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Head of Regional Investment and Permittance Board of East Kalimantan) Coal Mining Potencies in East Kalimantan Brief Profile of East Kalimantan

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Head of Regional Investment and Permittance Board of East Kalimantan) Coal Mining Potencies in East Kalimantan Brief Profile of East Kalimantan PRESENTED BY DIDDY RUSDIANSYAH A.D (HEAD OF REGIONAL INVESTMENT AND PERMITTANCE BOARD OF EAST KALIMANTAN) COAL MINING POTENCIES IN EAST KALIMANTAN BRIEF PROFILE OF EAST KALIMANTAN Total area of Kalimantan Timur is 125.336,81 km square (or 12,726,752 hectares), consists of : - 3 (three) Cities : 1. Samarinda 2. Balikpapan 3. Bontang - 7 (seven) Regencies : 4. Kutai Kartanegara 5. Kutai Timur 6. Kutai Barat 7. Berau 8. Penajam Paser Utara 9. Paser 10. Mahakam Hullu Its population up to 2014 is 3,508 million inhabitants, with the result that the average population density is 26,14 inhabitants/km square REGIONAL GEOLOGY ....... From geological point of view, East Kalimantan is located in three major tertiary sedimentary basins which have major impact on the process of mineral resources formation in the region. The three basins are : Kutai Basin which covers the area of Mahakam Hilir and Mahakam Hulu. Pasir Basin which covers the area of Paser. Tarakan Basin which covers the area of Tarakan, Berau, and Bulungan. COAL BEARING FORMATION Coal Bearing Formations in Kalimantan Timur are : Balikpapan Formation Pulaubalang Formation Pamaluan Formation Kuaro Formation Wahau Formation Batuayau Formation Tanjung Formation Warukin Formation Telakai Formation Birang Formation Latih Formation COAL RESOURCES AND RESERVES IN EAST KALIMANTAN IN 2012 – 2014 Coal Calorie 5000 up to 7000 Ccl and Sulphur 0,8 up to 1,5 Description 2012 2013 2014 Resources 31.817.269.817 32.258.774.367 30.651.444.628 (MT) Reserves 9.244.407.452 9.525.868.005 8.826.730.632 (MT) Note : Coal Resources and Reserves for 2014 only in the area of East Kalimantan, excluding the area of North Kalimantan COAL RESOURCES AND RESERVES IN EAST KALIMANTAN IN 2015 RESOURCES RESERVES NO REGENCY/CITY INFERRED INDEXED MEASURED TOTAL ESTIMATED PROVEN TOTAL 1 SAMARINDA 331.185.099 267.828.597 154.989.788 754.003.484 48.249.074 140.678.674 188.927.748 KUTAI 2 1.918.871.428 1.751.424.000 2.889.348.946 6.559.644.374 247.657.332 1.406.672.887 1.654.330.219 KARTANEGARA PANAJAM 3 0 9.067.682 1.007.520 10.075.202 0 7.922.311 7.922.311 PASER UTARA 4 PASER 363.472.020 646.338.610 248.257.078 1.258.067.708 182.775.400 576.787.640 759.563.040 5 KUTAI BARAT 826.226.133 640.781.169 931.010.716 2.398.018.018 65.238.769 256.697.062 321.935.831 6 KUTAI TIMUR 6.849.597.912 6.581.469.841 6.999.080.897 20.430.148.650 3.419.535.659 1.758.560.278 5.178.095.937 7 BERAU 738.005.610 1.093.377.488 563.205.213 2.394.588.311 356.593.000 246.014.331 602.607.331 TOTAL 11.027.358.202 10.990.287.387 11.786.900.158 33.804.545.747 4.320.049.234 4.393.333.183 8.713.382.417 COAL MINING MANAGEMENT POLICIES IN EAST KALIMANTAN THE IMPLICATION OF THE ENACTMENT OF THE LAW NO. 23 OF 2014 ON LOCAL GOVERNMENT (UNDANG-UNDANG N0. 23 TAHUN 2014 TENTANG PEMERINTAHAN DAERAH) Government affairs Central Government Authorities implementation on 1. Mining Permit (Izin Usaha Pertambangan/ mineral and coal mining IUP) Issuance for metallic minerals, non sector is divided metallic minerals, coal, and rock in : between the central Mining Permit Areas (Wilayah Izin Usaha Pertambangan (WIUP)) which are government and the located within the area of inter-province provincial government Mining Permit Areas which directly borders with other countries This means the Mining Permit Areas which are located in the sea area of more than 12 miles implementation is no 2. The issuance of the Mining Permit in the longer under the Foreign Direct Investment authority of the 3. The issuance of a Special Permit of Mineral city/regency (since and Coal Mining October 2, 2014) Cont ..... PROVINCIAL GOVERNMENT AUTHORITIES 1. Mining Permit Issuance for metallic minerals, non metallic minerals, coal, and rock for domestic investment in : Mining Permit Areas in areas located within the province Mining Permit Areas in the sea area less than 12 miles 2. Community Mining Permit Issuance for metallic minerals, non metallic minerals, coal, and rock commodities within the community mining area THE FOLLOW UP OF THE IMPLEMENTATION OF THE LAW NO. 23 OF 2014 ....... 1. Governer is authorized to revoke the non CnC Mining Permit which doesn’t meet the obligations (for technical reference : Minister of Energy & Mineral Resources Regulation No. 43 of 2015 on Procedures for Mineral & Coal Mining Permit Issuance Evaluation (Peraturan Menteri Energi & Sumberdaya Mineral No. 43 Tahun 2015 tentang Tata Cara Evaluasi Penerbitan IUP Mineral & Batu Bara)) 2. Regent/Mayor submits the Mining Permit and the supporting documents to the Governor 3. Regent/Mayor/Governor submits the Foreign Investment Mining Permit and the supporting documents to the Central Government 4. Provincial Governments establish One Stop Services (OSS (Pelayanan Terpadu Satu Pintu (PTSP)) and umbrella permittance law 5. Governor may establish Technical Service Unit (Unit Pelayanan Teknis) in the Regency/City for the implementation of the guidance and supervision, including increase the Information & Technology functional staff as well as strengthen the mining database 6. Completion of administrative boundaries between the Regencies/Cities COAL MINING MANAGEMENT Applied based on national regulations, to be specific : Law No. 4 of 2009 on Mineral and Coal (Undang-Undang No. 4 Tahun 2009 tentang Pertambangan Mineral & Batu Bara) Government Regulation No. 77 of 2014 on 3rd Amendment to Government Regulation No. 23 of 2010 on the Implementation of Mineral & Coal Mining Operations (Peraturan Pemerintah No. 77 Tahun 2014 tentang Perubahan Ke-3 Atas Peraturan Pemerintah No. 23 Tahun 2010 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral & Batu Bara) Minister of Energy and Mineral Resources Regulation No. 32 of 2013 on Procedures for Granting Special Permits on Mineral & Coal Mining (Peraturan Menteri Energi & Sumberdaya Mineral No. 32 Tahun 2013 tentang Tata Cara Pemberian Izin Khusus Dibidang Pertambangan Mineral & Batu Bara) At provincial level (East Kalimantan) applied the East Kalimantan Governer Regulation No. 17 of 2015 on Management of Permittance and Non Permittance Granting and Improvement of Permittance Management on Mining, Forestry & Palm Oil Plantation in East Kalimantan (Peraturan Gubernur Kalimatan Timur No. 17 Tahun 2015 tentang Penataan Pemberian Izin dan Non Perizinan serta Penyempurnaan Tata Kelola Perizinan Di Sektor Pertambangan, Kehutanan & Perkebunan Kelapa Sawit Di Provinsi Kalimantan Timur) Governer Regulation No. 17 of 2015 (Peraturan Gubernur No. 17/2015) 1. Create resource management policy harmonization between the Central and Provincial Government Accommodate 2. Evaluate policies which have been sectoral rules issued against the benefit and impact of natural resource management Accommodate 3. Provide protection against social, economic environmental pollution and damage, and particularly forest and its ecosystem environmental aspects 4. Encourage entrepreneurs/investors and other stakeholders’s compliance on the obligations THE SCOPE OF PERMITTANCE AND NON PERMITTANCE MANAGEMENT (Article 5, Paragraph (2)) MINING FORESTRY Permittance Issuance Borrow and Use of Forest Areas Permit Recommendation (Mining Permit/ Izin Usaha (Rekomendasi Izin Pinjam Pakai Pertambangan (IUP)) – Kawasan Hutan (IPPKH)) Exploration (IUP Exp) and Timber Forest – Natural Operation (IUP OP) Forest/Limited Forest Product Utilization Permit (Izin Usaha IUP Exp & IUP OP Issuance Pemanfaatan Hasil Hutan Kayu - by Regency/City Hutan Alam/ Hutan Terbatas (IUPHHK-HA/HT)) Forest Area Exchange Recommendation MANAGEMENT OF PERMITTANCE AND NON PERMITTANCE GRANTING AND IMPROVEMENT OF PERMITTANCE MANAGEMENT ON COAL MINING SECTOR (Article 6) 1. Postponement and management of permittance granting are applied for the new permittance (valid in 2 years since the issuance of the Governor Regulation - Article 10) 2. Penundaan dimaksud dikecualikan untuk : Permittance for exploration activities which are already underway Enhancement of Exploration Mining Permit into Production Operation Mining Permit in the area of Other Use Areas (Areal Penggunaan Lainnya (APL)) and production forest area Extension of Production Operation Mining Permit Cont ..... 3. Enhancement and extension of the permittance and non permittance as explained in the explanation number 2 above can be granted as long as the requirements are fulfilled, to be spesific : Committed to fulfil the Domestic Market Obligation, especially in the scope of East Kalimantan Committed to provide supplies or build power plants Committed to support the food security program (reclamation for crops and cattle) Should not overlap with similar commodities permittances Headquartered (at least has a branch office) and has an enterprises Taxpayer Identification Number (TIN/Nomor Pokok Wajib Pajak (NPWP)) in the area of East Kalimantan Pay attention to the carrying capacity of the environment and local communities Should not export raw material Build downstream industries 4. The commitment is part of the Minutes after the presentation of the permit applicant before the Governer (or authorized officials), and set forth in a Statement The issuance of new permittance and permittance extension of NON METALLIC MINERAL AND ROCK (Article 6 Paragraph 6 Governor Regulation No. 17 of 2015 (Pasal 6 Ayat 6 Peraturan Gubernur No. 17 Tahun 2015)) The implementation can be referred to the GOVERNER OF EAST KALIMANTAN REGULATION NO. 4 OF 2015 ON GUIDANCE OF NON METALLIC MINERAL AND ROCK MINING PERMIT IMPLEMENTATION (PERATURAN GUBERNUR KALIMANTAN TIMUR NO. 4 TAHUN 2015 TENTANG PEDOMAN PELAKSANAAN IZIN USAHA PERTAMBANGAN MINERAL BUKAN LOGAM & BATUAN DI PROVINSI KALTIM) PROCEDURES OF COAL MINING PERMITTANCE IN EAST KALIMANTAN PROVINCE PERMITTANCE PROCEDURES .... Its implementation is based on With reference to Presidential the Governor of East Decree No. 97 of 2014 on One Kalimantan Regulation No. 48 Stop Services (OSS) of 2015 on the Implementation of One Stop Services (OSS) INVESTMENT PRINCIPLE PERMIT Head of Investment Coordinating Principle permit serves as a Board Regulation No.
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