Business Law Certainty

• Yes, business law certainty is very important and significant for investors who are investing their monies and capital in a certain country Including Indonesia.
• Most significant certainty issues relates to divestment issues, certainty of transferring their profits/ dividends to their original country or place of bank where the investors would like to transfer their monies and funds from the place/country they conduct and invest their monies to run its business.
• protection of its investment/capital from the Government, in event of nationalization issues of their business
• wants to have assurance of getting the same treatments as foreign investors with the local national investors
• assuring that investors can place their expertise/foreign professionals/ executives members in the organization of the business entity that they had established / formed to run their business in a certain country.
• certainty of land titles as well as the duration of using / benefiting such land usage by the foreign investors, to ensure sustainability of their place of business in running its business operation in such country.
• employment rules particularly relating to minimum salary, benefits, compensation, right to hire and fire as well as flexibility in engaging the manpower due to the uncertainty of the global economy.

The above items are some of the significant elements which investors may be concerned of before deciding to make investments in a certain place or country. Jakarta, March 16, 2009

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

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

Email : agungsuleiman@gmail.com

agungsacolaw@telkom.net

Glance View Minerals and Coal Mining Law 4 Year 2009

• GLANCE VIEW of the NEW Minerals & Coal Mining Law No. 4 Year 2009

• After having seen in a glance on this New Minerals and Coal Mining Law No. 4 Year 2009, you may found some interesting issues as follows:
• This New Law regulates the issuance of Mining Licenses/Permits which is granted by several level of Government Institutions /Officers relating to the Mining Activates depending on the classification of such Mining Area (WP) and type of Mining Activities.
• This Mining Area (WP) consists of 3 three categories namely:
• (i) WUP (Mining Area which is part of the WP which has contained the availability of data, potential and/or geology information, (ii) WPR (Peoples Mining Area) and (iii) WPN (State Reserves Mining Area).
• This WP is determined by the Central Government, after having coordination with the Regent/District Government and consultation with the Peoples House Of representatives.
• This coordination is conducted by the respective Regional Government based on the data and information which is possessed and owned by the Central Government and the Regional Government.
• Relating to State Reserves Mining Area, it is quite interesting since the Government as a matter of National Strategy with the approval of the Peoples House of Representative with considering the regional aspiration determines this WPN ( State Reserves Mining Area).
• The reservation is related to certain commodities and regional conservation in the framework of maintaining the ecosystem balance and environment.
• The WPN which is determined for certain commodity can be managed (determined) on its wide / extensive of area with the approval of the Peoples House of Representatives.
• Based on the explanation of Article 27 of the Minerals and Coal Mining Law, what is meant by certain commodity are among others : ore, tin, gold, iron, nickel, and bauxite and coal.
• The determination of this WPN for the national interest is to push the national economic growth, national energy and industry strategy endurance, and to increase the national competitiveness in facing the global challenge.
• This Area of WPN which will be developed for certain commodities as described above shall be changed its status to become WUPK ( Special Mining Area which could be developed).
• What makes this issue interesting is because this element of Reserves Mining Area which shall than be changed into the status of WUPK ( Special Mining Area which could be developed) is something new being introduced in this New Minerals and Mining Law No.4 Year 2009.

Jakarta, March 12, 2009

Agung Supomo Suleiman

Senior Partner

Law Firm Suleiman Agung & CO

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

Email : agungsuleiman@gmail.com

agungsacolaw@telkom.net

Scheme of Governments Role Law 4 Year 2009,

GOVERNMENT'S AUTHORITY In management of mineral & coal mining, includes among others :
Mineral & Coal Mining Law No 4 Year 2009
	Article 6	Art. 7	Art. 8
	CENTRAL Government	Provincial Government	Regent / City Government
CONDUCTING	Inventory, survey, research, exploration in framework of getting mineral & coal data and information as material for setting WUP & WPN (par. 1.p)	inventory, survey, research, exploration in framework of getting mineral & coal data & information pursuant to its authority (par.1.e)	inventory, survey, research, exploration in framework of getting mineral & coal data and information (par.1 d)
	managing geology information, mineral & coal potential resources, & mining information in national level (par.1. q)	managing geology information, mineral & coal potential resources, and mining information within regional (daerah) / provincial area ( par.1.f)	managing geology information, mineral & coal potential resources, and mining information within regent (kabupaten) / city ( par.1.f)

Determining ruling law - Indonesian New Minerals & Coal Mining Law 4 Year 2009

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	Provincial Government	Regent / City Government
Determining	National Policy (par.1a)
	making ruling law (par.1b)	making regional ruling law (par.1a)	making regional ruling law (par.1a)
	National standard, guidance, criteria (par.1c)
	National Mineral & Coal Mining License System (par.1d)
	WP after coordination with Regional Government and consultation with House Of Peoples Representatives (par.1e)

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

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

agungsacolaw@telkom.net

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

agungsacolaw@telkom.net