In a bid to increase the export value of mining products, the Ministry of Trade (?Ministry?) has issued Regulation No. 01/M-DAG/PER/1/2017 on Export Provisions for Processed and Purified Mining Products. In short, the regulation addresses several matters, including limitations on exports of processed and purified mining products, an export ban on raw materials and ores, export approval, requirements for surveyors, verification procedures, reporting obligations and mineral products which are exempt under the regulation.

In a bid to ease the operations of trade businesses as they carry out their day-to-day activities, the Ministry of Trade has now repealed the obligation for such businesses to re-register their business trade licenses through the issuance of Regulation No. 7/M-DAG/PER/2/2017 on the Third Amendment to Ministry of Trade Regulation No. 36/M-DAG/PER/9/2007 on the Issuance of Business Trade Licenses.

In order to offer updated guidelines on the utilization of renewable energy for the generation of electrical power and therefore meet the national energy security target of lower levels of carbon dioxide in the environment, the Ministry of Energy and Mineral Resources (?Ministry?) has issued No. 12 of 2017 on the Utilization of Renewable Energy for the Procurement of Electrical Power. The new regulation addresses a number of important matters relating to the utilization of renewable energy, including maximum purchase prices, the due-diligence processes which are to be undertaken prior to purchase, domestic component levels and standards for power plants, the transparency of PLN, standards for power purchasing agreement, and sanctions for the delayed development of renewable-energy based power plants.

The Ministry of Natural Resources has issued Regulation No. 11 of 2017 on Natural Gas Utilization by Power Plants in order to ensure a higher level of natural-gas utilization by power plants owned by PT PLN, as well as private businesses involved in the running of power plants and which are bound by power-purchasing agreements with PT PLN. The regulation will also ensure that all such natural gas is obtained at competitive yet fair prices. With these aims in mind, the regulation in general sets out a number of provisions relating to supplies of natural gas, sale-and-purchase agreements, prices and distribution tariffs.

The Ministry of Energy and Mineral Resources recently issued Regulation No. 9 of 2017 which sets out further guidelines for foreign mining companies regarding their compliance with the obligation to gradually divest 51% of their total shares within five years of their fifth production year. These guidelines set out the procedures involved in the offering of shares to Indonesian parties, as well as the procedures to be followed when determining share prices and when paying for any divested shares.

With the objective of maintaining public health by ensuring the safety and the quality of bottled drinking-water products, the Ministry of Industry has issued Regulation No. 78/M-IND/PER/11/2016, which sets out new guidelines for the mandatory implementation of Indonesian National Standards for bottled mineral, de-mineralized, natural mineral and dew drinking water. In essence, these guidelines cover the list of Indonesian National Standards that must be implemented for said products, exemptions to these obligations, as well as the requirements and procedures involved in obtaining technical considerations (for such exemptions) and SPPT-SNI in order to prove compliance with the implementation of mandatory standards, as well as the various consequences for non-compliance.

The Ministry of Energy and Mineral Resources has issued just three ministerial regulations which relate to the electricity sector. One of these is Regulation No. 10 of 2017 on the Main Provisions for Power-Purchase Agreements, which sets out detailed information on the mandatory provisions that must be incorporated into any agreement which is to be concluded between independent power producers (IPP) and the state electricity company (PT PLN) and which relates to the sale and purchase of electrical power. Along with these mandatory provisions, the regulation also introduces a new mechanism for power-purchase agreements, specifically the so-called deliver-or-pay mechanism. This mechanism requires IPPs to compensate PT PLN for any failure to deliver electricity and also requires PT PLN to pay penalties to IPPs for any failure to absorb electrical power in accordance with the amount agreed in a given power-purchase agreement.

The Ministry of Energy and Mineral Resources (?Ministry?) has issued Regulation No. 7 of 2017 on Procedures for the Determination of Benchmark Prices for the Sales of Metal Minerals and Coal. This regulation serves as a specific implementation of Articles 85 (4) and 111 of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal-Mining Activities, which has already been amended four times, most recently by Government Regulation No. 1 of 2017. Articles 85 (4) and 111 of Government Regulation No. 23 of 2010 required that procedures for the determination of benchmark sales pricing for metal minerals and coal be further regulated under a ministerial regulation. In essence, this regulation encompasses benchmark pricing in general, benchmark pricing for metal minerals and coal, as well as reporting obligations.

In order to ensure an improved implementation of Government Regulation No. 1 of 2017, the Ministry of Energy and Mineral Resources has issued Regulation No. 6 of 2017 on Procedures and Requirements for the Granting of Recommendations for the Sale of Processed and Purified Minerals Overseas. This regulation is specifically aiming to redefine the requirements and procedures for mining businesses which are looking to obtain recommendations from the Ministry, as a prerequisite for the granting of approval for the export of processed and purified minerals. In essence, this regulation encompasses provisions which relate to the various parties which are eligible for the export of minerals, procedures for securing and extending export recommendations and supervisory measures.

Following the issuance of Government Regulation No. 1 of 2017 on the Fourth Amendment to Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal-Mining Activities, the Ministry of Energy and Mineral Resources has issued Regulation No. 5 of 2017 on the Enhancement of the Added Value of Minerals Through Domestic Mineral Processing and Refinement Activities in a bid to assist the implementation of this Fourth Amendment. In a nutshell, the regulation updates various provisions relating to the enhancement of the added value of metal minerals, non-metal minerals, rocks and their byproducts/residues, as well as their export, especially for parties to mining contracts. Furthermore, the new regulation also adds new provisions relating to the utilization of certain metal minerals, namely nickel and bauxite