Prioritization of Domestic Interest Regulation

AuthorWilliam A. Sullivan/Christian Teo Purwono & Partners
ProfessionLicensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
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 fullled 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 fulllment of the Mineral Products for domestic
interest obligation.
2.5 In the event that a Mining Business Actor is not able to fulll the
Minimum Selling Percentage in the rst quarter, the shortfall of
the Minimum Selling Percentage will be carried forward to the second
quarter and so on.

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