Executive Summary of Presidential Regulation Re Under Ground Mining in Protected Forest

INTRODUCTORY NOTES
This Summary & Analysis is intended as an overview only of Presidential Regulation No. 28 of 2011, dated 19 May 2011, re Underground Mining in Protected Forests (?Presidential Regulation 28/2011?).

This Summary & Analysis reflects our current understanding only of Presidential Regulation 28/2011 and is subject to change as that understanding develops and evolves.

Many of the points made in this Summary & Analysis are necessarily speculative in nature and subject to further clarification and confirmation. Accordingly, it would be prudent not to rely solely on this Summary & Analysis but, rather, to seek specific legal advice with respect to any issue concerning Presidential Regulation 28/2011 before making a material business decision regarding the same. CHRISTIAN TEO PURWONO & Partners would be pleased to assist you in this regard. Our contact details are set out below.
Address : CHRISTIAN TEO PURWONO & Partners
The Indonesia Stock Exchange Building
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Sudirman Central Business District
Jakarta 12190 INDONESIA
Telephone : [62-21] 515 0280
Facsimile : [62-21] 515 0281

Please contact, in the first instance, Mr. Bill Sullivan, Licensed Foreign Advocate (email: bsullivan@cteolaw.com and mobile: [62-21] 81585060978) or Ms. Nurvita Kristianty Siregar, Senior Associate (email: nksiregar@cteolaw.com and mobile [62-21] 818482777).

EXECUTIVE SUMMARY
1. Mining activities may be carried out in Protected Forest Areas by way of underground mining so long as this does not alter the main purpose and function of the Protected Forest Areas.

2. In order to be able to utilize Protected Forest Areas for underground mining activities, the holders IUPs/CoWs/CCoWs must apply for and obtain Protected Forest Rent Use Permit from the Minister of Forestry (?MoFor?).

3. MoFor will, first, issue an Approval in Principal License to the applicant for a Protected Forest Rent Use Permit, with a maximum initial validity period of 2 years but which is extendable, subject to evaluation by MoFor.

4. The Approval in Principal License will specify a number of obligations that must be fulfilled by the Protected Forest Rent Use Permit applicant in order to obtain the Protected Forest Rent Use Permit.

5. Once the Approval in Principal License holder fulfills the Approval in Principal License Obligations, MoFor will issue the Protected Forest Rent Use Permit.

6. Protected Forest Rent Use Permits will be initially granted for a maximum period of 20 years but be extendable in accordance with the validity period of the underlying IUPs/CoWs/CCoWs and subject to evaluation by a Monitoring & Evaluation Team.

7. Protected Forest Rent Use Permits are transferable subject to MoFor?s prior written approval.

8. Protected Forest Rent Use Permit holders are prohibited from carrying out underground mining activities which may cause land surface subsidence or permanent change to the purpose or function of Protected Forest Areas.

9. A Protected Forest Rent Use Permit may be revoked by MoFor if its holder (i) does not fulfill certain obligations under the Protected Forest Rent Use Permit or (ii) violates Presidential Regulation 28/2011. (ends)

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