IUJP is the legality for business actors who want their company to engage in mining services, in Permen ESDM No.7 of 2020 clearly stated in Article 54 section 1 that, about Procedures for Granting of Areas, Licensing, and Reporting in Mineral and Coal Mining Business Activities. The Minister gives Mining Services Business License for Mining Services Business actors to conduct Mining Services Business activities throughout Indonesian territory;

—-

• Law No. 4 of 2009 concerning Mineral and Coal Mining (State Gazette of the Republic of Indonesia No. 4 of 2009, Supplement to the State Gazette of the Republic of Indonesia No. 4959);

• Presidential Regulation (Perpres) No. 68 of 2015 concerning the Ministry of Energy and Mineral Resources (State Gazette of the Republic of Indonesia No. 132 of 2015) as amended by Presidential Regulation (Perpres) No. 105 of 2016 concerning Amendment to Presidential Regulation (Perpres) No. 68 of 2015 concerning the Ministry of Energy and Mineral Resources (State Gazette of the Republic of Indonesia No. 289 of 2016);

• Regulation of the Minister (Permen) of Energy and Mineral Resources No. 25 of 2015 concerning Delegation of Authority for Granting Licensing of Mineral and Coal Mining in order to the Implementation of One Stop Services (PTSP) to the Head of Investment Coordinating Board (State Gazette of the Republic of Indonesia No. 1187 of 2015);

• Regulation of the Minister (Permen) of Energy and Mineral Resources No. 13 of 2016 concerning Organization and Administration of the Ministry of Energy and Mineral Resources (State Gazette of the Republic of Indonesia No. 782 of 2016);

• Regulation of the Minister (Permen) of Energy and Mineral Resources No. 7 of 2020 concerning Procedures for Granting of Areas, Licensing, and Reporting in Mineral and Coal Mining Business Activities (State Gazette of the Republic of Indonesia No. 220 of 2020);

• Minister of Energy and Mineral Resources Decree No. 1796 K/30MEM/2018 of 2018 (MoEMR Decree / Kepmen) concerning Implementation Guidelines for Request, Evaluation, and Issuance of Licenses in the Field of Mineral and Coal Mining;

SK Kepala BKPM – JDIH

(Decree of the Head of the Investment Coordinating Board – Documentation Network and Law Information)

Stipulates: DECREE OF THE HEAD OF THE INVESTMENT COORDINATING BOARD CONCERNING THE PROVISION OF MINING SERVICES BUSINESS LICENSE TO PT AKSO MANDIRI ENERGI

(PT AME)

NOMOR SK PT AME : 87/1/IUJP/PMDN/2020. Types and lines of business services granted to PT AME are:

“Mining Services Business License, hereinafter abbreviated as IUJP, is a license granted to conduct mining services business activities.”

This IUJP is provided by the Minister if mining service business activities are conducted throughout the territory of Indonesia.

The granting of this IUJP is based on a request from a Business Entity, which in this case is the Company, by meeting the specified administrative and technical requirements. In accordance with its authority through Indonesian Investment Coordinating Board (BKPM) or province delegation of One Stop Service (PTSP).

PT AME has been granted a Mining Services Business License (IUJP) based on procedure and completeness stage of terms, verification result stated that AME has fulfilled administration requirements, technical, environment and financial.

Liability and prohibition for Mining Services Company AME

In addition to the fulfillment of the legality of the IUJP as a mining service company licenses, in Permen ESDM No.7 of 2020, also regulates what are the obligations of the mining service company as the holder of IUJP, among others:

1. Prepare and submit work plans to the Minister or governor in accordance with their respective authorities. With regard to the obligation to prepare and submit the work plan, it will be issued approval of the work plan and budgetary fees provided based on the evaluation of the results of supervision of business activities from the previous year period.

2. Apply the rules of good mining techniques, that is, to appoint operational responsibility as the highest leader in the field, and to have competent mining technical personnel in accordance with the provisions of legislation

3. Prioritize the use of local goods and services as well as local workforce; and

4. Submitting written reports periodically to the implementation of its business activities to the Minister or the governor in accordance with their authority through the head of mining engineering.