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DAro EnErgy 2013 AnnuAl rEporT
231
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 571
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
S Dollars, unless otherwise stated
40. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
l. Mining Law No. 42009
On 16 December 2008, the Indonesian Parliament passed a new Law on Mineral and Coal Mining the “Law”, which received the assent of the President on 12 January 2009, becoming Law No. 42009. The CCA system under which
Adaro, one of the Group’s subsidiaries, operates, will no longer be available to investors. However, the Law indicates that existing CCAs, such as that held by Adaro, will be honoured. There are a number of issues which
existing CCA holders, including Adaro, are currently analysing. Among others these include:
- the Law notes that existing CCAs will be honoured until their expiration. However, it also states that existing
CCAs must be amended within one year to conform to the provisions of the Law other than terms relating to State revenue - which is not defined, but presumably includes royalties and taxes; and
- the requirement for CCA holders which have already commenced some form of activity, within one year of
enactment of the Law, to submit a mining activity plan for the entire contract area. If this plan is not fulfilled, the contract area may be reduced to that allowed for mining business licences “Izin Usaha Pertambangan” or
“IUP” under the Law.
In February 2010, the Government of Indonesia released two implementing regulations for Mining Law No. 42009, i.e. Government Regulation No. 222010 and 232010 “GR No. 22” and “GR No. 23”. GR No. 22 deals with the
establishment of the mining areas under the new mining business license “IUP”. GR No. 23 provides clarifications surrounding the procedures to obtain the new IUP. GR No.23 indicates that existing CCAs will be honoured by the
Government although any extension of existing CCAs will be through the issue of an IUP.
On 21 February 2012, the Government of Indonesia amended GR No. 23 by issuing Government Regulation No. 242012 “GR No. 24”, which regulates the transfer of IUPs, divestment and mining areas.
The Group is closely monitoring the progress of the implementing regulations for the Law and will consider the impact on its operations, if any, as these regulations are issued.
m. Ministerial Regulation No. 282009
