New Government Regulation No. 24 Year 2012

Recently, the Government of the Republic of Indonesia had issued Government Regulation No.24 Year 2012, which regulates amendment to the Government Regulation No. 23 Year 2010. 

• In essence, this Government Regulation was issued to encourage and boost the Indonesian Participant to  participate in the Mining of Mineral and Coal within the Indonesian Territory;  The IUP or Mining Permit may not be transferred,  except if the Party receiving such IUP owns more than 51% shares of the PT holding such IUP; 
• Pak Sony as the Legal Officer from the Ditjen Mineral and Coal in a Seminar  explained that the intention by the Government is that The Government can monitor the Party who controls such IUP holder who is responsible upon the performances of the Mining Operations in the given Mining Area under such IUP;

Furthermore under Article 7A of the Government Regulation No. 24 Year 2012, it is stipulated that if the applicant of the IUP is foreign capital company or foreign capital Investor, the Minister of ESDM approval is required; Thus, since the IUP is granted by the Bupati, than an IUP cannot be granted by the Bupati to a foreign Capital Investor;

• We can see that in every country now a days, the Government in the Region of the Development Countries based on the development of China, India, Brazil, Russia,  South Africa are gaining confidence in encouraging the Local Participant or Local Investors including Indonesia to play a significant role to actively participate  in the business operations including in the Mineral and Coal business which could be shown by KPC in Kalimantan which is owned by Bumi Resources as the Indonesian Owned National Participant in the Coal Mining Project in Indonesia; 

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• This trend is also stimulated by the Growing Awareness of the Indonesian Democracy, which had encourage the Indonesian Investors to actively participate not only as broker, but as a real player in the Mining Minerals and Coal Industry in Indonesia; Time will demonstrate whether the Indonesian Player can really use this momentum in the Mining of Hard Mineral and Coal business operations, which is inspired by the Indonesian Investors in the Oil and Gas, such as Medco, who are  really growing and playing an important role in the development of the Indonesian Oil and Gas Sectors; 

Technology, Financial engineering and Knowledge is not only owned, controlled and managed by the Former players, but is beginning to be tapped by the Local Investors from the fast Growing Development Countries, which can be seen by the planning of establishment of  Alternate Banks by BRICSA (Brazil, Russia, India China and South Africa);

Jakarta, 2 April 2012

Agung S.Suleiman

                             
    

Enjoying Being Independent Business Lawyer

• I can set up my own definition as to becoming success which is really unconventional and non-traditional  by setting up my own definition of being success, among others by gaining more flexible time depending on my own set of rules as to where and at what time I wanted to do my work.This concept of paradigm is pursuant to the Book which I am now reading called Career Success without a Real Job written by Ernie J.Zelenski

I managed to be more independent by having my own Special Purpose Vehicle (SPV) which is an Independent Law Firm now called  Suleiman Agung & Co ( SACO LAW FIRM); 

• After having been for more than 13 & a half  Years experiencing running this Law Firm, I realize that it really depends on our-self willingness and choice as to what do you want and prefer to be concentrating and focusing on your Career Success, which definition  of Success is being freely  set- up and design by you your self and no other person. 
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• You are the only person who really knows what type of career path that you wanted to establish and venture in this life; Besides working you must also have "time" to  enjoy your life and being alive in this world; You have to venture and sometimes make certain experimental moves in your life;

• In order to optimize your professional ideas in your field of professional you must really enjoy what you are doing and not because of being forced by others  perception in electing the life style that you really like;

The important and significant element that you have to do is that You must establish your hours of experience and track records  in serving your Clients which will certain be the Valuable Assets that you like to focus and sell as your expertise to your Clients;

• You must seek the ways as how you can grab the  opportunities  to demonstrate your expertise which you master and are in  confidence with, which will  benefit and be an  advantage as an Added Value to your Client's business goals and objectives;

From my self experience in developing my so called Professional Career, I noticed that this can be achieved by each and everyone  of  us,  if you are having the freedom to set up your own established  flexible time and place which you allocate,  to learn  the merits and core of your Clients business transactions;

• You have to focus with your best effort for example to make certain Brief Executive summary through a Scheme and a systematic bullet points at the right time and moment  which could help Giving Snapshots and Quick Glance of the Important Issues that your Client has to be aware of, because time is of the essence to make the right and proper business decision;

Well the above are some of the tips that I would like to share with you in the beginning of this Year of 2012, and I wish you a very Happy New Year 2012, New Hope, New Venture, New Spirit, New Venture

Jakarta 2 January 2012
Agung S.Suleiman 

EXITING EXPERIENCED INDONESIAN OIL LAWYER

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Being experienced as Business Lawyer  in the Oil Ventures in Indonesia is really quite an exiting experience. The difference being experienced as lawyer for Indonesian Local Oil Companies who is surviving and struggling to survive and being  lawyer serving legal services for Big Oil Foreign Companies is relating to the funding capability  in their Oil Business Venture.

•   Even though we are in Indonesia, Indonesian Oil Companies who are operating in Indonesia starting from Exploration can be counted. Usually Indonesian Oil Companies who started venturing in the Oil Business in Indonesia started by acquiring ex-Oil Blogs, which had been sold by the Foreign Oil Companies which are already in the Exploitation and Producing stage.  By doing this the Indonesian Oil Companies can manage to show to the bankers that they have cash-in from the selling of the Crude oil for a certain period of time . 

There is also an Indonesian Oil Company who started in the Oil Ventures in Indonesia, after they had   experience running a Drilling Company, where they have already owned certain numbers of Rigs as well as cash in revenues which can be used as collateral for the repayment of their  loans to their Banks. This Oil Company was also formerly at the early stage Managed and Chaired by an Indonesian Expert Oil Top Leader namely John S Karamoy  who had experienced in running big Foreign Oil Company such as Stanvac  and Vico Indonesia,  who is now the founder of JME which my SACO Law Firm is presently in association with.

• I am lucky enough to be experienced as an Indonesian Oil Lawyer who had assisted and were also being involved in reviewing the Sales Purchase Contracts of this ex Foreign Oil Blog acquired by said Indonesia Oil Company, when I founded and set up my Suleiman Agung & CO ( SACO Law Firm).  

Several contracts and transaction were prepared, which includes reviewing the Sale Purchase Stocks, Farm in and Farm Out, Joint Operating Agreement ( JOA), Legal Due Diligence, providing Legal Opinion. There are also Indonesian Oil Companies who are selling out certain percentage part their of their Participant Interests to other Oil Investors in order to remedy and balance their cash flows.      

• In the oil business practices, if the Oil are still in below the ground however located already in the proven and exploitation stage, 1 (one) barrel  is usually valued to be USD1 dollar. If such oil is still located in the exploration stage however is located near by the structure of the exploitation stage shall be valued 30 cents United States Dollars. 

For the purpose of calculating the expected oil reserved,  a study is usually conducted by several expertise consultant to predict the volume of Crude Oil Reserves or Deposits  in a certain Oil Contract Area. This is usually detected by the Oil Reservoir Engineers and Geologist team. Accordingly, the Investors in the Oil Business have to be supported by these expertise engineers and chaired and Lead by the Expert Leader Management of such Oil Company. 

• Such team have to be solid and having real experience in their fields combined with the operation team members as well as the Finance and Legal Expertise to team up such Solid Working Team. One of the significant element is that somebody has to be recognized by the Bankers or Financial Institutions who financed such Oil Ventures which is usually performed through the Holding Companies, but the Oil Company has to be headed by a Certain Expert Management Leader who is already recognized by said Bankers through his track records of his capability and ability to manage and make the Oil Business Operations succeed  in generating Cash-In,  through sustainable production and selling such Crude Oil to the Buyers in a commercial and bankable cash in for a certain period of time. 

In practice, members of the Participant  Interest Holder,  is usually more than one Company, which one of the member of the Investors must also have some self funding sources to back up the financing of the Oil Ventures in addition to the Funding from the Bankers, because in the early stage of the exploitation and producing, several new exploration wells within the Oil Block under the Contract Area of such PSC Contracts with BPMIGAS,  must also still be  founded  and drilled to be further developed for producing to maintain the sustain producing,  lifting and selling of the Crude Oil for the cash in.....      

Jakarta 29 October 2011 - Agung S.Suleiman Partner of  SACO LAW FIRM  
                                                                          in association with   JME