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JOINT DECREE OF THE

MINISTER OF INDUSTRY AND TRADE No. 89/MPP/Kep/2/2002, MINISTER OF MARINE AND FISHERY No. SKB.07/MEN/2002 AND STATE MINISTER FOR THE ENVIRONMENT No. 01/MENLH/2/2002

DATED FebruarY 14, 2002 ON

SUSPENSION OF EXPORT OF SEA SAND THE MINISTER OF INDUSTRY AND TRADE ,

MINISTER OF MARINE AND FISHERY AND STATE MINISTER FOR THE ENVIRONMENT, Considering :

a. that in the framework of avoiding broader environmental, ecosystem and marine habitat damages resulting from the uncontrollable exploitation of sea sand, it is necessary to re-arrange the sea sand exploitation and export system more coordinately;

b. that while the sea sand exploitation and export system is re-arranged, it is deemed necessary to discontinue export of sea sand;

c. that in relation thereto, it is necessary to issue a joint decree of the Minister of Industry and Trade, Minister of Marine and Fishery and State Minister for the Environment.

In view of :

1. Law No. 11/1967 on mining basic provisions (Statute Book of 1967 No. 22, Supplement to Statute Book No. 2831);

2. Law No. 17/1985 on ratification of the United Nation Convention on Marine Law of 1982;

3. Law No. 7/1994 on ratification of the agreement establishing the World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564); 4. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to

Statute Book No. 3612);

5. Law No. 23/1997 on the environmental management (Statute Book of 1997 No. 68, Supplement to Statute Book No. 3699);

6. Law No. 22/1999 on regional administration (Statute Book of 1999 No. 60, Supplement to Statute Book No. 3839);

7. Government Regulation No. 19/1999 on control over sea pollution and/or destruction; 8. Government Regulation No. 27/1999 on environmental impact analysis;

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authority of provinces as autonomous regions;

10.Presidential Decree No. 228/M/2001 on the establishment of Gotong Royong Cabinet;

11.Presidential Decree No. 102/2001 on the status, tasks, functions, authority, organizational structures and working arrangements of ministries;

12.Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 on General Provisions in the Export Field as already amended several times the latest by Decree of the Minister of Industry and Trade No. 57/MPP/Kep/I/2002.

Observing :

The Memorandum of Understanding between the Minister of Industry and Trade and the Governor of Riau Province on February 7, 2002.

DECIDES : To stipulate :

THE JOINT DECREE OF THE MINISTER OF INDUSTRY AND TRADE, MINISTER OF MARINE AND FISHERY AND STATE MINISTER FOR THE ENVIRONMENT ON SUSPENSION OF EXPORT OF SEA SAND.

Article 1

Referred to as sea sand in this joint decree shall be all kinds of sand originating or mined from sea, which is subsumed in tariff heading/HS Ex 2504.90.000.

Article 2

1. Export of sea sand from all territories of the Republic of Indonesia shall be stopped provisionally.

2. The suspension of the export as meant in paragraph (1) shall be 3 (three) months at the maximum, starting from the date of enforcement of this joint decree.

Article 3

1. Companies already having and executing selling contracts or agreements with business partners abroad before the date of stipulation of this joint decree still can export sea sand up to the stipulation of a sea sand exploitation and export system.

2. Companies planning to export as meant in paragraph (1) shall be obliged to notify their selling contracts or agreements to the governor, in the case of companies having sea sand mining business licenses issued by the central government and/or governor, or regents/mayors in the case of companies having sea sand mining business licenses issued by regents/mayors, with a copy made available to the Minister of Industry and Trade and Minister of Marine and Fishery, by enclosing :

a. copy of selling contract or agreement already validated by the Embassy/Representative Office of the Republic of Indonesia in countries where the business partners are domiciled plus copy of manifest over the past three months;

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c. copy of decision on environmental feasibility on the basis of results of environmental impact analysis;

d. copy of dredging permit already validated by licenser institution;

e. copy of evidence of legitimate payment of obligations, such as taxes and/or other levies including those owed in accordance with provisions of law in force;

f. plan for exploitation and export of sea sand by time and quantity in accordance with selling contract or agreement as well as mentioning transport plan, including name of transport company and ship equipped by monitoring device stipulated by the Ministry of Marine and Fishery.

1. The provisions in paragraph (2) letters a,b,c,d and e shall be accompanied by showing up the original documents.

Article 4

1. The governor or regents/mayors shall give certificates of export of sea sand to companies fulfilling the requirements as meant in Article 3 in regions where the sea sand comes from to be used in executing export in accordance with the plan for exploitation and export of sea sand as meant in Article 3 paragraph (2) letter f.

2. In addition to matters connected with identity of company, the certificate of export sea sand as meant in paragraph (1) shall also mention :

a. quantity of sand to be exported; b. export price;

c. time of export realization; d. name of transport ship; and

e. destination country and name of importer. Article 5

Upon the suspension of the export of sea sand, the Minister of Industry and Trade, Minister of Marine and Fishery and State Minister for the Environment shall prepare a sea sand exploitation and export system.

Article 6

Supervision over the implementation of the provisions on the suspension of export of sea sand as stipulated in this joint decree shall be executed by the Minister of Industry and Trade, Minister of Marine and Fishery and State Minister for the Environment as well as institutions concerned in accordance with their respective tasks, functions and scopes of authority.

Article 7

This joint decree shall come into force as from February 18, 2002.

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Stipulated in Jakarta On February 14, 2002

THE MINISTER OF INDUSTRY AND THE MINISTER OF MARINE AND FISHERY

TRADE

sgd. sgd.

RINI.M.S SOEWANDI ROKHIM DAHURI

THE STATE MINISTER FOR THE ENVIRONMENT sgd.

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