Regulation of the Minister of Energy and Mineral Resources No. 051/2006 on requirements and guidance for commercial business permit for biofuel as alternative fuel

Article 1 9. Governor shall be the Governor acting as the Referred to in this Reaulation of the Minister Government representative in the reQion. as: 1. Alternative Fuel shall be liquid or gas fuelgenerated CHAPTER II other than from the NaturaJ on, Natural Gas and REQUIRfMEHTS AND PROCEDURE fOR Pma!ssed Products. BIOFUEL COMMERCIAL BUSINESS PERMIT

Article 2 2. Biofuetshall be the fueI·generated from the vegetable The corporation running the Commercial material. Business ActMty of Blofuel ascAltemativeFuei shall be obliged to hold the Commercial Business Pennit for 3. Commercial BusIness Permit forBiofuei as AlternatIve Biofuel from the Minister. Blofuel which hereinafter-referred to aslBiofuel COmmercial Business Permit shall be the permit Article 3 granted to the Corporation to conductthe commerdal (l)To.obtain the Commercial Business Permit for Biofuel business activity of Biofuel as Alternative Fuel. as refeITed to in Article 2, the corporatiDn shall submit the application to the Minister through the Director General by enclosing the administrative andtechnical 4. Commerdal Business Actlvfty of Biofuel asA1tetnative data. Fuel shall be the business activity to provide Biofuel as Alternative Fuel comprising the activities of (2)The administrative Data as referred to in paragraph production, purd1as!ng,seIMn§, exportand!orilmport (1) shall consl~ of; as well as. transpOrtation and stOrage through the a. Deed of Incorporation of Corporation and the marketing of Biofuel as Alternative Fuel to the end amendment thereto already ratified by the consumers using a c:ertaih trade mark. competent authority; b. company Profile; 5. Corporatlori. shall be a Company in terms of oorporate c. Taxpayer Reference Number; body running a permanent and continuous type of d. Company Registration.certificate; business and 15 established pursuantto the prevailing e. certificate of Domidleof Corporation; legislation as well as running and having domicile f. Duly stamped written statement on the ability to within the territnry of the Unitary stateof the Republic fulfill the legislation; and of Indonesia. g. Duly stamped written statement on the preparedness for field inspection by the 6. Direct User shall be an Individual and Corporation DirectorateGeneral. usingthe Biofuel asAlternative Fuel for own Interest and otherwise for commercial purpose. (3)The technical data as referred to In paragraph (1) shall consist of: 7. Minister shall be the minister whose tasks and a. source of acquisition of material/Biofuel as responsibilities cover the Oil and Natural Gas business exploited Alternative Fuel; activity. b. standard andquaUty (spedftcatlon) dataon Biofuel as Alternative Fuel tD trade; 8. DirectorGeneral shall be the DirectorGeneral whose c. name and trade name of Biofuel as Alternative tasks and responsibilities cover the Oil and Natural Fuel for retail; Gas business activity. d. business feasibility information; Business News 7591-7592/11-28-2007 e. dUly, . , .. SA e. duly stamped written statement on the ability to on behalf of the Minister shall refuse the application providethe Biofuel as Alternative Fuel; and of the Corporation and give the reasons thereof. 1. Dulystamped written statement on the ability to fulfiH the work safety and tJealth aspect as well as Article 6 enVironmental management. (1) BIOfUeI commerCial 6l!Siness Permit as referred to In

Article 5 shall be provided for the period of at the

Article 4 longest 20 (twenty) years. (l)Dlreetor General shall verify and evaluate the administrative and technical data for the application (2)Blofuel Commercial Business Permit which validity as referred to in Artfcle 3 within the period of at the already expires as referred to in paragraph (1) shall longest 10 (ten) working days. be extendible by proposing the application not later than 60 (sixty) days prior to tile expiration of the (2)Corporatlon shall be obliged to complete the Biofue1 Commerdal Business Permft. administrative and technical data relating to the application as referred to in Article 3 within the period (3)1l1e extension of BlofuelCommercial Business Permit of at the longest 10 (ten) working days as of the as referred to in paragraph (2) may be gfven based I"@Ceipt of notiC"fl. on the company perfonnance and annual evaluation. (3)10 the frame of clarifying the administrative and CHAPTERUI technical data as referred to in Article 3, the Director GUIDANCE FOR BIOFUEL COMEMRQAL BUSINESS General may request the Corporation to hold PERMIT IMPLEMENTATION presentation; Artide7 The corporation hoIcfmg the Biofuel Commercial (4)In the eventthe administrative and teehnicatdata as BusIness Permit shall be obliged to ownand/orcontrol referred to in paragraph (2) are already complete over the fadllties and instruments of the Commercial and correct, for the examination of data conformity Business ActIvity of Blofuel as Alternative Fuel. and information on the Corporation plan, a location visit may be conducted. Art:k:le 8 In performing the construction of facUities and (5)Director General shall be obliged to complete the instruments of COmmercial Business ActIVity of Blotuel verification and evaluatfon in at the longest 10 (ten) as Alternative Fuel, the Corporation shall be obliged to: working days after the presentation and receipt of a. use the goods and equipment fulfilling the standard the complete and correct reqUirements and/or In accordance with th~ leyislation; Iocatlon visit. b. adopt the good technical rUle; c. give priority for tile utilization of goods, equipment, Artfde5 service, technology as well as ability for domestic: {l)ln the eventt~ application as referred to in Article engineering and design; 3 already fulfills the requirements, the Director d. give priority for the employment of Indonesian General on behalf of the Minister sholl grant Blofuel manpower by taking into account the utilization of Commercial Business Permit for the CorporatiOn. local manpower in accordance with the required standard of competence; (2)ln the event the application as referred to in Article e. f'nSUrf> Hu"! Wf')rk and l'!nvimnml'!ntalsafety and health; 3 fails to fulftll therequirements, the Director General f. assist the development of the local community. susiness New 7591-7592/11-28-2007 Artide 9 ..... 9A

Article 9 importthe Blofuel asAlternative Fuel directly for own In performing the Commercial Business Actlvity use after obtaining the recommendation from the of Biofuel as Alternative Fuel, the Corporation shall be Minister. obliged to: a. ensure the availabilityof Blofuel as Alternative fuel (2)The direct user Is not allowed to market andlor sale on sustainable basis andgivepriorityfor the domestic and purchase Biofuel as Alternative Fuel. need fulfillment; (3)Th@ dir@ct user mark@ting and/or selling and b. ensure and be responsible to the supplier/end user purchasing the Biofuel as Alternative Fuel shall be level for the standard and quality of Biof4el as subjected to sanction in accordance with the Alternative Fuel traded in accordance with the legislation. standardand quality (specification) stipulated by the Minister;

Article 12 c. ensure the selling price of Biofuel as Alternative Fuel (l)Corporation holdioglhe Biofucl CummerdCll6u::;iness to the fair level; Permit may trade the Blofuel as Alternative Fuel to the end consumers. d. ensure the procurementof facility and instrumentof Commercial Business Activity of Biofuel asadequate (2)The all Fuel mixed With Bfofuel as Alternative Fuel Alternative Fuel; can only be traded by the COrporation holding the General Commercial Business Pennlt for Oil Fuel. e. ensure and be responsible for the useof equipment, accuracy and system of the measuring devices used (3)The Blofuel as AlternatiVe Fuel as referred to in fuJfilling the standard in accordance with the paragraph (1) and Oil FueJ mixed as referred to in legislation; paragraph (2) shall fulfill the stanaard and quality (spedflr.ation) stipulated by the Minister. f. own and use the certain name and trade mark of 8iofueI asAltemative Fuet fQr retail; (4)Corporation holdingthe BklfuelCommercial Business Permitin conducting the Commercial Business Aclivit.y g. submit report to the Director General on the of 6~ as AlternatIve Fuel may appointthesupplier implementation ~ the COmmercial Business Activity by glYingtbepriority tathe ~ratives, small-scale of Biofuel as AlternatIve Fuel-on quarterly basis or at bu~ lind/or n.moRal ~ rompany through a any time If reqUired. selectIOn.

Article 10 04APTER.IV In tile eventthe corporatIOn hOlding tne BIOfUeI Commercial Business Permit intends to export and/or UP-BUILDING AND SUPERVISION import the Biofuel as Alternative Fuel, it shaH Obtain the Artide 13 recommenaanon rrom the Minister. (l)Director General shall up-build and supervtse the

Article 11 Commercial Business Activityof Biofuel asAlternative (l)The direct user Of Blofuelas Alternative Fuel may Fuel. Business News 7591~7592f11-28~2007 (2) Director .. " .. lOA (2)Oirector General shall up-build and supervise the Artide 15 standard and quality of Blofuel as A.lternative Fuel In the event it is known that the administrative traded by the domestic Corporation. and technical data submitted by the Corporation as referred to in Artide 3 is not correct, the Director General CHAPTER V on behalf of the Minister revoke the releVant BiofUel ADMINISTRATIVE SANCTION Commercial Business Pennlt.

Article 14

Article 16 (1) DirectorGeneral on behalf of the Ministershall give All arising losses due to the written reprimand, the written reprimand to the COrporation committing suspension and freeZing as well as revocation of Blofuel violation to one of the requirements of Biofuel Commercial Business p~1t as ~Mred to in Arf:i(:les Commercial Business Permit. 14 and 15 shall become the expenses of the relevant Corporation. (2) Withinthe period of 30(thirty) daysafter the written reprimand as referred to in paragraph (I), if sl,Jch CHAPTER VI Corporation still oommits the-violation or repeats the nOSING PROVISION violation, the Director General on behalf of the Article 17 Minister may suspend the Commercial Business (l)The Minister shall delegate the authority to the Pennit for Biofue\ as A.lternatlve Fuelfor the ~iod Governor for proViding the Biofuel Commercial of at the longest3 (three) months. Business Permit with the production capacity up to 10,000 (ten thousand) tons per annum. (3)ln the event the COrporation fails to adhere to the requirements stipulated by the Minister during the (2)The Govemor in providing the Biofuel Commercial suspension periOd as referred to in paragraph (2), BUSiness Permit illS referred to in paragraph (1) shall the Director General on behalf of the Minister may refer to the provisions of this Regulation of the freeze the Commercial Business ActMty for Biofuel Minister. as A.lternatlve fUel for the period of at the longest3 (3)Govemor shall be obliged to submit report to the (three) months. Minister on the proVIding of Biofllel commertial Business Permit as referred to in paragraph (1) semi (4)ln the event of the providing of written repnmand, annually and/or at any timeff required. suspension and activity freeze as referred tel In paragraphs (11, (2} and (3), the corporationis gIVen Artide 18 the opportunItY to eHmJnate the violauon committed This Regulation of Mlnist~r shall become or fulfill the requirements asalready stipulated within effective as of the date of stipulation. the period of at the longest of 60 (sixty) days as of the freezing. StIpulated In Jakarta on OCtober 10, 2006 (5)In the event of the lapse of the period of 60 (sixty) THE MINISTER OF days as referred to In paragraph (4), the COrporation ENERGY AND MINERAL RESOURCES falls to eliminate the violation and fulfill the stipulated sgd requirements, the Director General on behalf of the PURNOMO YUSGIANTORO Minister mayrevoke the relevant Blofuel Cumrnen;:Ja1 Business Permit. -==={ RY )====- Business News 7591-7592/11-28-2007