Regulation of the Minister of Energy and Mineral Resources of RI No. 1/2013 on the Supervision upon the Organization of Mining Business Management performed by the Government of Province and Distict/City

Article 3 2. has obtained approval from the holder of (1) The Director General performs supervision upon rights over land in accordance to the law the compliance towards the laws and regulations and regulation; by regent/major in the framework of decision on 3. has used mapping coordinate system WPR with National Geodetic Datum that has (2) Supervision in the framework of decision on WPR the same parameter as Ellipsoid World by regent/major as meant at paragraph (1) in- Geodetic System; cludes at least: 4. has fulfill criteria on the decision on WPR a. decision on WPR is performed after coordi- accordingly to the laws and regulations; nation with the government of province and and consultation with regency/municipal Regional 5. there has been announcement regarding House of People's Representative; the plan for decision on WPR to the so- b. prior to coordination with the government of ciety in an open manner, at least at ad- province and consultation with regency/mu- ministrative office in the ward/village in nicipal Regional House of People's Represen- WPR location in accordance to the laws tative, as meant at point a, it is obligatory to and regulations. decide location of WPR: Business News 8495/12-20-2013 1 25 GCJVEPt4 ,A,, CtIT REGLILATIOt,IS Second Part the same parameter as Ellipsoid World Decision and Grant of Non-Metal Mineral WIUP and Geodetic System; Rocks WIUP 4. has announce the plan for decision on

Article 4 non-metal mineral WIUP and rocks WIUP (1) The Director General performs supervision upon to society and there is no objection from the compliance towards the laws and regulations the holder of rights over the land; by regent/major in accordance to his/her authority c. processing of non-metal mineral WIUP and in the framework of decision on and grant of non- rocks WIUP application as meant at point a metal mineral WIUP and rocks WIUP. that overlap with metal mineral WIUP and/or (2) Supervision in the framework of decision on and coal WIUP can only be done after obtaining grant of non-metal mineral WIUP and rocks WIUP recommendation from the Director General by regent/major as meant at paragraph (1) in- and obtaining consideration from the holder cludes at least: of metal mineral IUP and/or coal IUP based on a. the processing of non-metal mineral WIUP agreement on joint land utilization; and rocks WIUP application submitted by d. the issuance of decision to approve or reject business entity, cooperative, or individual can the reserve of non-metal mineral WIUP or be done only in non-metal mineral WUP or rocks WIUP to business entity, cooperative, rocks WUP stipulated by the Minister of gov- or individual within 10 (ten) business days ernor in the framework of deconcentration in since the acceptance of complete WIUP appli- accordance to the laws and regulations; cation by considering the provision as meant b. prior to processing the decision on non-metal at point a, point b, and point c; mineral WIUP and rocks WIUP, it is obligatory e. the issuance of letter of instruction to pay to confirm the area map and coordinate as the reserve fee of WIUP to state treasury ad- meant at point a: dressed to business entity, cooperative, or in- 1. not overlapping with other IUP with simi- dividual that has been approved as meant at lar mining commodities; point d; and 2. not overlapping with area administrative f. the grant of non-metal mineral WIUP or rocks border outside his/her authority; WIUP to WIUP applicant as meant at point a 3. has used mapping coordinate system after the applicant of WIUP provides the re- with National Geodetic Datum that has ceipt of territory reserve fee to state treasury. lb Business News 8495/12-20-2013 Third Part (2) Supervision upon the issuance of IPR in the pro- The Grant of Metal Mineral WIUP and Coal WIUP cess of issuance of IPR by regent/major as meant

Article 5 at paragraph (1) includes at least: (1) The Director General performs supervision upon a. in the issuance of IPR on WPR, has arranged the compliance towards the laws and regulations reclamation plan and post-mining plan for ev- by government and regent/major in accordance to ery stipulated WPR based on environmental his/her authority in the framework of granting of documents in accordance to the laws and metal mineral WIUP and coal WIUP. regulations; (2) Supervision in the framework of granting of metal b. the grant of IPR, especially to local society, mineral WIUP and coal WIUP by government and whether individual as well as society groups regent/major as meant at paragraph (1) includes or cooperative consists of local citizens as at least: members based on the application that has a. open announcement of metal mineral WIUP satisfied administrative, technical, and finan- and coal WIUP stipulated by the Minister that cial requirements in accordance to the laws will be auctioned to the business entities, co- and regulations. operatives, and individuals within 3 (three) c. the issuance of the size of territory for 1 (one) months prior to the organization of auction; IPR that can be granted to: b. the formation of auction committee of metal 1. individual, maximum 1 (one) hectare; mineral WIUP and coal WIUP; 2. group of society, maximum 5 (five) hect- c. the organization of auction of metal mineral ares; and/or WIUP and coal WIUP in accordance to auc- 3. cooperative, as much as 10 (ten) hect- tion procedures; and ares. d. the decision on auction winner of metal min- d. decision on the term of IPR maximum 5 (five) eral WIUP and coal WIUP. years and can be extended; and e. decision on reclamation plan and post-mining Fourth Part plan for the holder of IPR based on approved The Issuance of IPR environmental documents.

Article 6 (1) The Director General performs supervision upon Fifth Part the compliance towards the laws and regulations The Issuance of IUP by regent/major in the framework issuance of IPR. Paragraph 1 Business News 8495112-20-2013 27 The Issuance of Non-Metal Mineral IUP Paragraph 2 and Rocks IUP The Issuance of Metal Mineral IUP and Coal IUP

Article 7 Article 8 (1) The Director General performs supervision upon (1) The Director General performs supervision upon the compliance towards the laws and regulations the compliance towards the laws and regulations by government and regent/major in accordance to by government and regent/major in accordance to his/her authority in the framework of the issuance his/her authority in the framework of issuance of of non-metal mineral IUP and rocks IUP. metal mineral IUP and coal IUP. (2) Supervision in the framework of issuance of non- (2) Supervision in the framework of issuance of met- metal mineral IUP and rocks IUP by government al mineral IUP and coal IUP by government and and regent/major as meant at paragraph (1) in- regent/major as meant at paragraph (1) includes cludes at least: at least: a. the processing of IUP application submitted a. the processing of IUP application submitted by business entities, cooperatives, or individ- by the winner of auction of metal mineral or uals; coal WIUP; b. the issuance of Exploration IUP and Produc- b. the issuance of IUP to the auction winner of tion Operation IUP of non-metal mineral and WIUP of metal mineral or coal, whose appli- rocks to business entities, cooperatives, and cation has fulfilled administrative, technical, individuals that have satisfied administra- environmental, and financial requirements in tive, technical, financial, and environmental accordance to the laws and regulations; requirements in accordance to the laws and c. attachment of decision on the issuance of at regulations; point b that includes attachments of map, c. attachment of decision on the issuance of IUP coordinate, and area of WIUP in accordance as meant at point b that includes attachments auction result of WIUP; of map, coordinate, and area of WIUP based d. the issuance of IUP for only 1 (one) type of on decided WIUP; metal mineral or coal; and d. the issuance of IUP for only 1 (one) type of e. the issuance format of IUP in accordance to non-metal mineral or rocks; and the laws and regulations. e. the issuance format of IUP in accordance to the laws and regulations. Sixth Part The Organization of Development and Supervision 28 Business News 8495/12-20-2013 Activities Performed by the Holder of IPR and IUP 6. planning and implementation of transpor-

Article 9 tation and sale. (1) The Director General performs supervision upon b. conservation of mineral and coal resources, the compliance towards the laws and regulations among others: by government and regent/major in accordance to 1. recovery of mining and processing; his/her authority in the framework of organization 2. management and/or utilization of margin- of development and supervision of mineral and al reserve; coal mining business activities performed by the 3. management and/or utilization of low holder of IPR and IUP. quality coal and low degree mineral; (2) Supervision as meant in paragraph (1) includes 4. management and/or utilization of mineral; the compliance towards the laws and regulations 5. data collection of resources as well as re- by governor and regent/major according to their serve of un-mined mineral and coal; and respective authorities to: 6. data collection and management of re- a. appoint Mining Inspector function official; mainder of processing and purification and result. b. appoint Supervising Official, assigned to per- c. mining safety and health, among others : form supervision upon mineral and coal min- 1. work safety; ing business activities performed by the hold- 2. work health; er of IPR and IUP. 3. work environment; and (3) Supervision performed by Mining Inspector func- 4. work safety and health management sys- tional official as at paragraph (2) point, a at least tem. includes: d. mining operation safety, among others: a. mining technical, among others: 1. system and implementation of mainte- 1. implementation of exploration technical; nance/care of mining infrastructure, facili- 2. calculation of resources and reserve; ties, and equipments; 3. planning and implementation of construc- 2. installation security; tion including examination upon mining 3. fitness of mining infrastructure, facilities, equipments (commissioning); and equipments; 4. planning and implementation of mining; 4. technical staff competency; and 5. planning and implementation of process- 5. evaluation upon report of mining techni- ing and purification; cal review result. Business News 8495/ 12-20-2013 GOVERNMEt.4T REGULATIONS e. management of environment, reclamation, 5. planning and realization of non-tax state and post-mining, among others: revenue; and 1. environmental management and super- 6. mineral and/or coal processing and purifi- vision in accordance to environmental cation cost. management documents or environmen- b. Financial, among others: tal licenses that have been obtained and 1. budgeting; approved; 2. realization of budget; 2. arrangement, recovery, and improvement 3. realization of investment; and of land in accordance to its allotment; 4. fulfillment of obligatory payment. 1 3. decision on and disbursement of reclama- c. management of mineral and coal data amon0 i tion guarantee; others includes supervision upon data and/ 4. post-mining management; or information revenues, administration, pro-i 5. decision on and disbursement of post- cessing, arrangement, storage, maintenance; mining guarantee; and and elimination activities; , 6. fulfillment of environmental quality stan- d. utilization of domestic engineering goods, ser, dards in accordance to the laws and regu- vices, technologies, and competence as well lations. as design among others performed on the f. mastery, development, and application of implementation of utilization of engineering , mineral and coal mining technologies. goods, services, technologies, and compe-i (4) Supervision performed by Supervising Official tence as well as design; , as at meant at paragraph (2) point b, at least in- e. development of mining technical staff, among cludes: others: a. marketing, among others: 1. implementation of development program; 1. realization of production and realization 2. implementation of competence test; and of sale, including quality and quantity as 3. development cost plan. well as price of mineral and coal; f. development and empowerment of local sock , i 2. obligation to fulfill domestic coal and min- ety, among others: I eral needs; 1. Society development and empowermen i I 3. plan and realization of mineral and coal program; 1 1 1 sale contract; 2. implementation of society developmen 4. sale cost spent; and empowerment; and / Business News 8495/12-20-2013 • _ G O'VERNmENT itECiLiLAT101 ,1.5 3. society development and empowerment Article 10 cost. (1) The result of supervision performed by the Direc- g. other activities in mining business activity tor General as meant in Article 2 is submitted sector related to public interests, among oth- to governor and regent/major in accordance to ers: their respective authorities and its copies are for- 1. public facilities built by the holder of IUP warded to the Ministry of Domestic Affairs and/or for society in the surrounding mining related institution/s. area; and (2) Governor or regent/major in accordance to their 2. financing the development or providing respective authorities are obliged to follow up su- public facilities as meant at number 1. pervision result as meant at paragraph (1). h. implementation of activities in accordance to (3) Director General with the Ministry of Domestic IUP or IPR, among others: Affairs and/or related institutions perform moni- 1. size of territory; toring upon the implementation of the follow up 2. mining location; of supervision result as meant at paragraph (2) in 3. processing and purification location; accordance to the laws and regulations. 4. activities stages period; 5. land disputes settlement; CHAPTER V 6. disputes settlement; and TRANSITIONAL PROVISIONS 7. mastery, development, and application of Article 11 mineral and coal mining technologies. At the time this Minister Regulation starts to i. quantity, type, and quality of mining business take effect: result, among others: a. Supervision that has been performed by the Direc- 1. types of mining commodities; tor General through evaluation and reconciliation 2. production quantity and quality for every of IUP and IPR nationally towards the issuance of mining location; licensing in the form of: 3. quantity and quality of cleaning and/or 1. Mining Rights, Regional Mining License, and processing and purification; and People's Mining License issued prior to the 4. run of mine, stockpile, and sale point. application of Law Number 4 Year 2009 by jovernor and/or regent/major in accordance CHAPTER IV o their respective authorities including the FOLLOW UP OF SUPERVISION RESUL idjustment process to be IUP and IPR; Business News 8495/12-20-2013 31 2. IUP issued by governor and/or regent/major fect since the promulgation date. in accordance to their respective authorities For everybody to acknowledge it, ordering the based on the Mining Rights application that promulgation of this Regulation by its placement in has been received by governor or regent/ma- the State Gazette of the Republic of Indonesia. jor and has been allocated territory reserva- tion prior to the issuance of Law Number 4 Stipulated in Jakarta Year 2009, shall remain valid. on 11 January 2013 b. The result of supervision performed by Director THE MINISTER OF ENERGY AND General as meant at point a in the form of an- MINERAL RESOURCES nouncement of Clear and Clean status and issu- THE REPUBLIC OF INDONESIA, ance of Clear and Clean certificate shall remain Signed valid. JEROWACIK c. Upon IUP and IPR that are still in the process of evaluation and verification as meant at point a to Promulgated in Jakarta obtain Clear and Clean status and Clear and Clean on 11 January 2013 certificate, they are processed based on admin- THE MINISTER OF LAW AND HUMAN RIGHTS istrative, technical, environmental, and financial THE REPUBLIC OF INDONESIA, requirements and in accordance to standard op- Signed erational procedure of Clear and Clean. AMIR SYAMSUDIN CHAPTER VI THE STATE GAZETTE OF THE REPUBLIC OF FINAL PROVISIONS INDONESIA

Article 12 YEAR 2013 NUMBER 78 This Ministerial Regulation starts to take ef- ( ) 32