Regulation of the Minister of Energy and Mineral Resources of RI No. 08/2014 providing for supply and distribution of fuel gas for transportation on land

Article 6 and Article 16 of Presidential Regulation plement to Statute Book of the Republic of Indo- Number 64 Year 201 2 on Provision, Distribution and nesia Number 4996); Pricing of Fuel Gas for Land Transportation, it is nec- 4. Presidential Regulation Number 64 Year 201 2 on essary to stipulate a regulation of of the Minister of Provision, Distribution and Pricing of Fuel Gas for Energy and Mineral Resources on Provision and Distri- Land Transportation (Statute Book of the Repub- bution of Fuel Gas for Land Transportation; lic of Indonesia Year 2012 Number 137); 5. Presidential Decree Number 59/P Year 2011 dat- In view of: ed October 18, 2011; 1. Law Number 22 Year 2001 on Oil and Natural 6. Regulation of the Minister of Energy and Mineral Gas (Statute Book of the Republic of Indonesia Resources Number 8 Year 2010 on Organization Year 2001 Number 136, Supplement to Statute and Working Mechanism of the Ministry of Ener- Book of the Republic of Indonesia Number 4152); gy and Mineral Resources (State Gazettee of the 2. Law Number 30 Year 2007 on Energy (Statute Republic of Indonesia Year 2010 Number 552) as Book of the Republic of Indonesia Year 2001 already amended by Regulation of the Minister of Number 96, Supplement to Statute Book of the Energy and Mineral Resources Number 22 Year Republic of Indonesia Number 4746); 2013 (State Gazette of the Republic of Indonesia 3. Government Regulation Number 36 Year 2004 Year 2013 Number 1022); on Downstream Oil and Natural Gas Business Ac- 26 Business News 8651/1-9-2015 - DECIDES: dition and atmosphere temperature is in the form of gas obtained from the mining of oil and natural To stipulate: gas. THE REGULATION OF THE MINISTER OF ENERGY 6. Minister shall be the minister in charge of public AND MINERAL RESOURCES ON PROVISION AND administration affairs in the energy and mineral DISTRIBUTION OF FUEL GAS FOR LAND TRANS- resources sector. PORTATION. 7. Director General shall be the director general assigned and responsible for the formulation of

Article 1 technical policy and standardization in the oil and 1. Fuel gas shall be fuel used in transportation ac- natural gas sector. tivity, which results from natural gas and/or pro- cessed product of oil and natura gas. Article 2 2. Compressed Natural Gas hereinafter abbreviated (1) The Minister shall assign business entity to pro- to CNG shall be fuel gas resulting from natural vide and distribute fuel gas in the form of CNG. gas with the main substance ebing methane (Cl), (2) The assignment to provide and distribute fuel gas which has been compressed and preserved as in the form of CNG as meant in paragraph (1) well as saved at specially pressure vessel to fa- shall be accompanied by the granting of natural cilitate the transportation and storage that can be gas allocation and pricing of natural gas. used as fuel for vehicle. (3) The assignment to the business entity as meant 3. Business Entity shall be a company in the form in paragraph (1) shall be done with the assign- of legal entity undertaking business permanently, ment period 5 (five) years and shall be extend- continuously and established in accordance with able. the provision of legislation and domiciled in the (4) In the event that the business entity already re- territory of the Unitary State of the Republic of ceiving the assignment has not been able to uti- Indonesia. lize natural gas allocation already agreed, other 4. Fuel Gas Filling Station hereinafter abbreviated to business entity securing the assignment may uti- SPBG shall be every place used to provide and lize the natural gas allocation. distribute fuel gas, which is owned or controlled (5) In the case of the assignment to provide and dis- by business entity. tribute fuel gas in the form of CNG as meant in 5. Natural Gas shall be a result of natural process in paragraph (2) being granted to state business en- the form of hydrocarbon, which in pressure con- tity , it may be accompanied by the financing by Business News 8651/1-9-2015 I 27 _ Gr-,vFFNMENT REGULATON the state in accordance with the mechanism as b. the availability and guarantee for the provi- governed in the provision of legislation. sion and distribution of natural gas in an area of assignment.

Article 3 Business entity which is to secure the assign- Article 5 ment as meant in Article 2 shall be obliged to meet (1) Based on result of evaluation by the Director the following requirements: General as meant in Article 4, the Minister shall a. having fuel gas trading business license; stipulate business entity assigned to provide and b. having and/or controlling fuel gas distribution and distribute fuel oil in the form of CNG. provision facilities and infrastructure; (2) The assignment as meant in paragraph (1) shall c. already operating or executing the provision and contain at least: distribution of fuel gas in a region; a. right and obligation of business entity; d. having and/or controlling distribution network as b. volume of fuel gas in the form of CNG; far as specified consumers; c. area of assignment; c. having funding capability in accordance with the d. force majeur; and investment plan; and e. sanction. f. having technical and operational capability of managing SPBG. Article 6 In the framework of providing and distributing

Article 4 fuel gas in the form of CNG in specified region and/or (1) In order to secure the assignment as meant in Ar- region where none of the business entity submit ap- ticle 2 paragraph (1), business entity shall submit plication as business entity to secure the assignment, application for the assignment to provide and dis- the Minister may assign state-owned business entity tribute fuel oil in the form of CNG to the Minister in the field of natural gas to provide and distribute fuel through the Director General. gas in the form of CNG in the said region. (2) The Director General shall evaluate the applica- tion of the business entity as meant in paragraph Article 7 (1) by taking into account: Business entity securing the assignment shall a. the fulfillment of requirement as business en- be obliged to submit report to the Minister through tity to secure the assignment as meant in Ar- the Director General on the provision and distribution ticle 3; and of fuel gas in the form of CNG in the distribution area 28 Business News 8651/1-9-2015 128 ' -11=2:3=1111M ' 116-101 of the said business entity every 3 (three) months or at any time if necessary. Stipulated in Jakarta On March 27, 2014

Article 8 THE MINISTER OF ENERGY AND MINERAL RE- The Director General shall foster, supervise SOURCES OF THE REPUBLIC OF INDONESIA and verify the execution of the assignment to provide sgd. and distribute fuel gas in the form of CNG, among JERO WACIK others: a. realization of the volume of natural gas allocation; Promulgated in Jakarta b. realization of the selling volume of BBG in the On April 1, 2014 form of CNG; THE MINISTER OF LAW AND HUMAN RIGHTS OF c. quality of fuel gas in the form of CNG; THE REPUBLIC OF INDONESIA d. reliability of facilities which are used; and sgd e. oil and natural gas safety. AMIR SYAMSUDIN

Article 9 STATE GAZETTE OF THE REPUBLIC OF INDONESIA The regulation shall come into force as from YEAR 2014 NUMBER 407 the date of promulgation. For public cognizance, the regulation shall be (R) promulgated by placing it in Statte Gazette of the Re- public of Indonesia. Business News 8651/1-9-2015 129