In an effort to curb raw mineral exports, the government of Indonesia through the Minister of Trade has issued Regulation No. 29/M-DAG/PER/5/2012 regarding Provisions of Mining Products Export (the “Regulation”).
The mining products that are subject to the Regulation as listed in Appendix I comprise 65 metal minerals, non metal minerals and rocks (the “Regulated Products”). Under the Regulation, these Regulated Products may only be sourced from parties that hold a mining permit, and their export may only be conducted by exporters that are licensed as a registered exporter (“Registered Exporter”).
The Registered Exporter license is issued by the Directorate General of Foreign Trade of the Ministry of Trade, and is valid for two years. In addition to the Registered Exporter license, a Registered Exporter is also required to obtain the approval of the Minister of Mine and Energy (“MME”) for every intended export of any Regulated Products. For the approval, the recommendation of the Directorate General of Mineral and Coal (the“DGMC”) is required. The procedure and requirements for this recommendation are detailed in Regulation of the DGMC No. 574.K/30//DJB/2012 dated 11 May 2012.
Regulated Products bound for export must also undergo verification by a licensed surveyor before being loaded onto a ship. The Regulation stipulates the requirements that must be fulfilled by a surveyor in order to become a licensed surveyor. Licensed surveyors can only conduct the required verification in areas that have been designated as its ‘work area’, and are prohibited from working in what is called “Wilayah Kosong”, or area that has a mining potential but is not designated as their work area.
The lengthy verification procedure and tighter export regulations and requirements have triggered comments and criticisms from interested parties.
The Regulation revokes two previous Minister of Trade regulations that were issued in 2007 and 2008. It became effective on the day of its issue on 7 May 2007.