Divest 51% shares to the Participant Indonesia.

Its shocking for Investor in Indonesia mining the government issuing new regulation.

To provide greater opportunity for participants Indonesia in business activities and mineral mining coal, the government through Government Regulation No. 24 of 2012 requires foreign investment company (PMA) holders of Mining Permit (IUP) and the Special Mining Permit (IUPK) to divest its shares gradually at least 51% of the participants Indonesia. Divestment should be done after 5 (five) years until the tenth year since the PMA IUP and IUPK production.

In terms signed by President Susilo Bambang Yudhoyono (SBY) dated February 21 was mentioned, Indonesia is a participant that is the government, provincial governments, or local government district / city, state, enterprises, or private entities nationwide.

"The offering of shares as referred to made no later than within 90 (ninety) calendar days after 5 (five) years of permit issuance stage of production mining operations," reads Article 97 Paragraph 6 of Government Regulation No. 24 of 2012

Provisions of the divestiture of mineral and coal mines PMA is different from the previous provisions contained in the PP. No. 23 of 2010, which only require PMA Mineral and Coal Mine divest 20% of the entire share.

In the PP No. 24 of 2012 which is a change in the PP. No. 23 of 2010 was not mentioned directly mines the type of business that are required to divest its shares to Indonesian participants. But the reference to Regulation No. 23 of 2010 Article 2 Paragraph 2 stated, that the mineral and coal mining are grouped into 5 (five) classes of mining commodities, which is:

1. Radioactive minerals include radium, thorium, uranium, monazite, and other radioactive minerals;

2. Metallic minerals include gold, copper, silver, lead, zinc, tin, nickel, platinum, potassium, calcium, bauxite, titanium, iron, mercury, etc.;

3. Non-metallic minerals include diamonds, quartz sand, iodine, phosphorus, sulfur, asbestos, limestone for cement, gypsum, quartz stone, etc.;

4. Among the marble rocks, soil absorption, andesite, pumice, sirtu, urug sand, quartz crystal, jade, sea sand, red soil, big mountains rock, onik, etc.;

5. Coal includes solid bitumen, rock asphalt, coal, and peat.

PP No. 24 of 2012 also includes the divestment stage for IUP and IUPK PMA holder, which is:

1. Sixth year of 20% (twenty percent);

2. Seventh year of 30% (thirty percent);

3. 37% eight years (thirty-seven percent);

4. Ninth year of 44% (forty-four percent);

5. Tenth year of 51% (fifty one percent) of total shares.

PP is also explained, the transfer of shares PMA mineral and coal mining done in sequence to the central government first. If the government is not willing to buy the stock in question, then offered to the provincial government or local government district / municipality. If the provincial or district / city governments are not willing, then offered to state and local enterprise by way of auction.

"If the state-owned enterprises and state enterprises are not willing to buy shares, offered to private companies nationwide by way of auction," reads Article 97 Paragraph 5 of PP No. 24 of 2012.

BUMN to BUMN

Government Regulation No. 24 of 2012 also regulates the transfer of production IUPK IUP and owned by the state. 7B is mentioned in the article, that some Regional Mining Permit (WIUP) and the Regional Mining Permit Khusus (WIUPK) can be transferred to other parties that 51% (fifty one percent) or more owned by the state and IUPK IUP.

"The transfer of part or WIUPK WIU Production Operations conducted with the approval of the minister," the third paragraph of Article 7B PP. Number 24's.

Section 7A PP. No. 24 of 2012 is also confirmed, that the IUP and should not be IUPK ordered the IUP and its IUPK to other parties, the business entity is 51% (fifty one percent) or more holders of shares not owned by or IUPK IUP.