228
IABlE, STrong, EFFICIEnT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 568
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
a. Coal mining, transportation, barging, transhipment and other related agreements continued
Coal producer Agreement date
Contract period or production level metric tonnesMT
PT Berau Coal Binungan H4
27 December 2004 – 21 September 2012
31 December 2013
PT Berau Coal Binungan Blok 1-4
1 March 2007 – 21 September 2012
31 December 2015 PT Berau Coal
Sambarata Blok B-1 21 September 2012
30 September 2012 – 31 December 2015 PT Borneo Indobara
17 October 2006 – 31 July 2012
1 July 2012 – 31 August 2014 or certain production level
PT Borneo Indobara Kusan
23 February 2012 1 January 2012 – 31 December 2016 or certain production
level
SIS is in the process of extending the agreements
b. Land-Use Cooperation Agreement
On 4 November 2009, MSW and the Government of Tabalong Regency entered into a land-use cooperation agreement for the use of 100.2 hectares of the Government of Tabalong Regency’s land, located in Mabu’un village,
Murung Pudak Sub-District, Tabalong Regency, in relation to the construction and operation of a Coal fired Power Plant. The Government of Tabalong Regency will provide the rights to use the land. Subsequently the Group can
apply for land rights for 30 years and this could be extended according to the prevailing law.
In return for the land rights, MSW will supply 1.5 Mega Watts “MW” of the electricity for the regency’s street lighting.
c. Royalty claim
In May 2006, the MoEMR alleged that Adaro had underpaid royalties due from coal sales for the years from 2001 onward and demanded payment. Adaro strongly rejected the allegation because it had discharged its obligation to
pay such royalties by way of offsetting them against the Government’s obligation to reimburse Adaro for its VAT payment as prescribed under the CCA. In May 2006, Adaro filed an objection with the Jakarta Administrative Court
against the MoEMR. Upon Adaro’s application, in May 2006, the Jakarta Administrative Court granted an order restricting the MoEMR from taking any further administrative steps on the issue until a final and binding judgement
was delivered.
In September 2006, the Jakarta Administrative Court issued a decision in favour of Adaro. The Jakarta Administrative High Court concurred with the Jakarta Administrative Court in February 2007. On 26 September
2008, the Indonesian Supreme Court concurred with the decision of the Jakarta Administrative High Court and the decision of the Indonesian Supreme Court is final and binding.
In June 2006, the MoEMR granted authority to the Committee for State Claim Affairs the “Committee” to pursue the alleged underpayment on its behalf. In July 2007, the Committee issued a payment demand to Adaro. As this is
an industry-wide problem, similar demands have been made by the Committee to other first-generation companies.
In September 2007, Adaro filed an objection with the Jakarta Administrative Court against the Committee. Upon Adaro’s application, in September 2007 the Jakarta Administrative Court granted an order restricting the
Committee from taking any further administrative steps on the issue until a final and binding judgement had been delivered. On 15 February 2008, the Jakarta Administrative Court issued a decision in favour of Adaro. The Jakarta
Administrative High Court concurred with the Jakarta Admistrative Court on 1 July 2008. On 22 July 2009, the Indonesian Supreme Court concurred with the decision of the Jakarta Administrative High Court and the decision of
the Indonesian Supreme Court is final and binding. On 29 January 2010, the Committee filed a civil review Peninjauan Kembali on the decision of the Indonesian Supreme Court. On 31 January 2011, the Jakarta
Administrative Court delivered the decision on the civil review
Peninjauan Kembali, where the Supreme Court decided to reject the request of the civil review
Peninjauan Kembali from the Committee, based on decision No. 47PKTUN2010 dated 20 July 2010.
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229
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 569
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
c. Royalty claim continued
