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Minerals Report - International Seabed Authority

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Those who are entitled to the land (other than state land) must let the<br />

mining works on the land to take place if they have been properly informed of<br />

the license and have been properly and fairly compensated.<br />

The Minister of Mines and Energy decides the amount of<br />

compensation once formality for the devolution of the right has taken place.<br />

If the owner of the land disagreed with the amount decided by the Minister,<br />

the amount shall be determined by the relevant district court and all those<br />

costs shall be borne by the company (article 12).<br />

The owner of the land is obliged to let the mining works proceed. The<br />

company must pay to the state a fixed fee, exploitation fee, and other fees<br />

(article 15). The amount of the fees is determined by the Government<br />

Regulations. The Department of Mines and Energy regulates and supervises<br />

the implementation of oil and gas exploration and exploitation (article 16)<br />

including determining the conditions for permission to use foreign experts /<br />

personalities to be employed in the oil and gas companies (article 17).<br />

Oil and gas companies are obliged to report their compliance with all<br />

the guidance issued by the Department of Mines and Energy (article 17<br />

paragraph 3). All mining rights of the oil and gas companies (which are not<br />

state companies) granted before the entry into force of Law 44/ 1960 were<br />

respected during a period of transition (which was decided by Government<br />

Regulation). The titleholders were given priority in considering them as<br />

contractor for the concession area. The mining rights of the state company<br />

that already existed before the entry into force of the Law 44 / 1960 became a<br />

new authorized mining right for the area concerned.<br />

Some violations of the provisions of this law are punishable by<br />

imprisonment and / or fine.<br />

3. Pertamina State Oil Company / Law No. 8 / 1971<br />

Indonesian oil and gas exploration gained momentum by the<br />

consolidation of state oil company Pertamina under Law number 8 / 1971. In<br />

fact, the Law number 8 / 1971 already established Pertamina under<br />

Government Regulation number 27 / 1968 which was later reconfirmed.<br />

INTERNATIONAL SEABED AUTHORITY 852

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