In an effort to curb raw mineral exports, the minister of trade has issued Regulation 29/M-DAG/PER/5/2012 on Provisions of Mining Products Export.

The mining products that are subject to the regulation as listed in Appendix 1 comprise 65 metal minerals, non-metal minerals and rocks. Under the regulation, these regulated products may be sourced only from parties that hold a mining permit and their export may be conducted only by exporters that are licensed as a registered exporter.

The registered exporter licence 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 licence, a registered exporter is required to obtain the approval of the minister of mines and energy for every intended export of any regulated products. For the approval, the recommendation of the Directorate General of Minerals and Coal (DGMC) is required. The procedure and requirements for this recommendation are detailed in DGMC Regulation 574.K/30/DJB/2012 of May 11 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 conduct the required verification only in areas that have been designated as their 'work area' and are prohibited from working in what is called Wilayah Kosong, or an area that has 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 regulations of the minister of trade that were issued in 2007 and 2008. It became effective on the day of its issue on May 7 2012.

For further information on this topic please contact Hamud Balfas at Ali Budiardjo, Nugroho, Reksodiputro by telephone (+62 21 250 5125), fax (+62 21 250 5121) or email (hbalfas@abnrlaw.com).

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