Wednesday, March 11, 2009

Granting Licenses/Permits

GOVERNMENT'S AUTHORITY.

In management of mineral & coal mining, includes among others :

Law No 4 Year 2009

Article 6

Art. 7

Art. 8

CENTRAL Government

Provinsial Government

Regent/ City Government

GRANTING

& Conducting

IUP, development, public conflict settlement and supervision of mining activities which exist at cross provincial area and / or sea area exceeding 12 (twelve) miles from coastal line.(par. 1) f

IUP, development, public conflict settlement and supervision of mining activities crossing regional/city and or sea area 4(four) miles up to 12(twelve) miles (par.1 b.)

IUP & IPR development, public conflict settlement and supervision of mining activities within regional/city and or sea area up to 4 (four) miles. (par.1.b)

IUP, development, public conflict settlement and supervision of mining activities which exist at the cross provincial area and / or sea area exceeding 12 (twelve) miles from the coastal line .(paragraph 1 g)

IUP , development, public conflict settlement and supervision of mining production operations activities crossing regional/city and or sea area 4(four) miles up to 12(twelve) ( par.1 c)

IUP & IPR, development, public conflict settlement and supervision of mining production operations activities within regional/city and or sea area up to 4 (four) miles(par.1.c)

IUP, development, public conflict settlement and supervision of mining activities which has direct environmental impact crossing regent/city and / or sea area exceeding 12 (twelve) miles from the coastal line ( par. 1 .h.)

IUPK Exploration & IUPK Production Operation

IUP, development, public conflict settlement and supervision of mining activities which has direct environmental impact crossing regent/city and / or sea area 4(four) miles up to 12 (twelve) miles ( par. 1. d.)

Evaluating

IUP Production Operation which is issued by the regional Government, which caused environmental damage & which does not apply well mining rules

Thursday, March 05, 2009

Indonesia Significant Points Domestic Interest In Minerals and COAL

NEW ERA OF Indonesian Mining, rulings which changes the COW era to become Permits to conduct the Mining Business Activities.
  • LEGALIZATION & Effect. On 12th January 2009, the New Minerals and Coal Mining Law No 4 Year 2009 had been legalized and signed by the President and being enacted as Law by the Minister Of Justice and Human Rights (New Mineral and Coal Mining Law No.4/2009) This New Minerals and Coal Law No.4/2009 will take into effect as of the date it is enacted as Law as above mentioned.
  • BEGINNING OF NEW ERA. This New Law becomes the NEW ERA of Indonesian Mining Law, which changes the COW Era and the Kuasa Pertambangan (KP) Mining Authority system that has been exercised for the last 40 years since 1967. The COW /KP system has been replaced by an area based permit / licensing system. Under this New Law there are several Permits to conduct the mining business activities which is attached and linked to several classifications of Mining Areas as regulated under such New Minerals and Coal Law No.4/2009
  • AUTHORIZATION. Based on Article 4 of such New Mineral and Coal Mining Law No.4/2009 the Mineral and Coal as the natural resources which is non-renewal is the national wealth which is possessed by the State for the largest prosperity of the people. This authorization of minerals and the coal by the State is performed by the Government and /or the Regional Government.
  • DOMESTIC INTEREST. Article 5 of New Mineral and Coal Mining Law No.4/2009 states that for the national interest, the Government after consultation with the DPR (Peoples’s House of Representative) can determine a policy for the prioritization of minerals and coal for the domestic interest. This national interest can be done by controlling the production and export. In implementing such control, the Government has the authority to determine the amount of production of each commodities per year per province. The Local Government is obliged to comply with the rulings of such amount as determined by the Central Government.
We have also published this at ALLVOICES GLOBAL MEDIA Jakarta, February 5, 2009

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

Blog Law Firm : http://www.sacolaw.blogspot.com

Email : agungsuleiman@gmail.com

Clasification of Mining Area in the New MINERALS AND COAL MINING LAW NO 4 Year 2009

  • The New Minerals & Coal Mining Areas formed several Mining Areas based permits system, which was not found under the previous law :
Chapter I Article 1 There are several meaning /classification of Mining Area :
  • Wilayah Pertambangan /Mining Area, referred to as WP, is an Area which owns potential mineral and/or coal and is not limited with government administration which form part of the national layout (tata ruang)
  • Wilayah Usaha Pertambangan, Mining Business Area, referred as WUP, is part of the WP which had owned availability of data, potential, and /or geological information
  • Wilayah Izin Usaha Pertambangan, Mining Business Area Permit, referred to as WIUP, is an area which granted to the holder of IUP
  • Wilayah Pertambangan Rakyat, People's Mining Area, referred to as WPR, is part of the WP place where the people's mining business activities is conducted
  • Wilayah Pencadangan Negara,State Reservation Area, referred to as WPN, is part of the WP which is reserved for the national strategic interest.
  • Wilayah Usaha Pertambangan Khusus,The Special Mining Business Area, referred to as WUPK, is part of the WPN which can be usahakan (businessed / efforted) .
  • Wilayah Izin Usaha Pertambangan Khusus / The Special Mining Business Area Permit within the WUPK, referred to as WIUPK, is an area which is granted to the holder of IUPK.
Published in ALLVOICES GLOBAL MEDIA

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

Blog Law Firm : http://www.sacolaw.blogspot.com

Email : agungsuleiman@gmail.com

Wednesday, March 04, 2009

NEW MINERALS AND COAL MINING LAW NO 4 Year 2009

  • NEW ERA Indonesian Mining. LAW changes COW Era to become Permits /Licences to conduct the Mining Business Activities in Indonesia

  • It is really interested in studying such New Minerals and Coal Mining Law, since it appears there is a significant change in the arrangement whereby the Government is providing permits /licences to Mining Minerals and Coal activities which according to the writings / articles from the media/ news, it indicates that the concept of Contract Of Work ( "COW") which was made by the Government and the Mining Companies as the basis of the contractual relations and the Kuasa Pertambangan (KP) mechanism, which was practiced for the last 40 years was changed and replaced by this Permits /Licenses of Mining Minerals and Coals.
  • It is interesting to observe this new law, since as a Partner of the Law Firm of Suleiman Agung & Co, ( who operates for more than 10 1/2 Years since June 1998), I was formerly experiencing working as in-house Legal Counsel for 5 Years in PT Freeport Indonesia Company ( PT FI), a cooper USA mining company, who operates its mining operations in Indonesia, where COW was the main agreement between PT FI as the Mining Company and the Government.
  • The other interesting part is because, I was also experiencing working for 5 Years as in-house Legal Counsel in Huffco Indonesia (Virginia Company) a USA Oil and Gas Company who operates in Indonesia, and produces Gas/LNG at Bontang, where Production Sharing Contract (PSC) was being the basis of their presence in conducting the oil and gas operations in Indonesia.
  • all the oil /gas and the mining of minerals and coal are natural resources from Indonesia.
  • The Scheme mechanism treatment in mining such natural resources from Indonesia is really very interesting to be observed, among others from the history of such mining rulings, which were introduced / developed by the various governments/ authorized institution and the people who were represented by their Representatives in the peoples house of Representatives/Parliament.
  • For instance, relating to Oil and Gas, during the Dutch period, the concept which was introduced and recognized is sort of concession, where Private Companies may be granted a concession by the Authorized Institution.
  • When Indonesia stated its independence, based on Article 33(3) of the Indonesian Basic Constitution Law Year 1945 , the oil and gas is the wealth of the people, where, the people will grant Power or Mining Authority to the State to mine such oil and gas, through forming PT Pertamina ( as representing the government /people) during that time , where as the holder of such Mining Authority they can /allowed to enter into a cooperation with private companies.
  • Contract of Work ( COW) was being introduced as the basis of the relation or arrangement between the Government or PT Pertamina with such Oil/Gas Company.
  • In the progress Production Sharing Contract (PSC) was introduced where in the transition period the COW was replaced / amended to become PCS, examples of this, is experienced by PT Stanvac Indonesia.
  • In the COW concept, the Mining Contractor or the Oil/Gas Contrator shall perform the Mining activities, absorb all the expenses and costs and the risks, without any cost recovery mechanism by the Government.
  • Whereas under a PSC arrangement, the Oil/Gas Contractor shall take the risks, and pay all costs and expenses by itself, but shall be cost recovered by the Government or Pertamina/ now BP Migas, after commercial production is declared.
  • One of the most interesting part is that the rulings of oil and gas is differentiated from the rulings of minerals and coal.
  • Having briefly giving some illustration of this matter, while studying this New Minerals and Coal Mining Law, I shall try to forward some significant items, and hope can digest in understanding this new law and shall try to communicate it with the readers of this blog.
This New Minerals and Coal Mining Law No. 4 Year 2009, contains XXVI Chapters and 175 Articles
  • In the Recitals of this New Law its states that Minerals and Coal which is contained in the Indonesian Legal Mining Area of Indonesia is the natural wealth which cannot be renewable as gift from The One ALL Mighty God, has the important role to fulfill the life needs of many people, thus it has to be controlled /possessed by the State to give real value added for the national economy in the effort to reached the people's welfare and prosperous justifiably.
  • the mineral and coal mining is mining business outside the geothermal, oil and gas and land water which has the important role in providing real value added to the national economic growth and sustainable regional development.
  • it considers that the Law No 11 Year 1967 concerning the Regulation of the Basic Mining is no longer in accordance so that changes are required upon the rulings in the mineral and coal mining, which can manage and effort the potential mineral and coal in a manner which is independent, competent, transparent, competitive, efficient, environmental vision, to secure the sustainable national growth.
Based on the above considerations it is needed to form the Mineral and Coal Mining Law. The considerations also refers to Article 5 (1) , Article 20 and Article 33 (2) and (3) of the State Basic Constitution Law 1945.
PERMITS :
  • There are several permits as shown in Chapter I Article 2 namely :
  • Izin Usaha Pertambangan/Mining Business Permit ( IUP) which is the permit to conduct mining business.
  • IUP Explorasi /Exploration Mining Business Permit which is a business permit provided to conduct stages of general survey, exploration and feasibility studies.
  • IUP Operasi Produksi (Production Operation Business Permit) which is business permit provided after the completion of the performance of IUP Explorasi to conduct stages of production operations activities.
  • IzinPertambanganRakyat (IPR) / Peoples Mining Permit which is permit to conduct mining business in the peoples mining territory with the area of limited territory and investment.
  • Izin Usaha Pertambangan Khusus, Special Mining Business Permit (IUPK), which is a permit to conduct mining business in the special mining business permit territory.
  • IUPK Explorasi (Exploration IUPK) which is the business permit provided to conduct general survey, exploration, and the feasibility studies in the special mining business territory
  • IUPK Operasi Produksi (Production Operation IUPK) which is the business permit provided after the completion of the performance of IUPK Explorasi to conduct the stages of production operation in the special mining business territory
Jakarta, March 4, 2009

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

Also published in ALLVOICES GLOBAL MEDIA

Blog Law Firm : http://www.sacolaw.blogspot.com

Email : agungsuleiman@gmail.com

Sunday, March 01, 2009

Business Legal Exposures

  • As business Lawyer you have to be aware of the legal exposures that are involved in the business activities of your Clients.
  • What kind of legal exposures that had been highlighted really depends upon the nature of the business issues transactions that you are being requested by your Client to be prepared and provided.
  • if the issue is that your Client is trying to seek funds which are required to support its business, you then have to make sure that such funds are really available at the right time as been required by your Client to support their business.
  • the time table of funds available and when and how does such funds will be disbursed and made available to your Client is very significant.
  • The other issue that you have to make sure is what kind of arrangements are most beneficial to your Client and the party who is obligated to raise and provide such funds.
  • Are the fund to be treated as loan which had to be repaid back by the fund provider?
  • or are the funds going to be treated as investment injected by the fund provider to be treated as investment and capital paid up subscribed by such new investor.
  • you have also to make sure whether the funds will be allocated in special account which shall be dedicated to the projects of your Clients
  • or will there be a joint account established by both the new investor and your client where joint signature for disbursement of the funds are required.
  • those are some of the elements of the legal exposures that you as a business corporate lawyer must be concerned of.
  • well, the most important and significant part of the deal is how to ensure that the business deal transactions for such project between your Client and the new investor will be mutually beneficiary to both parties.
  • the essence of a business is really how to make success to the" Project" which will benefit all parties concern.
  • As a business lawyer you have to ensure that the transactions are clearly drafted to be communicative as a tool of "Meetings of Minds" by the Parties concerned, which can reflect and express their desires and wants to make the "Business Project" fruit full.
Jakarta, March 1, 2009

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

Blog Law Firm : http://www.sacolaw.blogspot.com

Email : agungsuleiman@gmail.com

Saturday, February 21, 2009

OPTIMIST DURING GLOBAL ECONOMIC CRISIS

  • Yes, we have to be optimist
  • we must not be pessimist
  • the world depends on our view of thinking
  • we must not be unsure with our selves
  • even though our cash flow is critical it does not mean that we have to give up
  • don't through your towel in the ringside
  • we must face the reality in life
  • the global crisis is hitting many countries
  • the ups and downs in this life cycle including the cash flow of your organization/vehicle device is normal
  • even a big country like the USA is suffering Economic Crisis
  • there was a stimulus package of around USD 78o billion that was being injected to stimulate its cash flows
  • what is astonishing is that a country like Japan was also hit by the global crisis
  • I saw on TV in CNN there were a long line of unemployed person who are in line to get ticket for food within this 2 months, since Japan depends heavily its revenue from its exports
  • since the purchasing power of the people in many countries were badly hit, there are many employees and workers that have to be laid off
  • even big news papers are facing financial problems
  • the big issue is than how must we react on this kind of global crisis situation
  • I believe that we have to optimist
  • if we are optimist and positive with our selves than at least we can control our mind and body
  • your business vehicle or organization regardless of the size, is operated by a human being
  • thus this human being which happens to be you as the operator of such vehicle or device must have a good and positive attitude
  • we must not be quitter
  • we must not be losers
  • we have to be rich with ideas and positive ideas
  • as long as we are alive there are plenty of energies that lies within our self which were being built in by the Creator in our soul and body and mind
  • we must not surrender
  • yes, we must face the reality
  • reality means among others that your real cash flow has to continue
  • you need air to breath
  • you need water to live
  • you need motivation and purpose to continue your live
  • as long as we are still given breath by the All Mighty, it means that there is still hope for us to survive and leave
  • thus we have to consolidate our selves to keep on moving
  • the significant point is that you have to manage your mind, body soul and spirit
  • Keep you spirit high
  • the continuity of this vehicle/organization driven by you depends on your high spirit and willingness to survive
  • Don't look at others but look at your self
  • the spirit and motivitaion lies within yourself
  • you have to really focus and seek within your inner power
  • which lies within your self
  • Cheers

Saturday, February 21, 2009 revised Saturday Feb 28, 2009

18.30

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

Blog Law Firm : http://www.sacolaw.blogspot.com

Email : agungsuleiman@gmail.com


Saturday, February 14, 2009

Glance Snapshot - election in Indonesia

  • Hi Long Time no see
  • How is business
  • Well we are all trying to survive in this new Era of 2009
  • Its already the month of February so it is already the 2nd month of Year 2009
  • Frankly speaking I am quite busy with my work
  • That is one of the reason I had been off from this blog for quite a while
  • It is election time in Indonesia
  • The politic climate in Indonesia is getting hot know
  • many comments and new political issues pop up in the media
  • There are several new Parties popping up in the advertisement
  • several of the candidates are former general in the military of Indonesia
  • So there are several religion back grounds, military back grounds, nationalist backgrounds most are the break up of the former Sukarno ideologies Party, secular backgrounds, labor backgrounds, and professional intellectual background.
  • It is really interesting if we observe the development of democracy in Indonesia which sometimes appears sort of a "demo crazy"
  • There are also many political comedians shows in the TV media which we never can imagine could happen during the former Suharto Era.
  • In this shows, we can see that we are free to critic the still existing President in power.
  • This is really happening in Indonesia
  • Even though most of us sometimes are really bored with the members of the People House Representatives who frequently are more self centered and thinking about their own life style, on the other side of the coin we can see that Indonesia is really on the democracy era.
  • In the reality we understand that in order for a Party to campaign, they really need money
  • This also applies to the person who are campaigning himself / herself needs monies in a certain level and degree.
  • Well, in the real world money talks.
  • How do we as layman in the streets in Indonesia must react or do in these development.
  • I think this really depends on the individual to decide since nobody has the power to influence such individual expect if such person are in the position of desperate to have immediate in having monies to be able to continue his stomach.
Agung Supomo Suleiman February 14, 2009 14.10 hours Indonesia Western Time

Wednesday, December 17, 2008

New Mining Mineral Coal Law


  • We can read in the newspaper in Jakarta that after having processed through tough discussion for 3 Years and 7 months the House of Representatives (DPR) has approved the Laws Mineral Mining and Coal Tuesday ( 16 Dec,08).
  • According to the news In Kompas today December 2008 in the front page said that such Law had ended the Era of Contract of Work which had been going for 41 Years.
  • This Law replaced the Law No. 11 Year 1967.
  • Through this new Law the performance of Mining is conducted through permits granted by the Government.
  • The change in the mining sectors through permits are crucial in the changes of the ruling of this mining regulations.
  • Most of the fractions in the House of Representatives (DPR) according to the newspaper say their appreciation because the form of permit makes the position of the State above the mining companies.
  • This position is not found under the Contract of Work scheme.
  • Even the decision in approving this new Law is not unanimous such Draft Law was approved.
  • The existing COW are still being honored to maintain the investment environment.
  • The question which may arise is : are there going to be adjustment made to the terms under the existing COW and the Coal Cooperation Agreement to be in accordance with this new Law ?
  • It is really interesting to hear this news, since "Permit" from the legal aspects will have different understanding and legal consequences with " Contracts" .
  • Our experience relating to Mining minerals activities are more based on a "Contract arrangement" between the Government as the "proxy" from the People of Indonesia through "Mining Authority" as the owner of the mining wealth, who enters into a "Contract of Work" with Mining contractors.
  • In a contract situation, both parties who signed the contract are having the same position, even though the Government at the same time has a "Public" function .
  • The terminology of a "permit" may be interpreted as a one side act from a government institution granting a "permit", where such permit is valid for a certain period of time.
  • The Legal Question which may arise is : "Can this permit be revoked by the Government Institution " as the granter of such permit, during the duration of the permit ? We hope this is not the case.
  • For us who are used to experienced contracts and has to switch their minds to "permit' in the mining sector, has to really read the Contents of this New Law.
  • This is significant to ensure that such "Permit" IUP gives assurance to the Mining Investors who spend monies and takes full risks, that they are given certainty of time to make profits from their mining ventures in Indonesia.
  • We noticed, that Mining Minerals Ventures in Indonesia adopted the concept that Minerals Products can only be owned by the Investors or Buyers of such Mineral Products, after such Product passed the point of Export.
  • Before passing the point of Export, such Minerals Products are still owned by the People of Indonesia who has granted the Mining Authority to the Government to mine and develop such Minerals Wealth for the welfare and prosperous of the People pursuant to Article 33 (3) of the Indonesian Basic Constitution.
  • Accordingly, there will always exist a combined and mixed situation where on One Side, The Government has the Public Mission, however at the other side of the Coin, The Mining Investors who are dealing with Government in handling such Mining Minerals and Coal Ventures, has to focus on making profits out of the monies that they spend and incurred in conducting such Mining Ventures;
  • Certainty for Climate Investment Environment for the Mining Investors are significant at one side, however, on the other side, the Government has a Public Mission, to also make sure that there are sufficient monies, from such Mineral Wealth Resources, to make the People of Indonesia as a whole, who has put their trust to the Government, increase their life welfare and prosperous.
Wednesday December 17, 2008
Agung Supomo SuleimanPartner Law Firm Suleiman Agung & Co
Freedom Business Lawyer
Partner Law Firm Suleiman Agung & Co

Points Of DRAFT MINERAL COAL LAW

DRAFT MINERAL COAL

1. The Mining consist of radioactive mineral, metal and coal mineral, non metal and stone mineral.

2. There is only one mining business permit (IUP) which is issued by the Government for a certain area ( there is no more contract between company and the Government)

3. The permit is issued through tender process with the same treatment and transparency principal.

4. The Permit system is simplified to become two parts. First Part : Exploration Permit ( which includes GS, exploration and FS.Secondly L Operational which includes construction, mining, development, transportation and sale)

5. Environmental protection aspect (reclamation and post mining)

6. Observing Community Development mainly to increase the public society surrounding the mining

7. KP, KK, PK3B, SIPD, SIPR which are already issued shall still be valid until the expiration of the contract

Friday, December 12, 2008

Global Recessions At the Ending of 2008

  • Well it is near the end of Year 2008
  • It is already the 12Th of December 2008
  • I have just deliver my legal service tasks to my Client.
  • Wauw, interesting isn't, in closing this Year of 2008, I really have to thank GOD for His kindness in giving us the opportunities to still be strong and healthy which enable us to provide our legal works to our Clients, which hopefully will benefit the surroundings and stockholders of our Client.
  • It is really interesting because your Clients appears to be always experimenting new ventures which really inspired us as Business Lawyers how to behave and react in facing the global recession which are occurring in this world.
  • One of the issue which pop up is whether this global recession is caused by "Reasons beyond our control or Acts of God or whether it is caused by human error.
  • We have to draw the line between these two causes.
  • What is also interesting is that this Global Recessions started from the Country where "Free market" control the business.
  • However, Governments Involvements and Bail Outs or Financing Interventions by the Government are being called to assist this 3 Major Auto Companies which according to CNN are facing "real financial problems".
  • So the Big Questions, which arise, is " whether Free Market" still applies ?
  • It also appears that the pride of a Nation is at stake, since the 3 Major Car Companies are requesting to be assisted by the Government to avoid bankruptcy.
  • The whole world are watching closely to the outcome and results of such dilemma situation
  • 3 Generations working in such Car Companies are at stack and are interviewed in CNN.
  • It appears, from the news in CNN today that The Senate has turned down such bail out request.
  • According to CNN, this will effect the shares price on this Friday morning in USA.
  • In Indonesia we have experienced Economy Crisis since Year 1998, 10 Years ago, where Indonesia managed to survive.
  • And now at the end of 2008 Indonesia may be affected by the Global Recessions emerging from USA.
  • This Global Recessions had affected many Regions in this World including our neighbour countries.
  • Unemployment will increase.
  • For me myself, I have started being independent by opening my own Law Firm starting from June 1st in the Year of 1998, when Recessions hits Indonesia which started from Thailand.
  • Thus, I am among many of the Indonesians who experienced in trying really hard to cope and manage ourselves to keep on surviving during this Economic Recessions.
  • We hope that we can all survive and take lessons from our 10 Years of experience since the First Economic Recessions hits Indonesia in 1998 in this coming 2nd Economic Recessions.

Wednesday, December 10, 2008

Practitioner Business Lawyer

  • Yes, I really realize that from the progress of my writing in this Blog it helps me to identify who I am as a profession.
  • I am a practitioner Business Lawyer
  • Why is that so?
  • Because most of my time for this 10 1/2 years I am really practicing myself as a Business Lawyer.
  • By experiencing in assisting the business and entrepreneur in their work, I became more aware that honesty and truth worthiness is the key words of conducting continuous sustainable business ventures.
  • Each party in a contractual transactions has to make their best efforts in getting the best deal they could reached in a certain given time by reaching and closing a deal which will create jobs opportunity for many professions and persons.
  • Each party are given their chances to view from several angles and perspectives before they reached a mutually agreed transactions.
  • Nothing in this world is perfect.
  • Having the same given time by nature, each party are bound to accept the best terms and conditions which they can reach to sign the deal.
  • There are always risks in entering into a contractual arrangements between the parties.
  • But by making the right decisions after viewing all the given possibilities at a certain given time, the management has to succeed in taking and making the right decisions after getting all the necessary inputs from several aspects and angles.
  • It is better to make a decision compared to an attitude of being afraid of making the necessary corporate actions.
  • We as professional business lawyers are really expected to make our best firm legal decisions and legal advices as well as legal steps which are necessary to be taken, in a certain given time, since "time is in the essence" for businessmen in making their business management decisions.
  • To enable such Business Lawyers to make such moves, such Lawyer has to be backed up with knowledge, experience, skills and positive attitudes as well as "mental bravery" to make the necessary legal actions to support the management in pursuing their goals and achievements for the benefits of all the stakeholders.
  • Well, having said the above, let us from this very moment "start" acting and performing ourselves to be a smart business lawyer, which will benefit, the business venture to start its business operations, by giving them the proper and timely legal advices, to maximize their benefits, to their surrounding community as a whole.
Cheers.
Agung Supomo Suleiman Partner Law Firm Suleiman Agung & Co Sunday, December 7, 2008 Business Lawyer Partner Law Firm Suleiman Agung & Co

Wednesday, December 03, 2008

Confident as a Business lawyer

  • Why do you want to be a Business Lawyer ?
  • You have to have a reason why you wanted to be a business lawyer.
  • If you are not confident with yourself, you may forget your dream to be a business lawyer.
  • Why is it so?
  • Well the reason is very simple and straight forward : How can you advise your Business Client if you are not sure about yourself.
  • Your Client is taking risk in choosing you to be their business lawyer.
  • Their business interests from the legal aspects are really very significant part of their overall corporate actions in making their business judgement and business deal.
  • In order for your Client to sleep tight at night, they want to be sure that their business interests particularly when they are having a deal with their business counter part, are well protected to ensure that their business decisions are well accommodated and incorporated in their business transactions with their counter business partner.
  • To ensure that such goal and achievement are fullfilled, such Client needs the assistant from a professional business lawyer who can lead their way and visions from the legal perspective.
  • Accordingly, you as the Business lawyer have to equipped your self with the knowledge and skill including the "self confidence" within your self to give the level comfort to your Client.
Cheers Agung Supomo Suleiman Partner Business Lawyer Partner Law Firm Suleiman Agung & Co

Law Firm’s Blog http://www.sacolaw.blogspot.com

Email : agungsacolaw@telkom.net

Saturday, November 29, 2008

Enjoy Drafting Commercial Contracts

  • Drafting Business Commercial agreements
  • Well as a Business Lawyer it is really interesting in drafting and preparing agreements for your Clients.
  • The interesting part of drafting for me as a Business Corporate Lawyer, is because I really love and enjoy experimenting making clauses and provisions which is actually, the art of accommodating our Clients wants to protect their business interests since every pennies of their monies are really worth to be protected in order to maintain the continuity of their business operations.
  • From my experience in assisting our Clients, I understand that they are really rich with new ideas to develop their business.
  • It appears that they never are asleep and are always waiting for new ventures and ideas in setting up and growing their business.
  • It makes us always being inspired by our Business Clients, since they are always seeking for new ventures and opportunities.
  • We as business lawyers have to be smart and must always maintain and enriched ourselves with alternatives ideas and ways to accommodate our Client wants and needs.
  • Why am I really interested in helping our business clients ideas, is because if we can develop in making an agreement which could accommodate their wants in entering into an arrangement with their co investors or counterpart , this will result a ground for our Clients to visualize their business wants and visions, through a proposal written agreement with their co partners or business counter part, which will than be responded by their co partner or co business counter part to incorporate their counter business ideas.
  • These will be followed by several meetings and negotiations between the relevant parties, which will involved the management, technical, commercial, tax, lawyer and other related professions.
  • Accordingly, under a certain cooperation agreement relating to certain business ventures, we usually have to be aware of the commercial aspects, the respective technical aspects, business legal aspects and other relevant aspects.
  • The most important thing that you as a Commercial Lawyer has to do is to really to understand what your Clients wants, wishes and visions.
  • Thus you have to capture and really capture their business visions and goals.
  • Once you have digest their wants and visions, we as Corporate Lawyers will than have to make our best efforts to translate their vision, wishes and wants through the legal agreements that you drafting, in order to assist your Clients wants.
  • if at the end of the day, such negotiated Commercial Agreements are signed on the closing and signing date, this will be the embryo of the new venture which will results new jobs and opportunities and will absorb many workers and professions engaged in such new established ventures and thus with the help of the ALL Mighty, this new venture, may feed many families, kids of such involved people, and makes the lives cycles continue in moving its part;
  • As a Corporate lawyer the above tasks are really very challenging jobs for us.
  • It makes us as Corporate Lawyers really feel alive, maybe it is comparable or the same as painters, who likes to paint, what they captured from their perspective and translate into paintings on their canvas with their paint brush, or photographers or film makers, who can professionally capture this life cycles with their photograph instruments.
Cheers Sunday November 29, 2008 18.20 Agung Supomo Suleiman Partner Business Lawyer Partner Law Firm Suleiman Agung & Co

Law Firm’s Blog http://www.sacolaw.blogspot.com

Email : agungsacolaw@telkom.net

Wednesday, November 12, 2008

DMO ON COAL Producers IN Indonesia

  • I read in the News Paper Kompas dated 11 November, that there is going to be a Domestic Market Obligation (DMO), 20-60 million ton per year, shall be stipulated at the latest of December 2008.
  • This amount can be changed in accordance with the real needs movement domestically.
  • It is said that such was the statement from the Director Mineral Program Development Coal, and Geothermal Department of Energy and Mineral Power Resources (Direktur Pembinaan Program Mineral, (ESDM), Sukma Saleh Hasibuan, Monday 10/11) in Cirebon.
  • The production of Coal is 200 million ton per year.
  • The draft of the Ministerial of ESDM relating to this DMO appears to be nearly final.
  • The rulings of this DMO among others includes ruling the minimum DMO coal sales ( PMPBDN) for the entire coal producer in Indonesia.
  • Whereas, the coal mining companies with qualification of coal types which are not matching for the DMO is subject to certain compensation value in the form of fulfilling transfer quota PMPBDN.
  • With Coal DMO, there will be a guarantee of standard price of DMO.
  • Such sources says that according to the Coordinator Committee Securing the State Assets Marwan Batubara the rulings of DMO has to be immediately determined because the coal stock for the State Electricity (PT PLN) is decreasing.
  • According to him the rulings on the DMO must be adjusted with the State financial strenght and the public interest as the user of the PLN services.
  • Meanwhile, the conversion program of coal becoming gas or coal gasification as the mixed fuel source for the Diesel Electricity Power Plant (PLTD) is merely effective to be developed for the territory of Kalimantan and Sumatera.
  • Such Kompas newspaper says that the PLN Expertise Functional Service and Production, Sadar Tobing emphasize that the usage of coal gas for the PLTD territory is geared to the PLTD territory which is near to the mining location, namely West Sumatera (Sumatera Barat), South Sumatera, and Kalimantan. This is to save the transportation cost and storage effectiveness.
  • The Example Project coal gasification in Paliman, Cirebon, is being developed by PLN to gether with the Mineral and Coal Research and Development Centre together with PT Coal Gas Indonesia.
  • Coal Gasification is using the low calorie coal 4.500-5.000 calorie, 6-50 millimeter diameter
  • The usage of the coal gas shall substitute 70% of solar usage.
  • From the PLN test, the usage of coal gasification as solar mixed for PLTD with 130 Kilowatt Power can safe the solar consumption 63%.
Quoted from the Kompas Newspaper of 11 November 2008 by Agung Supomo Suleiman Partner Business Lawyer

Partner Law Firm Suleiman Agung & Co

Law Firm’s Blog http://www.sacolaw.blogspot.com

Email : agungsacolaw@telkom.net

Mobile Phone : 0816830647

Saturday, November 08, 2008

Snapshots on Oil and Gas Rules

  • Based on the considerations of the Law No. 22 Year 2001, the National Development has to be directed to achieve the peoples prosperity by conducting the reformation of all fields of the nation and state based on the Pancasila and the Indonesian Constitution 1945.
  • For Foreigners readers, I would like to inform that Pancasila is the five principles of the Indonesian people and State which is being used as the motto to unite the various ethnics and background culture found in Indonesia.
  • Whereas the Indonesian Constitution 1945, was the Constitution which was established and agreed by the founding fathers of this Nation, during the period when Indonesia was formed after its Independent day.
  • The oil and gas is the strategic nature resources which are non-renewable which is controlled by the State and is the vital commodity which controls the mainstream live of the majority people and has an important role in the national economy so that the management has to maximize in contributing the welfare and prosperity of the people.
  • the oil and gas activities has an important role in giving the real value added to the growth and continuity of of the national economic.
  • The Law No.44 Prp.Year 1960 concerning Oil and Gas, the Laws No. 15 Year 1962 concerning the stipulation of the Government Regulation of Replacing Law No.2 Year 1962 concerning the Obligation of the Oil Companies to fulfil the domestic needs and Law No. 8 Year 1971 concerning the State Oil and Gas Enterprise is no longer in accordance with the development of the oil and gas enterprise
  • Whereas, by still considering the national as well as international development the changes of the laws regulations concerning the oil and gas mining which can establish oil and gas enterprise which is self standing, strong, transparent, having the competitive power, efficient, and having the environmental vision, and boost the potential development and national role.
  • Based on the above considerations and in order to give the legal base for the renewal steps and redress the oil and gas performances the Law No. 22 Year 2001 had been formed.
  • After having implemented since the Year 2001, we understand from our sources there is an amendment being proposed and discussed between the House Representative of the People ( DPR ) and the oil and gas Community.

Agung Supomo Suleiman

Partner Law Firm Suleiman Agung & Co

Law Firm’s Blog http://www.sacolaw.blogspot.com

Email : agungsacolaw@telkom.net

Mobile Phone : 0816830647

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