Prioritization of Domestic Interest 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: 71-77

CHAPTER 6

Prioritization of Domestic

Interest Regulation

I. Executive Summary

1. Overview

The Prioritization of Domestic Interest Regulation (hereinafter referred to as

“MoEMR 34/2009”) was issued with legal effect from December 31, 2009 by

way of the implementation of Article 2(c) of the 2009 Mining Law.

2. Approach

2.1 Priority: Mining Business Actors must prioritize the supply of Mineral

Products for domestic interest and by way of selling Mineral Products

to Domestic Users (“DMO”).

2.2 Miner Obligations: A Mining Business Actor is only allowed to

export its Mineral Products once it has fulfilled the Minimum Selling

Percentage determined by MoEMR.

2.3 The price of the Mineral Products to be sold domestically must be in

accordance with the Benchmark Price for Mineral Products whether

for direct selling or for long-term selling.

2.4 Mining Business Actors are obliged to submit to MoEMR cq DGoMC,

the following:

a. Work Plan and Budget for mineral and coal mining business

activities; and

b. Quarterly Reports re fulfillment of the Mineral Products for domestic

interest obligation.

2.5 In the event that a Mining Business Actor is not able to fulfill the

Minimum Selling Percentage in the first quarter, the shortfall of

the Minimum Selling Percentage will be carried forward to the second

quarter and so on.

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