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

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

Email : agungsuleiman@gmail.com

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

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.

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

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

Email : agungsuleiman@gmail.com

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

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

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