Affiliated Mining Services Provider Regulation

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 65-70

CHAPTER 5

Affiliated Mining Services

Provider Regulation

I. Executive Summary

1. Overview

The Affiliated Mining Services Provider Regulation (hereinafter referred to as

“DGoMCR 376/2010”) was issued with legal effect from May 10, 2010,

and by way of implementation of Article 9 of GR 28/2009.

2. Approach

2.1 Affiliated Mining Services Provider: An “Affiliated Mining Services

Provider”is a business entity having any of the following relationships

with an IUP/IUPK holder.

a. The IUP/IUPK holder has not less than 20% direct share ownership

in the Affiliated Mining Services Provider;

b. The IUP/IUPK holder has some direct share ownership in the

Affiliated Mining Services Provider and has not less than 50% of

the voting rights in respect of the Affiliated Mining Services Pro-

vider pursuant to an agreement allowing the IUP/IUPK holder to

indirectly control the financial and operational policies of the

Affiliated Mining Services Providers; or

c. The IUP/IUPK holder is authorized to appoint or dismiss the

Finance Director, the Operational Director, or other similar execu-

tives of the Affiliated Mining Services Provider.

2.2 Appointment: An IUP/IUPK holder may only appoint an Affiliated

Mining Services Provider in certain circumstances where:

a. There is no “similar”[unaffiliated] Mining Services Provider in the

subject Regency/City and/or Province; or

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