral part of this Ministerial Regulation. be domestically processed and/or refined accord- ing to the minimum standard of the processing

Article 5 and/or refining of metal mineral mining commodi- (1) By products or residues from the processing and/ ties as contained in Attachment I which is an in- or refining of copper metal mineral mining com- tegral part of this Ministerial Regulation. Business Hews 835311-11-2013 43 (4) By products or residues from the processing and/ refining of domestic mining products for certain or refining of iron sand metal mineral mining com- metal mineral mining commodities as referred to modities in the form of terak shall be domestically in Article 3. processed and/or refined according to the mini- (2) Holders of IUP Production Operation of non-metal mum standard of the processing and/or refining of minerals and rocks shall conduct the processing metal mineral mining commodities as contained of domestic mining products for certain non-metal in Attachment I which is an integral part of this mineral and rock mining commodities as referred Ministerial Regulation. to in Article 3. (5) By products or residues from the processing of (3) The processing and/or refining of mining products non-metal mineral mining commodities still con- produced by holders of IUP Production Operation taining metal elements or minerals having eco- and IUPK Production Operation as referred to in nomic value shall be domestically processed paragraph (1) and paragraph (2) can be done di- according to the minimum standard of the pro- rectly or in cooperation with other holders of IUP cessing and/or refining of metal mineral mining Production Operation, IUPK Production Operation, commodities as contained in Attachment I which and/or holders of special IUP Production Opera- is an integral part of this Ministerial Regulation. tion for processing and/or refining.

Article 6 Article 8 Metal mineral mining commodities including ( 1) If holders of IUP Production Operation and IUPK by products/residues/mineral derivatives, non-metal Production Operation as referred to in Article 7 minerals and certain rocks sold abroad shall meet the are not economical to conduct the processing minimum standard of processing and/or refining of and/or refining of minerals on their own, they can certain mineral mining commodities as referred to in cooperate with other parties in the processing

Article 4 and Article 5. and/or refining of minerals that have : a. IUP Production Operation; CHAPTER Ill b. IUPK Production Operation; or THE INCREASING OF VALUE ADDED c. Special IUP Production Operation for process-

Article 7 ing and/or refining. ( 1) Holders of IUP Production Operation of metal (2) The cooperation in the processing and/or refining minerals and IUPK Production Operation of met- as referred to in paragraph ( 1) can come in the al minerals shall conduct the processing and/or form of: Business News 835311-11-2013 rrmn1111 a. sale and purchase of ores or concentrates; are not economical to conduct processing and/or b. activities to conduct processing and/or refin- refining or cannot establish cooperation or part- ing activities; or nership as referred to in Article 8 and Article 9, c. joint construction of infrastructures and facili- they shall consult the Director General to imple- ties for processing and/or refining. ment this Ministerial Regulation. (3) Plans for cooperation in the processing and/or re- (2) Based on the result of consultation as referred to fining as referred to in paragraph (2) can only be in paragraph ( 1), the Director General can among realized after securing a seal of approval from the others appoint other holders of IUP Production Director General on behalf of the Minister. Operation, IUPK Production Operation, and/or (4) Special IUP Production Operation for processing special IUP Production Operation to conduct the and/or refining as referred to in paragraph ( 1) let- processing and/or refining their mining commodi- ter c are issued by the Director General on behalf ties, provided they meet specifications according of the Minister, governors, or regents/mayors ac- to the capacity of processing and/or refining fa- cording to the legislation. cilities.

Article 9 Article 11 ( 1) Holders of IUP Production Operation and IUPK The Director General can facilitate holders Production Operation as referred to in Article 7 of IUP Production Operation, IUPK Production Op- can establish partnership with other corporate- eration, and/or special IUP Production Operation in bodies in building processing and/or refining fa- processing and/or refining activities to accommodate cilities. mining commodities from holders of IUP Production (2) The partnership as referred to in paragraph ( 1) Operation, IUPK Production Operation, and IPR which can come in the form of share ownership. are not economical to conduct processing and/or re- (3) The partnership as referred to in paragraph (1) fining on their own, provided they meet specifications can be realized only after securing a seal of ap- according to the capacity of processing and/or refin- proval from the Director General on behalf of the ing facilities. Minister. CHAPTER IV

Article 10 THE OBLIGATIONS OF HOLDERS OF ( 1 ) If according to the results of a feasibility study IUP PRODUCTION OPERATION, hCJlcJer~ Qf IUP Exploration and IUPK Exploration lUPK PRODUCTlON OPERATlON, ANO Business Hews 8353/1-11-2013 45 SPECIAL IUP PRODUCTION OPERATION FOR feess on mineral derivatives utilized shall be paid PROCESSING AND REFINING ACTIVITIES by mineral buyers.

Article 12 ( 1) Holders of IUP Production Operation and IUPK Article 13 Production Operation, and special IUP Production (1) Holders of IUP Production Operation of copper, Operation for processing and/or refining activities IUPK Production Operation of copper, and special that conduct the processing and/or refining of IUP Production Operation for the processing and ores, concentrates or intermediate products ac- refining of copper as well as special IUP Produc- cording to the minimum standard of processing tion Operation for transportation and sales that and/or refining from holders of : sell copper mining commodities, including by- a. other IUP Production Operation; products or residues from processing and/or re- b. other IUPK Production Operation; fining in the form of anode mud and teluride cop- c. IPR; per abroad shall meet the minimum standard of d. temporary permit for transportation and sales; processing and/or refining of metal mineral mining e. IUP Production Operation for sales; and/or commodities as contained in Attachment I which f. special IUP Production Operation for trans- is an integral part of this Ministerial Regulation. portation and sales, based on cooperation (2) Holders of IUP Production Operation of lead and as referred to in Article 8 are not subject to zinc, IUPK Production Operation of lead and zinc, production fees on minerals processed and/or and special IUP Production Operation for the pro- refined, except mineral derivatives utilized are cessing and refining of lead and zinc as well as paid by mineral buyers. special IUP Production Operation for transporta- (2) If holders of special IUP Production Operation for tion and sales that sell lead and zinc mining com- processing and/or refining conduct the processing modities, including byproducts or residues from and refining of ores, concentrates, or intermedi- processing and/or refining in the form of anode ate products according to the minimum standard gold and silver abroad shall meet the minimum of processing and/or refining based on the co- standard of processing and/or refining of metal operation as referred to in Article 8 with other mineral mining commodities as contained in At- holders of special IUP Production Operation for tachment I which is an integral part of this Minis- processing and/or refining whose products have terial Regulation. not met the minimum standard of processing and/ (3) Holders of IUP Production Operation of iron sand, or refining according to the legislation, production IUPK Production Operation of iron sand, and spe- 46 Business News 8353! 1-11-2013 cial IUP Production Operation for the processing Production Operation of tin, and special IUP Pro- and refining of iron sand as well as special IUP duction Operation for the processing and/or re- Production Operation for transportation and sales fining of tin that conduct the processing and/or that sell iron sand mining commodities, including refining of tin metal shall separate and process its byproducts or residues from processing and/or mineral derivatives in the form of zirkon, ilmenit, refining in the form of terak abroad shall meet rutil, monasit, xenotim, and process terak with the minimum standard of processing and/or refin- the minimum product standard of processing and ing of metal mineral mining commodities as con- refining of metal minerals as contained in Attach- tained in Attachment I which is an integral part of ment I which is an integral part of this Ministerial this Ministerial Regulation. Regulation. (4) Holders of IUP Production Operation of copper, (2) Holders of IUP Production Operation of tin, IUPK IUPK Production Operation of copper, and special Production Operation of tin, and special IUP Pro- IUP Production Operation for the processing and duction Operation for the processing and/or refin- refining of copper that have byproducts or resi- ing of tin as well as special IUP Production Op- dues from the processing and/or refining in the eration for transportation and sales that sell tin form of anode mud and teluride copper that have mining commodities including byproducts or resi- not met the minimum standard of processing and/ dues as a result of processing and/or refining as or refining as referred to in paragraph ( 1 ) shall be well as mineral derivatives in the form of zirkon, detained according to the legislation. ilmenit, rutil, monasit, xenotim, and terak abroad (5) Holders of IUP Production Operation of iron sand, shall meet the minimum standard of processing IUPK Production Operation of iron sand, and spe- and refining of metal mineral mining commodities cial IUP Production Operation for the processing as referred to in paragraph ( 1 ) . and refining of iron sand that have byproducts (3) If holders of IUP Production Operation of tin, IUPK or residues from the processing and/or refining in Production Operation of tin, and special IUP Pro- the form of terak that have not met the minimum duction Operation for the processing and/or re- standard of processing and/or refining as referred fining of tin that have mineral byproducts in the to in paragraph (3) shall be detained according to form of zirkon, ilmenit, rutil, monasit, xenotim, the legislation. and terak that have not met the minimum stan- dard of processing and refining as referred to in

Article 14 paragraph (1 I shall be detained according to the n\ lt l\oldtmi Of \UP Production Operation of tin, lUPK legislation. Business News 835311-11-2013 47 CHAPTER V d. research and development in the processing COOPERATION IN CONDUCTING RESEARCH and/or refining as referred to in paragraph ( 1) AND DEVELOPMENT FOR PROCESSING covering : AND/OR REFINING 1) problem solving and efficient process;

Article 15 2) validating new technology that has not ( 1) Holders of IUP Production Operation, IUPK Pro- been tested; duction Operation, and special IUP Production g. master of technology, transfer of technology, Operation for processing and/or refining can con- and innovation of technology; and/or duct cooperation by prioritizing national interests h. techno-economic feasibility. to conduct research and development in the pro- (2) The results of research and development in the cessing and/or refining of mining commodities processing and/or refining of mining commodi- with: ties as referred to in paragraph ( 1 ) can serve as a. research and development institute at the min- the basis for the Minister to review the minimum istry carrying out government affairs in the standard of the processing and refining of certain mineral mining field; minerals as referred to in Article 4 and Article 5. b. independent and competent research and de- velopment institute; and/or CHAPTER VI. ... c. state and/or private institutes of higher learn- to be continued ing. (S) General Manager/Business Manager : Taufik Sumawinata English Edition : Wednesday and Friday, Editor in Chief : Taufik Sumawinata Except holidays Managing Editor : Arisanto Indonesia Edition : Monday, Wednesday and Friday, Correspondents : Expert from Business & Except holiday Scientific world Published/Printed by : PT. Business News, Circulation : 759 20 117, 759 20 118 Member of SPS/SGP Fax : 758 19 268 Address : JI. Puri Kencana No. 38 Documentation : 759 20 116 Jakarta Selatan 1241 0 New subscriber : Minimally 3 (three) months, Press Publication License (SIUPP) without restitution No. 012/SK/MENPEN/SIUPP/F.5/1985, November 19, 1985 www.businessnews.co .id ISSN 1410 - 2501 The copyright of Business News Bulletin, is protected by the Law, Everybody is prohibited from multiplying the content partly or wholly in whatever form and means, mechanically or electronically including copying, without prior written permit of the publisher. Reproduction of any part only by agreement 48 Business News 835311-11-2013 GOVERNMENT REGULATIONS THE INCREASING OF VALUE ADDED OF MINERALS THROUGH MINERAL PROCESSING AND REFINING ACTIVITIES (Regulation of the Energy and Mineral Resources Minister No. 07 /2012 dated February 6, 2012) [Continued from Business News No. 8353 page 43-48] CHAPTER VI (5), or Article 14 paragraph (1), paragraph (2), ADMINISTRATIVE SANCTIONS or paragraph (3) shall be liable to administrative

Article 16 sanctions. (1) Holders of IUP Production Operation or IUPK Pro- (3) Holders of special IUP Production Operation for duction Operation that violate provisions in Ar- transport and sales that violate provisions in Ar- ticle 4 paragraph (1 ), paragraph (2) or paragraph ticle 6, Article 13 paragraph £1 ), paragraph (2), .,. (3), Article 5 paragraph (1 ), paragraph (2), para- paragraph (3), or Article 14 paragraph (2) shall be graph (3), paragraph (4) or paragraph (5), Article liable to administrative sanctions. 6, Article 7 paragraph ( 1) or paragraph (2), Ar- (4) The administrative sanctions as referred to in .?.£ ticle 12 paragraph (1) or paragraph (2), Article paragraph (1), pa~agraph (2), ~ paragraph (3) 13 paragraph (1 ), paragraph (2), paragraph (3), shall come in the form of: paragraph (4), or paragraph (5), or Article 14 a. written warning; paragraph (1 ), paragraph (2), or paragraph (3) b. temporary suspension of processing and/or shall be liable to administrative sanctions. refining activities or transportation and sale (2) Holders of special IUP Production Operation for activities; and/or process and/or refining that violate provisions c. revocation of IUP Production Operation, IUPK in Article 4 paragraph ( 1), paragraph (2) or para- Production Operation, special IUP Production graph (3), Article 5 paragraph ( 1), paragraph Operation for processing and/or refining, or (2), paragraph (3), paragraph (4) or paragraph special IUP Production Operation for transpor- (5), Article 6, Article 12 paragraph ( 1) para- tation and sales. graph (2), Article 13 paragraph (1), paragraph (5) The administrative sanctions as referred to in (2), paragraph (3), paragraph (4), or paragraph paragraph (4) shall be imposed by the Minister, Business Wews 8354-8355I 1-16-2013 governors, or regents/mayors according to their in Article 16 paragraph (4) letter c shall be imposed authority. on holders of IUP Production Operation, IUPK Pro- duction Operation, special IUP Production Operation

Article 17 for the processing and/or refining, or special IUP Pro- The administrative sanctions in the form of duction Operation for transportation and sales that do written warning as referred to in Article 16 paragraph not meet the obligations until the end of the sanctions (4) letter a are given twice at the most, with the span in the form of temporarily-suspended activities as re- of each warning covering a maximum of 1 (one) month. ferred to in Article 18 paragraph (2).

Article 18 CHAPTER VII ( 1) If holders of IUP Production Operation, IUPK Pro- OTHER PROVISIONS duction Operation, special IUP Production Opera- Article 20 tion for the processing and/or refining, or special ( 1) Holders of temporary permits for transport and IUP Production Operation for transportation and sales that are to sell minerals tapped in the phase sales, that receive written warnings after the of exploration activities or feasibility study shall written warnings as referred to in Article 17 have sell the minerals in the domestic market. expired.have not met their obligations, they shall (2) Holders of IUP Production Operation for sales that be liable to administrative sanctions in the form of are not engaged in the mining business sector and temporarily-suspended activities as referred to in are to sell tapped minerals shall sell the minerals

Article 16 paragraph (4) letter b. in the domestic market. (2) The administrative sanctions in the form of tern- porarily-suspended activities as referred to in CHAPTER IX paragraph ( 1) shall be imposed for a maximum of TRANSITIONAL PROVISIONS 2 (two) months. Article 21 When this Ministerial Regulation begins to

Article 19 take effect, holders of IUP Production Operation and Administrative sanctions in the form of revo- IPR issued before the coming _into force of this Min- cation of IUP Production Operation, IUPK Production isterial Regulation are banned from selling raw ma- Operation, special IUP Production Operation for the terials or ores of minerals abroad within a maximum processing and/or refining, or special IUP Production period of 3 (three) months after this Ministerial Regu- Operation for transportation and sales as referred to lation begins to take effect. Business News 8354-835511-16·2013 35

Article 22 to conduct processing and/or refining. (1) Holders of IUP Exploration and Contract of Work at the phase of exploration and/or feasibility study Article 23 that are working on and/or have worked on a fea- (1) Holders of IUP Exploration and Contract of Work sibility study before the coming into force of this that have realized the phase of construction Ministerial Regulation shall make adjustments to before the coming into force of this Ministerial plans for the minimum standard of the processing Regulation shall make adjustments to plans for and refining of certain mineral mining commodi- the minimum standard of the processing and/ ties as contained in Attachment I, Attachment II, or refining of certain mineral mining commodi- and Attachment Ill which are an integral part of ties as contained in Attachment I, Attachment II, this Ministerial Regulation no later than 3 (three) and Attachment Ill which are an integral part of years after this Ministerial Regulation comes into this Ministerial Regulation no later than 4 (four) force. years after this Ministerial Regulation comes into (2) Holders of IUP Exploration and Contract of Work force. at the phase of exploration and/or feasibility study (2) Holders of IUP Exploration and Contract of Work shall convey progress reports on adjustments to at the phase of construction as referred to in plans for the minimum standard of the process- paragraph ( 1 ) shall convey progress reports on ing and/or refining of certain mineral mining com- adjustments to plans for the minimum standard of modities in the feasibility study as referred to in the processing and/or refining of certain mineral paragraph (1) periodically to the Director General, mining commodities periodically to the Director governor, or regent/mayor according to their re- General, governor, or regent/mayor according to spective authority for evaluation. their respective authority for evaluation. (3) If holders of IUP Exploration and Contract of Work (3) If holders of IUP Exploration and Contract of Work at the phase of exploration and/or feasibility at the phase of construction as referred to in study as referred to in paragraph ( 1) cannot make paragraph ( 1) cannot make adjustments to the adjustments to the minimum standard of the pro- minimum standard of the processing and/or refin- cessing and/or refining of certain mineral mining ing of certain mineral mining commodities accord- commodities according to this Ministerial Regula- ing to this Ministerial Regulation nor realize plans tion nor realize plans for cooperation in process- for cooperation with other parties according to ing and/or refining with other parties according to the legislation shall consult the Director General the legislation shall consult the Director General to conduct processing and/or refining. 36 Business News 8354-835511-16-2013

Article 24 Ministerial Regulation shall make adjustments to ( 1) Holders of IUP Production Operation that have plans for the minimum standard of the processing started production before the coming into force of and refining as contained in Attachment I which this Ministerial Regulation for a variety of certain is an integral part of this Ministerial Regulation no metal mineral, non-metal mineral, and rock com- later than 5 (five) years after Law No. 4/2009 on modities shall make adjustments to plans for the Mineral and Coal Mining comes into force. minimum standard of the processing and refining (2) Holders of contacts of work that have started as contained in Attachment I, Attachment 11, and production shall convey progress reports on ad- Attachment Ill which are an integral part of this justments to plans for the minimum standard of Ministerial Regulation no later than 5 (five) years the processing and/or refining of metal minerals after Law No. 4/2009 on Mineral and Coal Mining as referred to in paragraph ( 1 ) periodically to the comes jnto force. Director General, with copies addressed to the (2) Holders of IUP Production Operation that have governor, and regent/mayor according to their re- started production as referred to in paragraph ( 1 ) spective authority for evaluation. shall convey progress reports on adjustments to (3) If holders of contacts of work cannot make ad- plans for the minimum standard of the processing justments to the minimum standard of process- and/or refining of certain minerals periodically to ing and/or refining of metal minerals as referred the Director General, governor, or regent/mayor to in paragraph ( 1) nor realize plans for coopera- according to their respective authority for evalua- tion with other parties according to the legislation tion. shall consult the Director General to conduct pro- (3) If holders of IUP Production Operation as referred cessing and/or refining. to in paragraph ( 1 ) cannot make adjustments to the minimum standard of processing and/or re- fining according to this Ministerial Regulation nor CHAPTER X realize plans for cooperation with other parties ac- CONCLUSION cording to the legislation shall consult the Direc- Article 26 tor General to conduct processing and/or refining. This Ministerial Regulation shall come into force as from the date of promulgation.

Article 25 For public cognizance, this Ministerial Regula- ( 1 ) Holders of contacts of work that have started tion shall be promulgated by placing it in the State production before the coming into force of this Gazette of the Republic of Indonesia. Business News 6354-&355/ 1-16-2013 37 Stipulated in Jakarta THE REPUBLIC OF INDONESIA, On February 6, 2012 sgd. THE ENERGY AND MINERAL RESOURCES MINISTER AMIR SYAMSUDIN OF THE REPUBLIC OF INDONESIA, sgd STATE GAZETTE OF THE REPUBLIC OF INDONESIA JERO WACIK OF 2012 NUMBER 165 Promulgated in Jakarta Editor's Note : February 6, 2012 Attachments are not carried for technical reasons. THE LAW AND HUMAN RIGHTS MINISTER OF (S) 38 Business News 8354-835511-16-2013