EXPORT QUOTA TERM

Based on New Minister Regulation No.25 year 2018:

 Holders of IUP Production Operation or IUPK Operations Production can conduct Nickel Sale with
grade <1.7% (less than one point seven percent) or bauxite which was washed bauxite with Al2O3
levels> 42% (greater than or equal to four twenty-two percent) may doing Sales of processing to
overseas in the certain amount up to date January 11, 2022 which has / is building a smelter facility
after paying the duty out accordingly with the provisions of legislation and meet the minimum limit
of processing.
 Has or is building a Smelter facility may in the form:
a. build their own Smelter facility, or
b. cooperation to build Purification facilities in the form of:
1) share ownership directly on Business Entity holds IUP of Production Operation specifically for
processing and / or purification; or
2) direct ownership of shareholders Production Operation IUP specifically for processing and /
or purification on the Business Entity holders of IUP Production Operation or IUPK Production
operation.
 Required recommendation from the Director General Minerba and then Export can be done after
obtaining Export Approval from the Director General government affairs in Ministry of Foreign
Trade.

 The Director General Minerba on behalf of the Minister undertakes supervision of:
a. Implementation of Mineral Sales to overseas
b. Progress of domestic refining facility consists of
1) Physical improvement of purification facilities; and
2) The amount of uptake of facility construction cost purification.

 Physical Progress of Smelter Facility Development must reach at least 90% (ninety percent) of the
physical development progress plan refining facilities calculated cumulatively until the last 1 (one)
month by Verifier Independent.

 In terms of every 6 (six) months percentage of progress physical development of Smelter facilities as
does not reach 90%, Director General Minerba on behalf of the Minister publish recommendation to
the Director General who organizing government affairs in the ministry foreign trade to revoke the
agreement export that has been given and may be fined administrative account of 20% (twenty
percent) of the value cumulative sales of minerals abroad.
Requirements for applications of publishing recommendations for export quota approvals:

1. Statement of validity of documents.

2. Integrity pact to undertake the construction of domestic refining facilities.

3. Report of Analysis (RoA) or Certificate of Analysis (CoA) of metallic mineral products that have met
the minimum limit of Processing issued in the last 6 (six) months from Independent Surveyor.

4. Cooperation agreement for metallic minerals with certain criteria in the form of nickel and bauxite:
In the case of cooperation is done through ownership of shares, evidenced by a copy of the deed of
establishment of IUP Production Operation Minerals Metal, IUPK Production Operation or
Production Operation IUP specifically for processing and / or purification and / the amendment duly
authorized by the Ministry of Law and Human Rights to prove its direct ownership of shares.

5. Plan for construction of domestic refining facilities verified by Independent Verifiers.

6. Work Plan and Budget (RKAB) of the current year, which have been approved by the Minister or the
governor in accordance with their authority.

7. Physical verification progress report from Independent Verifier for IUPK holders of metal mineral
production operations, metal mineral Production Operation IUP, and Production Operation IUP
specifically for processing and / or purification that has been or is currently undertaking the
construction of purification facilities.

8. Reserve statement report in accordance with the provisions of laws and regulations.

9. Copy of valid Company Registration Certificate (TDP) and Taxpayer Identification Number (NPWP).

10. Copy of Production Operation IUP, Production Operation IUPK, and / or Production Operation IUP
specifically for processing and / or refining which is still valid.

11. List of Board of Directors and Commissioners with identity and NPWP.

12. List of shareholders up to Beneficial Ownership.

The export recommendation may only be granted provided that:

1. At least has completed all the stages of preparation Initial projects include feasibility studies,
environmental permits, and land tenure as well as the stages of project preparation in the year
2018.
2. At least have completed the stages of preparatory activities initial project and project preparation
and have entered the stage project implementation includes procurement and construction on year
2019.
3. At least have completed the initial project preparation, project preparation, and has entered the
stage of project implementation covering procurement and construction by year 2020.
4. At least have completed the initial preparation phase projects, project preparation, and the entire
implementation phase projects as well as entering commissioning and start activities up in year
2021.

Steps of Requests, Evaluations, and Approvals on Recommendations of Metal Minerals Exports:

1. Applicants submit application for recommendation of export approval of metallic minerals with the
completeness of physical documents requirements and copies in electronic form.
2. Integrated Information Service and Investment Service Officer, check the completeness of the
application file. If the application file is complete, the officer gives the receipt to the applicant, and
proceeds to the Coordinator of the Integrated Information and Investment Service Room. If an
incomplete application file is returned to the requester.
3. The Coordinator of the Integrated Information and Investment Service Room forwarded the file to
the Evaluator.
4. The evaluator evaluates the completeness and correctness of the application file in accordance with
the evaluation criteria. If the application is correct, the evaluator prepares the draft memorandum of
the Director of Mineral Business Development to the Director General of Mineral and Coal, the
evaluation sheet, and the concept of export approval recommendation, then submitted to the Head
of Production Supervision Section of Minerals or the Head of Section of Minerals Marketing Control.
If the application file is incorrect, the refusal is submitted through the Integrated Information and
Investment Service Room to be returned to the applicant.
5. The Section Head checks the results of the evaluation of the application file along with the concept
of the official memorandum, evaluation sheet, and the concept of export approval recommendation.
If agreed, the concept of official memorandum of affairs shall be signed, the evaluation sheet shall
be signed, and the entire file shall be submitted to the Head of Sub-directorate of Production
Operation and Mineral Marketing Operations. If not agree returned to the evaluator for review
again
6. The Sub-directorate Head checks the evaluation results of the application file. If agreed, the concept
of memorandum of affairs shall be initialed, the evaluation sheet shall be signed, and shall be
submitted to the Director of Mineral Operations. If not agree to be returned to Section Head for
review again.
7. The director examines the concept of an official memorandum, the concept of export consent
recommendations, and an evaluation sheet. If the approval of the memorandum of understanding
and the evaluation sheet is signed, the concept of export approval recommendation is then
submitted to the secretary of directorate general of mineral and coal. Otherwise agree to be
returned to the sub-directorate for review.
8. Secretary of the directorate general of minerals and coal examines the concept of export approval
recommendation. if agreed, the concept of export approval recommendation is initialed and
submitted to the director general of mineral and coal. If not agree, the concept of the letter is
returned to the director
9. Director general of minerals and coal checks consent recommendations of export approval. if it
agrees the concept of export approval recommendation is signed and submitted to the integrated
 information and investment services space. if it does not agree, the concept of export approval
recommendation shall be returned to the secretary of the mineral and coal general directorate for
review.
10. Coordinator of integrated information and investment service space announces the result of
approval or rejection of application for recommendation of export approval through ministry
director general of mineral and coal website.
11. An integrated information service and investment service officer shall submit a document of
approval or rejection to the applicant.
12. The applicant receives approval or rejection documents in the integrated information and
investment services space.