MINISTER OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

REGULATION OF MINISTER OF ENERGY AND MINERAL RESOURCES

NUMBER: 17 YEAR 2010

CONCERNING

PROCEDURES ON BENCHMARK PRICE DETERMINATION OF

MINERAL AND COAL SALES

BY THE GRACE OF GOD ALMIGHTY

MINISTER OF ENERGY AND MINERAL RESOURCES

Considering : that to implement the provisions of Article 85 paragraph (4) Gover

nment
Regulation Number No. 23 Year 2010 concerning Implementation of
Activities of Mineral and Coal Enterprises, need to establish Regulation
of the Minister of Energy and Mineral Resources concerning Procedures on
Benchmark Price Determination of Mineral and Coal Sales;

Referring to : 1. Law No. 30 of 2007 concerning Energy (Gazette Republic of Indo

nesia
Year 2007 Number 96, Supplement Gazette of Republic of Indonesia
Number 4746);
2. Law No. 4 Year 2009 concerning Mineral and Coal Ming ( Gazette of
the Republic of Indonesia Year 2009 Number 4, Supplement Gazette of
Republic of Indonesia Number 4959);
3. Government Regulation No. 23 Year 2010 concerning Implementation of
Activities of Mineral and Coal Ming Enterprises (Gazette of the Republic
of Indonesia Year 2010 Number 29, Supplementary Gazette of the
Republic of Indonesia No. 51 11);
4. Presidential Regulation No. 5 Year 2006 concerning National Energy
Policy;
 5. 84/P Presidential Decree No. 2009 October 21, 2009;
6. Regulation of the Minister of Energy and Mineral Resources No. 0030
Year 2005 dated July 20, 2005 concerning Organization and Governance
Ministry of Energy and Mineral Resources;
7. Regulation of the Minister of Energy and Mineral Resources No. 34 Year
2009, concerning Priority to Supply for the Domestic Demand for Mineral
and Coal for the sake of the country (State Gazette Republic of Indonesia
Year 2009 No. 546);
DECIDED:

Determine : MINISTERIAL REGULATION OF ENERGY AND MINERAL

RESOURCES CONCERNING PROCEDURE ON BENCHMARK
PRICE DETERMINATION OF MINERAL AND COAL SALES.

CHAPTER l
GENERAL PROVISIONS
Article 1
Referred to in this regulation as :

1. Minerals are inorganic compound formed in the nature, which have a specified
physical and chemical characteristics as well as regular crystal composition or
combination there of which form bitumen, wether in form of loose or coherent.
2. Coal is a carbonaceous sedimentary organic compounds formed naturally from t
he
remaing plants.
3. Ming Business License hereafter called IUP of Production Operation is a busi
ness
license granted following the completion of activities set forth in IUP of Explo
ration
to undertake activity of production operation.
4. Specific Ming Business License hereafter called IUPK of Production Operation
is
a business license granted following the completion of activities set forth in I
UPK of
Exploration to undertake activity of production operation in the specific ming b
usiness
area.
5. Steam (thermal) coal is used as a fuel at power plants and steam engines in
the
industry, They generally have a lower calorific value and having fly ash higher
than
the coking (Metallurgical) coal.
6. Coking (Metallurgical) Coal is a coal that is used in metal smelting or meta
llurgical
7. Metallic Mineral Price is the price agreed upon metallic mineral sellers and
buyers at
a particular time or period with refer to benchmark price of Minerals.
 8. Price of coal is the price agreed upon coal buyers and sellers at a certain
time with
refer to the Standard Price of Coal.
9. Direct Sales (spot sales ) is the sale of minerals or coal for a period of l
ess than 12
(twelve) months.
10. Sale of Certain Term (term sales) is the sale of minerals or coal for a per
iod of 12
(twelve) months or more.
11. Coal For Specific Purposes is a coal utilized for purposes of himself to th
e production
process and or coal for the development of lagging regions.
12. Minister is the minister in charge of mineral and coal ming affairs.
13. Director General is the director general having the task and responsibiliti
es in the field
of mineral and Coal ming.

Article 2

(1) Ming Business License hereafter called IUP of production operation holders
and
Specific Mining Business License hereafter called IUPK of production operation
holders of mineral and coal production must sell their produced mineral and coal
by
referring to the benchmark price both for domestic sales and export, including t
o its
affiliated business entities.
 (2) The benchmark price as referred to in paragraph (1) is determined based on
market
mechanism in accordance with the price and/or generally accepted in the internat
ional
market.
(3) Affiliated business entities as referred to in paragraph(1) is a business e
ntity that has
direct shareholder ownership of IUP of production operation holders and /or IUPK
of
production operation holders of mineral and coal productions.

Article 3

To any business entity that can indirectly influence the decision of IUP product
ion
operation holders and IUPK production operation holders of mineral and coal prod
uctions
can be regarded as an affiliated business entity as defined in Article 2 point (
3).

CHAPTER II
BENCHMARK PRICE OF MINERAL

Article 4

Benchmark price of minerals consists of:

a. Benchmark price of metallic mineral;
b. Benchmark price of non-metallic minerals; and
c. Benchmark price of rocks.

Article 5

(1) the Director General on behalf of the Minister set a benchmark price of meta
llic
minerals as referred to in Article 4, letter a every month for each mine commodi
ty
based on a formula that refers to the price of metallic minerals in accordance w
ith
market mechanisms and or in accordance with the price metallic minerals generall
y
accepted in the international market.
(2) the benchmark price of the metallic minerals as referred to in paragraph (1
) shall be
used as a reference price for the IUP of production operation holders and IUPK o
f
production operation holders of metallic minerals production in the sale of meta
llic
minerals.
(3) the benchmark price of the metallic minerals as referred to in paragraph (2
) is a
metallic mineral price in form of metal determined at sale point as Free on Boar
d on
shipping carrier (vessel) for each metallic mineral ming commodities.
(4) Further provisions on the formula determing the benchmark price of metallic
mineral
for each mine commodity will be regulated by the Director General.

Article 6

(1) IUP of production operation holders and IUPK of production operation holder
s of
metallic mineral production shall conduct metallic minerals sales in form of ore
,
concentrates, or intermediate products, and metal in accordance with the provisi
ons of
law and regulations.
(2) Sales of metallic minerals as referred to in paragraph (1) can be done by w
ay of sale of
metallic minerals:
 a. in form of metal in a Free on Board on vessel;
b. in form of metal in a Free on Board on Barge;
c. in form of ore, concentrates, or intermediate products for Free on Board on
vessel
or Free on Board on barge;
d. up to end users in the country; or
e. the Cost Insurance Freight or Cost and Freight,

(3) IUP of production operation Holders and IUPK of production operation holder
s of
metallic mineral production in the sale of metallic minerals as referred to in p
aragraph
(2) shall use Indonesian flag carrier services in accordance with provisions of
laws and
regulations.
(4) In case of IUP of production operation holders and IUPK of production opera
tion
holders of metallic mineral production execute metallic minerals sales as a Cost
Insurance Freight as referred to in paragraph (2) letter e, shall give priority
to the use
of national or domestic insurance companies services.
(5) In case of IUP of production operation holders and IUPK of production opera
tion
holders of metallic mineral productions using the services of a surveyor in orde
r to
verify the sales activities of metallic minerals as referred to in paragraph (2)
shall use
surveyor appointed by the Director General on behalf of the Minister.

Article 7

(1) IUP of production operation holders and IUPK of production operation holders
of
metallic mineral productions in calculating sales prices metallic minerals as re
ferred to
in Article 6 paragraph (2) letter a are obliged to follow the benchmark price of
metallic
minerals.
(2) IUP of production operation holders and IUPK of production operation holder
sof
metallic mineral productions in calculating the sale price of metallic minerals
as
referred to in Article 6 paragraph (2) letter b up to letter e are obliged to fo
llow the
reference price of metallic minerals plus or minus adjustment costs approved by
the
Director General on behalf of the Minister.
(3) The adjustment cost for the price addition or reduction as referred to in p
aragraph (2),
among others, includes the elements:
a, the cost of transportation by using a barge;
b. surveyor fees;
c, the cost of transhipment;
d. treatment cost and refining cost of metal and or payable metal, and / or
e. insurance costs.
(4) Further provisions concerning the procedures for determining the amount of
adjustment costs as referred to in paragraph (2) and paragraph (3) is regulated
by the
Director General.
Article 8
In calculating the Non Tax State Revenue which should be paid by IUP of producti
on
operation holders and IUPK of production operation holders of metallic mineral p
roduction
in accordance with the provisions of law and regulations, the following provisio
ns therefore
should be apllied:
a. metallic mineral sales as referred to in Article 6 paragraph (2) letter a, sh
all use:
1. metallic mineral prices if the price is higher than the benchmark price of me
tallic
minerals; or
2. metallic mineral benchmark price, if the price of metallic minerals equal or
lower than
the benchmark price of metallic minerals.

b. Metallic mineral sales as referred to in Article 6 paragraph (2) letter b up

to letter e shall
use:
1. metallic mineral prices if the price is higher than the benchmark price
of metallic mineral after the reduction or addition of adjustments cost; or
2. benchmark price of metallic mineral after the reduction or addition of adjus
tment
costs when the price is equal or lower than the benchmark price of metallic mine
rals
after reduction or addition of adjusment costs.

Article 9

(1) The Governor set a benchmark price of non-metallic minerals as referred to i

n Article 4
letter b of each month for each ming commodity within 1 (one) province based on
market mechanisms after coordinating with Director General.
(2) Regent / Mayor set a benchmark price of rock as letter as referred to in Ar
ticle 4 c
every month for each mining commodities within 1 (one) Region / city based on
market mechanism after coordinating with the governor.
(3) Benchmark price of non-metallic minerals and rocks as referred to in paragr
aph (1) and
paragraph (2) shall be used as a reference of price in the sale of non-metallic
minerals
and rocks by IUP of production operation holders of non minerallic minerals and
rocks.
(4) In calculating the liabilities of Non Tax State Revenue and or local tax lia
bility of the
IUP of production operation holders of non-metallic minerals and rocks, should b
e
based on :
a. price of non-metallic minerals and rocks, when mineral prices non-metal and
rock higher than the benchmark price as referred to in paragraph (1) and
paragraph (2); or
b. benchmark price of non-metallic minerals and rocks as referred to in paragra
ph
(1) and paragraph (2), if price of non-metallic minerals and rocks is lower than
or equal to the benchmark price non-metallic minerals and rocks.
CHAPTER Ill
BENCHMARK PRICES OF COAL
Article 10

Coal benchmark price consists of:

a. benchmark price for steam (thermal) coal, and
b. benchmark price for coking (metallurgical) coal.

Article 11

(1) The Director General on behalf of the Minister set a benchmark price for st
eam
(thermal) coal and coking (Metallurgical) coal as referred to in Article 10 ever
y
month
based on a formula that refers to the average coal price index in accordance wi
th
market mechanisms and or appropriate with prices generally accepted in the
international markets.
(2) The benchmark price of coal as referred to in paragraph (1) shall be used a
s
a reference of coal price for the IUP of production operation holders and IUPK o
f
production operation holders of coal in conducting coal sales.
(3) Coal benchmark price as referred to in paragraph (2) is the price of coal a
t sale point
as a free on vessel.
(4) Further provisions on the formula for pricing benchmark of coal for steam (
thermal)
coal and coking (Metallurgical) coal is regulated by the Director General.

Article 12

(1) IUP of production operation holders and IUPK of production operation holder
sof
coal could conduct the sale of coal in accordance with the provisions of the law
and
regulations..
 (2) Sales of coal as referred to in paragraph (1) may be done by the sale of co
al:
a. in Free on Board on vessel scheme;
b. In Free on Board on barge scheme;
c. in one island to the end userscheme; or
d. In the Cost Insurance Freight or Cost and Freight scheme.
(3) IUP of production operation holders and IUPK of production operation holder
s of
coal production in carrying coal sales as referred to in paragraph (2) shall giv
e priority
to use the Indonesian flag carrier services in accordance with the provisions of
the
law and regulation.
(4) In case of IUP of production operation holders and IUPK of production opera
tion
holders of coal conducting coal sales in Cost Insurance Freight scheme as referr
ed to
in paragraph (2) letter d, shall have to prioritize the use of national or domes
tic
insurance service companies.
(5) In case of IUP of production operation holders and IUPK of production opera
tion
holdersof coal using the surveyor services, in verifying the activities of coal
sales as
referred to in paragraph (2), must use a surveyor appointed by the Director Gene
ral
on behalf of the Minister.
 Article 13

(I) IUP of production operation holders and IUPK of production operation holders
of coal
in calculating coal price as referred to in paragraph 12 point (2) letter a shou
ld refer to
benchmark price of coal.
(2) IUP of production operation holders and IUPK of production operation holders
of coal
in calculating the price of coal sales as referred to in article 12 paragraph (2
) b, c, and
d are obliged to follow the coal price reference and supplemented or reduced cos
t
adjustment approved by the Director General on behalf of the Minister.
(3) The cost adjustment for the addition or reduction in price as referred to i
n paragraph
(2), among others, includes the elements :
a. transportation costs by using a barge (barge);
b. surveyor costs;.
c. costs transhipment;
and or
d. insurance costs.
(4) Further provisions concerning the procedures for calculating the amount of
adjustment
costs should be as referred to in Regulation of the Director General.

Article 14

In calculating the liabilities of State Revenue by Operation Permit holders of M

ing Permits
and Coal of Production in accordance with the provisions of legislation
then apply the following provisions:
a. coal sales Article 12 paragraph (2) letter a, shall use:
1. price of coal when coal prices are higher than reference price of coal; or
2. reference price of coal, when coal prices are equal or more lower than the r
eference
price of coal.
 b. coal sales asas referred to inArticle 12 paragraph (2) letter b, c, and d mu
st use:
1. price of coal when coal prices are higher than coal benchmark price after re
duced or
increased costs adjustments; or
2. coal benchmark price after reduced or increased costs adjustment if the pric
e of coal
is equal to or lower than the benchmark price of coal, less or plus the cost of
adjustment.

CHAPTER IV
REPORT
Article 15

(1) IUP of production operation holders and IUPK of production operation holder
s of
mineral and coal productions must submit a report every month on the sale of met
allic
minerals and coal produced no later than the 10 of the next month to the Directo
r-
General, Governor, or Regent/Mayor within their authority with copies sent to:
a. Governor, Regent / Mayor if the IUP and IUPK of mineral and coal production
are issued by the Minister;
b. Director-General and Regent/Mayor if the IUP of mineral and coal production
is
issued by the governor; or
 c. Director-General and the governor if the IUP of mineral and coal productions
is
issued by Regent/Mayor.
(2) Consolidated sales report of metallic minerals and coal as as referred to i
n paragraph
(1) at least contain of the selling price, sales volume, quality, point of sale,
cost
adjustments, and users in domestic and or country of destination, and attached b
y
supporting documents.
(3) Supporting documents as referred to in paragraph (2) consists of copies con
taing at
least :
a. Invoice of metallic mineral or coal sales;
b. Bill of Lading/Air Way Bill and Certificate of Weight;
c. Analysis result certificate of metallic minerals and coal quality;
d. Time sheet of shipment;
e. Adjustment costs at the point of sale not in the Free on Board on freighter
(vessel) point;
f. Invoice and or contract of barging at the point of sale not in the Free on B
oard on
freighter (vessel) point; and
g. Notification of export of goods and surveyor report of export when the sale
of
metallic mineral or coal for export purposes.

Article 16

(1) IUPof production operation holders of non metallic mineral and rocks must s
ubmit a
report every month on the sale of non metallic minerals and rocks produced no la
ter
than the 10 of the next month to the Director-General, Governor, or Regent/Mayor
within their authority with copies sent to:
a. Governor, Regent / Mayor if the IUP of non metallic minerals and rocks
production is issued by the Minister;
b. Director-General and Regent/Mayor if the IUP of non metallic minerals and
rocks production is issued by the governor; or
c. Director-General and the governor if the IUP of non metallic minerals and ro
cks
productions is issued by Regent/Mayor.
 (2) Consolidated sales report of non metallic minerals and rocks as as referred
to in
paragraph (1) at least contain of the selling price, sales volume, quality, poin
t of sale,
cost adjustments, and users in domestic and or country of destination, and attac
hed by
supporting documents.
(3) Supporting documentsas referred to in paragraph (2) consists of copy contai
ning at
least :
a. Invoice of non metallic minerals and rocks sales;
b. Bill of Lading/Air Way Bill and Certificate of Weight;
c. Analysis result of non metallic minerals or rocks quality, for a certain non
metallic mineral or rocks shall be completted by related certificate;
d. Notification of exports of goods and surveyor report of export when the sale
of
non metallic mineral or rocks for export purpose.
CHAPTER V
SALES EXECUTION OF
METALLIC MINERALS AND COAL

Article 17

(1) Sales of metallic minerals can be done in the form of direct sales (spot) a
nd / or sales
of a certain period (term) based on a price agreement between IUP of production
operation holders and IUPK of production operation holders of metallic minerals
with
metallic mineral buyers that refers to a benchmark price of metallic minerals.
(2) Agreement of the selling price of metallic minerals as referred to in parag
raph (I)
before the stipulated in the contract of sale must be submitted prior to the Min
ister
through the Director General.
(3) Signing the contract of metallic minerals sales and buys, as a follow up of
the price
agreement of metallic mineral sales as referred to in paragraph (2) shall be con
ducted in
the period as follows:
a. for metal products, at least 1 (one) months after the agreement of metallic
mineral prices is achieved; or
b. in form of ore, concentrate and /or intermediate product of metal minimum 3
(three) months after agreement of metallic mineral prices is achieved.
(4) Annual delivery schedule shall be reported to the Director General at the b
eginning of
the year and if there are changes of delivery schedule, the changes must be repo
rted
periodically.
(5) IUP of production operation holders and IUPK of production operation holder
s of
metallic mineral are required to adjust the price of metallic minerals for term
sales once
every 12 (Twelve) months.

Article 18

(1) Sales of coal can be done in form of direct sales (spot) and/or term sales b
ased on the
price agreement of the IUP of production operation holders and IUPK of productio
n
operation of coal and coal buyers with the following conditions:
a. coal price in direct sales (spot) should be refers to a benchmark price of c
oal in the
month in which coal shipments conducted; or
b. coal price in term sales should refer to the benchmark price of coal occured
in the
last 3 (three) months (average) before coal price agreement is made.
(2) The price agreement of coal sales as referred to in paragraph (1) before se
t forth in the
sales contract, must be submitted prior to the Minister through the Director Gen
eral.
(3) Signing the contract of coal sales and buys, as a follow up of the price agr
eement of
coal sales as referred to in paragraph (2) must be conducted in the period of no
late 1
(one) month after the price agreement is achieved.
(4) The first shipment of coal for the term sales must be made within no later t
han 2 (Two)
months after the signing of the contract of sale of coal and must be completed w
ithin a
maximum period of one (1) year.
(5) If the first shipment of coal as referred to in paragraph (4) is completed
within a period
of more than 1 (one) year, then the benchmark price of coal used as a reference
price is
the benchmark price of coal of the next year period.
(6) Schedule of annual shipments must be reported to the Director General at th
e
beginning of the year, and if there are schedule changes of the delivery, it mus
t be
reported periodically.
 (7) IUP of production operation holders and IUPK of production operation holder
s of Coal
are required to adjust the coal price of term sales once every 12 (twelve) month
s.

Article 19

(1) Low rank coal can be sold with the benchmark price out of the provision of
the price
reference as referred to in Article 11, Article 12, and Article 13 and is set ba
sed on
low rank coal benchmark price.
(2) For the benchmark price of low rank coal, is set based on a formula that re
fers to the
average of coal price index of low rank coal associated to the prevailing price
generally in the market.
(3) Further provisions on the formula for pricing low rank coal benchmarks as r
eferred to
in paragraph (2) is regulated by the Director General.

Article 20

In calculating the liabilities of State Revenue by IUP of production operation h

olders and
IUPK of production operation holders of coal which sells low rank coal in accord
ance with
the provisions of legislation then following provision apply :

a. coal sales as referred to in Article 12 paragraph (2) letter a low rank coal
shall use:
1. price of coal when coal prices are higher than low rank coal benchmark price
; or
2. low rank coal benchmark price, if the coal price equal or lower than the ben
chmark
price of low rank coal.
b. coal sales as referred to in Article 12 paragraph (2) b, c, and d for the lo
w rank coal
shall use:
1. low rank coal price if coal prices higher than low rank coal benchmark price
after
reduction or addition of costs of adjustment; or
 2. low rank coal benchmark price after reduction or addition of adjustment cost
s if the
price of coal is equal to or lower than the benchmark price of low rank coal aft
er
reduction or addition of adjustment cost.

Article 21

(1) Certain types of coal used in the country can sold at a price below the coa
l price
reference approved by the Director General on behalf of the Minister.
(2) Coal certain types as referred to in paragraph (1), includes the following:

a. fine coal;
b. reject coal; and
c. coal with certain impurities.
(3) Coal for specific purposes can be sold in domestic at a price below the coa
l price
reference approved by the Director General on behalf of the Minister.
(4) Further provisions concerning the determination of certain types of coal as
referred to
in paragraph (2) and the determination of coal for certain purposes as referred
to in
paragraph (3) regulated by the Director General.
Article 22

In calculating the liabilities of Non Tax State Revenue by IUP of production ope
ration
holders and IUPK of production operation holders of coal which produce certain t
ypes of
coal or coal for a particular purpose subject to Non Tax State Revenue in accord
ance with
the sale price of certain type of coal or coal for a certain purposes.

CHAPTER VI
ADMINISTRATIVE SANCTIONS
Article 23

(1) IUP of production operation holders or IUPK of production operations holder

s who
violate the provisions as referred to in paragraph 2 paragraph (I), Article 3, A
rticle 5
paragraph (2), Article 6 paragraph (3), subsection (4), or paragraph (5), Articl
e 7
paragraph (1) or paragraph (2), Article 8 letter a or b, Article 9 paragraph (3)
, Article
11 paragraph (2), Article 12 paragraph (3), subsection (4), or paragraph (5), Ar
ticle
13 paragraph (1) or paragraph (2) Article 14 letter a or b, Article 15 paragraph
(I),
Article 16 paragraph (I), Article 17 paragraph (2), paragraph (3), subsection (4
), or
paragraph (9), Article 18 paragraph (2), paragraph (3), subsection (4), paragrap
h (6),
or verse (7), Article 20 letter a or b, Pasal21 paragraph (1) or paragraph (3),
or
subjected Article 22 are charged by administrative sanctions.
(2) The administrative sanctions as referred to in paragraph (1) may form:
a. written warning;
b. suspension of sales of metallic minerals, non metallic minerals, coal, or ro
ck; or
c. The revocation of IUP of production operation or IUPK of production operatio
ns.
(3) The administrative sanctions as referred to in paragraph (1) are given by t
he Director
General on behalf of the Minister, governors, or Regent/Mayor within their autho
rity.
Article 24

(1) The administrative sanctions in form of a written warning as referred to in

Article 23
paragraph (2) letter a subject to at maximum 3 (three) times.
(2) In case the holders of IUP and IUPK of production operation does not carry
out his
duties after the end term of the third written warning, subject to administrativ
e
sanctions, in form of temporary suspension of sales of metallic mineral, non met
allic
minerals, coal, or rocks.
(3) temporary suspension of sale of metallic minerals, non metallic minerals, c
oal, or rocks
as referred to in paragraph (2) subject to a maximum period of 3 (three) months.

(4) Tempoprary termination of sales of metallic minerals, non metallic minerals

, coal, or
rock as referred to in paragraph (3) at any time can be revoked if the holders o
f IUP or
IUPK of production operations have fulfilled their obligations during the imposi
tion of
sanctions.
Article 25

Administrative sanctions in form of revocation of IUP and IUPK of production ope

ration as
referred to in Article 23 paragraph (2) letter c subject to the holders of IUP a
nd IUPK of
production operation imposed administrative sanctions as referred to in Article
23
paragraph (2) letter b does not perform liabilities up to the expire of the impo
sition of
sanction of temporary suspension of sale of metallic minerals, non metallic mine
rals , coal, or
rocks.

CHAPTER VII
TRANSITIONAL PROVISIONS
Article 26

At this Ministerial Regulation shall come into force:

1. Holders of contracts of works and agreement of work on coal mining exploitat
ion in
conducting sales activities on minerals or coal must follow the provisions in th
is
ministerial regulation.
2. Direct sales (Spot sales) contract which has been signed by IUP of Productio
n
Operation holders, work contract, or agreement of work on coal mining exploitati
on
under the provisions of legislation prior to enactment of this ministerial regul
ation,
within a period of no later than 6 (six) months shall be adjusted to the provisi
ons of
this regulation.
3. Certain term sales (term sales) contract signed by holders of IUP of Product
ion
Operation, contract of work, or agreement of work on coal mining exploitation ba
sed
on the provisions of the legislation prior to enactment of this ministerial regu
lation not
late within 12 (twelve) months, shall be adjusted with the provisions of this mi
nisterial
regulation.

Article 27
 As this Ministerial Regulation come into force on contract of direct sales (spo
t) and term
sales that has been signed by holder of IUP of Production Operation, Contract of
Work, or
work agrement on coal mining exploitation, as long as they conduct re-negotiatio
n for price
adjustment in the sales contract in accordance with instructions of the Minister
or Director
General, do not apply the provisions as referred to in Article 26 number 2 or nu
mber 3.

CHAPTER VIII
FINAL PROVISIONS
Article 28

This Ministerial Regulation shall come into force on the date of enactment.
For publics cognizan, the ministerial regulation shall be promulgated by placing
it in state
news of Republic of Indonesia.
Stipulated in Jakarta
Dated 23 September 2010
MINISTER OF ENERGY AND MINERAL RESOURCES
Signed.

Darwin Zahedy Saleh

Promulgated in Jakarta
Dated 23 September 2010
MINISTER OF JUSTICE and Human Rights
REPUBLIC OF INDONESIA
Sgd.
Patrialis Akbar
NEWS OF THE REPUBLIC OF INDONESIA YEAR 2010 NUMBER 463

Accordance with the original copies

MINISTER OF ENERGY AND MINERAL RESOURCES
Head of Law and Public Relations

Sgd

Sutisna Prawira