Regulation of the Minister of Energy and Mineral Resources of RI. No. 25/2013 amending Regulation of the Minister of Energy and Mineral Resources No. 32/2008 on supply, utilization and trading procedure of biofuel as alternate fuel

4. Presidential Decree Number 71 Year 2005, dat- of Energy and Mineral Resource (State Gazette ed November 16, 2005 concerning Provision fof the Republic of Indonesia Year 2010 Number and Distribution of Particular Type of Oil Fuel as 552) as amended by Regulation of the Minister amended by Presidential Regulation Number 45 of Energy and Mineral Resource Number 22 Year Year 2009, dated October 23, 2009; 2013 (State Gazette Republic of Indonesia Year 2013 Number 1022);

5. Presidential Decree Number 5 Year 2006, dated January 25, 2006, concerning National Policy on DECIDES: Energy; To stipulate:

6. Presidential Decree Number 15 Year 2012, dated REGULATION OF THE MINISTER OF ENERGY AND February 7, 2012, concerning Retail Sales Price MINEREAL RESOURCE CONCERNING REGULATION and Consumer of Particular Type of Oil Fuel; OF THE MINISTER OF ENERGY AND MINERAL RE- SOURCE NUMBER 32 YEAR 2008, ON PROVISION,

7. Presidential Decree Number 59/P Year 2011, dat- UTILIZATION, AND COMMERCIAL SYSTEM OF B10- ed October 18, 2011; FUEL CONSTITUTING AS OTHER TYPE OF FUEL.

8. Regulation of the Minister of Energy and Mineral Article I Resource Number 0007 Year 2005, dated April Some provisions and Regulation of the Minis- 21, April 2005, concerning Requirements and ter of Energy and Mineral Resource Number 32 Year Guideline for Implementation of Business License 2008, concerning Provision, Utiliization, and Com- on Natural Oil and Gas Business Activity; mercial System of Biofuel constituting as other type of fuel (Biofuel), were amended as follows:

9. Regulation of the Minister of Energy and Mineral 1. The provision in Article 1 has been amended so as Resource Number 32 Year 2008 dated Septem- to read as follows: ber 26, 2008, concerning Provision, Utilization, Article 1 and Commercial System of Biofuel constituting as What is meant in this Regulation of Other Type oFuel; the Minister by:

10. Regulation of the Minister of Energy and Mineral 1. Other Fuel shall be fuel in liquid or gas form Resource Number 18 Year 2010 concerning Or- originating from other than Natural Oil and ganization and Work Procedure of the Ministry Gas, and Processed Products. 30 Business News 8504 -8505/ 1-15-2014

2. Biofuel (Biofuel) as Other Type of Fuel shall be 8. Business Entity shall be any legal entity that fuel originating from biofuel and/or produced may be in the form of State-owned Business from other organic material, commercialized Entity, Regional-owned Business Entity, Co- as Other Fuel. operatives, or Private duly established in ac- cordence with the provisions in the statutory

3. Biodiesel (B100) shall be Fatty Acid Methyl regulation. Ester (FAME) product or Mono Alkyl Ester produced from bio and other mass bio pro- 9. Direct User of Oil Fuel shall be private busi- cessed by means of esterifikasi. ness entity using Oil Fuel for own interest and not for commercial purpose.

4. Bioetanol (E100) shall be etanol produced from bio and other mass bio basic material 10. Direct User of Biofuel as Other Type of Fuel processed by means of biotecknology. shall be private or business entity utilizing or using Biofuel as Other Type of Fuel for own

5. Pure Biofuel Oil Minyak Nabati (0100) shall be interest and not for commercial use. product produced from biofuel basis material processed mechanically and by fermentation. 11. Final Consumer shall be ultimate user or uti- lizer of Biofuel in the form of Other Type of

6. Retail Sales Price of Biofuel (Biofuel) as Other Fuel. Type of Fuel shall be Bio Fuel constituting as Other Type of Fuel at the point of delivery, 12. Energy Independent Rural that may produce including margin and taxes. New Energy and Renewable Energy, including Biofuel as Other Type of Fuel for fufillment

7. Biofuel Business Activity (Biofuel) as Other and supply of at least 60% (sixty percent) of Tye of Fuel shall be business activity for pro- the need for energy for the Rural own require- vision and/or distribution of Biofuel (Biofuel) ment. as Other Type of Fuel covers purchase, sale, process, export, and/or transportation and 13. Biofuel Commercial Business Permit as Other storage up to order of Biofuel Biofuel) as Oth- Type of Fuel shall of Biofuel as Other Type of er Type of Fuel to final consumer. Fuel. Business News 85O4-85O5/1- 152O14 I 31

14. Minister shall be minister that handles Admin- 19. Governing Agency shall be agency duly es- istration affairs on natural oil and gas as well tablished to govern and supervise supply and as new energy, renewable energy and pre- distribution of Natural Oil Fuel and Gas and served energy. transportation of Natural Gas through Pipeline in Downstream Business Activity.

15. Director General shall be Director General car- rying out the duty and responsibility on for- 20. Governor shll be Head of Provincial Region. mulating and implementation of policy and technical standardization on new energy, re- 21. Regent shall be Head of Regency Region. newable energy, and preserved energy.

22. Mayor shall be Head of City Region.

16. Director General of Natural Oil and Gas herein- after referred to as Director General of Oil and 2. The provision in Article 3 has been amended so as Gas shall be Director General carrying out the to read as follows: duty and responsibility on formulation, imple- Article 13 mentation, and supervision of policy and tech- (1) To improve utilization of Biofuel as Other Type nical standardization on natural oil and gas. of Fuel in the context of national defense on energy as referred to in Article 2, the Holder

17. Director General of Electric Power hereinaf- of Commercial Business Permit for Oil Fuel, ter referred to as Director General of Electric Direct User of Oil Fuel, and Holder of Busi- Power shall be Director General carrying out ness Permit for Supply of Electric Power still the duty and responsibility on formulation, using Oil Fuel shall be obliged to use Biofuel implementation, and supervision of policy and as Other Type of Fuel in phases. technical standardization on Electric Power. (2) The utilization in Phases of Biofuel as Other

18. Director General of Mineral an Coal hereinaf- Type of Fuel as referred to paragraph (1) shall ter referred to as Director General of Mineral be implemented in accordance with the pro- shall be Director General carrying out the duty visions as specified in the Attachment that and responsibility on formulation, implemen- constitutes inseparable part of this Regulation tation and technical standardization on min- of the Minister. eral and coal. , 32 1 Business News 8504-8505/ 1-15-2014 ila (3) To facilitate Ultimate Consumer in obtain- b. guarantee the standard and quality of (specifi- ing Biofuel constituting as Other Type of Fuel cation) of Biofuel as Other Type of Fuel in ac- that has been mixed with Oil Fuel, the Busi- cordance with the provisions in the statutory ness Entity as Holder of Business Permit for regulation; and Commercial Oil Fuel must be mixed with Bio- fuel as Other Type of Fuel and provide mixing c. utilize and prioritize use of Biofuel as Other facilities and guarantee local distribution. Type of Fuel from local product. (4) The Direct User of Oil Fuel must be mixed 5. The provision in Article 25 has been amended so with Biofuel as Other Type of Fuel from local as to read as follows: product. Article 25 (1) Utilizing ad carrying out Biofuel Business Ac-

3. The provision in Article 4 has been amended so as tivity as Other Type of Fuel, the Director Gen- to read as follows: eral shall exercise management and supervi- Article 4 sion on: Business Entity constituting Holder of Com- a. Biofuel Business Activity (Biofuel) as Other mercial Business Permit for Oil Fuel, Direct User Type of Fuel ; of Oil Fuel, and Holder of Business Permit for Sup- ply of Electric Power still using oil fuel and also b. the standard and quality (specification) of using Biofuel as Other Type of Fuel as referred to Biofuel as Other Type of Fuel being com- in Article 3 is obliged to utilize Biofuel as Other mercialized by Business Entity Holding Type of Fuel from local product. Business Permit for Commercial Biofuel as Other Type of Fuel locally;

4. The provision in Article 5 has been amended so as to read as follows c. exercising pccupational safety and health Article 5 as well as management of living environ- Business Entity operating Biofuel ment; Business Activity as Other Type of Fuel shall be obliged to: d. implementation of the obligation to utilize a. guarantee available Biofuel as Other Type of Biofuel as Other Type of Fue. Fuel for fulfillment of continuous local needs; Business News 8504-8505/ 1-15-2014 33 (2) The Director General and Director General of to in Article 5, Article 18, Article 19, Article Oil and Gas shall exercise management on the 20, Article 22 paragraph (2), of Article 23, obligatory implementation of Biofuel as Other or violation on either of the requirements in Type of Fuel that has been mixed wutg Oil the in the Business License for Commercial Fuel. Biofuel as Other Type of Fuel. (3) The Director General and Director General of (2) The administrative penalty referred to para- Electric Power shall exercise management on graph (1) shall in the form of: the obligatory utilization of Biofuel as Other a. written reminder; Type of Fuel in electric power generator. b. postponement of Biofuel Business Activity as Other Type of Fuel; (4) The Director General and Director General of c. freezing of Business Activity on Commer- Mineral shall exercise management on obliga- cial Biofuel as Other Type of Fuel; tory utilization of Biofuel as Other Type of d. revocation of Business License for Com- Fuel in mineral and coal mining. mercial Biofuel as Other Type of Fuel. (5) The Director General, Director General of Oil (3) The written reminder referred to paragraph and Gas, Director General of Electric Power, (2) letter a must be submitted twice at maxi- Director General of Mineral and Head of Gov- erning Agency shall exercise supervision on implementation of Biofuel as Other Type of (4) If the Holder of Business License for utilizing Fuel according to their respective authority. Commercial Biofuel as Other Type of Fuel up to expiry of the written reminder referred to

6. The provision in Article 26 has been amended so paragraph (3) still fails to excercised its obli- as to read as follows: gation, the Director General on behalf of teh Article 26 Minister shall cahrge administrative penalty in (1) The Director General on behalf of the Minister the form of postponed Business Activity as shall charge administrative penalty on Busi- operator of Other Type of Fuel. ness Entity as Holder of Business License for Commercial Biofuel as Other Type of Fuel (5) Administrative penalty in the form of post- committing violation of tge provision referred poned Biofuel Business Activity as Other 14 Business News 8504-8505/1-15-2014 Type of Fuel as referred to paragraph (4) shall the Business License for conducting the Com- be charged for maximum period of three (3) mercial Biofuel as Other Type of Fuel. months.

8. The provision in Article 27 has been amended so (6) If Biofuel Commercial Business Activity exer- as to read: Article 27 cised as Other Type of Fuel fails to comply (1) As proposed by the Director General, Director with the provisions referred to paragraph (5), General of Oil and Gas on behalf of the Min- the Director General on behalf of the Minister ister shall charge administrative penalty on may freeze the Biofuel Business Activity as the Holder of Business License for conduct- Other Type of Fuel. ing Biofuel Commercial Business Activity that violates the provisions in Article 3 paragraph

7. Insert in between Article 26 and Article 27 one (1) or paragraph (3). (1) new Article, namely Article 26A so as to read as follows: (2) The administrative penalty referred to para- Article 26A graph (1) will be charged in accordance with (1) If after issuing written reminder, the post- the provisions in the statutory regulation. poned and freezing activity referred to in Ar- ticle 26, the Holder of Business License for Article II conducting Biofuel Commercial as Other Type This Regulation of the Minister comes to force of Fuel is given opportunity to eliminate the on September 1, 2013. violation committed or comply with the re- quirements to be complied within 60 (sixty) For public cognizance, this Regulation of the days at the longest effective as of the freez- Minister shall be announced by placing it in the State ing action takes effect. Gazette Republic of Indonesia. (2) it atter expiry ot the 60 (sixty) days referred Stipulated di Jakarta to paragraph (1), the Holder of Business Li- Dated August 28, 2013 cense for Commercial Biofuel as Other Fuel MINISTER OF ENERGY AND MINERAL RESOURCE fails to eliminate the violation and comply REPUBLIC OF INDONESIA with the stipulated requirements, the Director sgd. General on behaff of the Minister shaIl revoke JERO WAC1K Business News 8504-8505/1-15-2014 35 Enacted di Jakarta Dated August 29, 2013 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPURLIC OF INDONESIA sgd. AMIR SYAMSUDIN STATE GAZETTE REPUBLIC OF INDONESIA YEAR 2013 NUMBER 1067 ATTACHMENT A. PHASES OF MAXIMUM OBLIGATORY UTILIZATION OF BIODIESEL (B100) AS OIL FUEL MIXTURE. Types Sept Jan Jan Jan Jan Jan Remark 2013 2014 2015 2016 2020 2025 Household - - - - - - Indefinite Term PSO Transportation 10% 10% 10% 20% 20% 25% against needs total No. PSO Transportation 3% 10% 10% 20% 20% 25% against needs total Commercial and Industry 5% 10% 10% 20% 20% 25% against needs total Electric Power Generator 7,5% 20% 25% 30% 30% 30% against needs total 36 1 Business News 8504-8505/1-15-2014 GOVERNMENT REGULATIONS B. PHASES OF MINIMUM OBLIGATORY UTILIZATION OF BIOETANOL (E100) AS OIL FUELD MIXTURE Types Sept Jan Jan Jan Jan Jan Remark 2013 2014 2015 2016 2020 2025 Household - - - - indefinite Term PSO Transportation - 0,5% 1% 2% 5% 20% against needs total Non PSO Transportation 1% 1% 2% 5% 10% 20% against needs total Industry and Commercial - 1% 2% 5% 10% 20% againts needs total Electric Power Generator - - - - - - againts needs total C. PHASES OF MINIMUM OBLIGATORY UTILIZATION OF PURE BIOFUEL (0100) AS OIL FUEL MIXTURE Types Type of Sept Jan Jan Jan Jan Jan Remark Sector 2013 2014 2015 2016 2020 2025 Household - - - - - - Indefinite Term Industry & Industry 1% 5% 10% 20% 20% 20% againts needs Tansportation total (Low and Sea - 5% 10% 20% 20% 20% against needs medium speed Transportation total engine) Air - - - 2% 3% 5% against needs Transportation total Electric Power Generator 1% 6% 15% 20% 20% 20% against needs total MINISTER OF ENERGY AND MINERAL RESOURCE REPUBLIC OF INDONESIA Sgd. JERO WACIIK (MA) Business News 8504-8505/1-15-2014 37