AKSET TRANSLATION

PRESS RELEASE

Agreement between the Ministry of Energy and Mineral Resources

(MEMR) & Bank of Indonesia (BI) Concerning Regulation on the
Obligation to Use Rupiah

MINISTRY OF ENERGY AND MINERAL RESOURCES

OF THE REPUBLIC OF INDONESIA

PRESS RELEASE
NUMBER: 40/SJI/2015
DATE: JULY 01, 2015

AGREEMENT BETWEEN THE MEMR & BI

CONCERNING REGULATION ON THE OBLIGATION TO USE RUPIAH

As it is known that BI, as the Monetary Authority has issued Bank Indonesia Regulation (PBI) No.
17/3/PBI/2015 on the Obligation to Use Rupiah within the Territory of the Unitary State of the
Republic of Indonesia, stipulated on March 31, 2015 and shall be valid as of July 1, 2015.
This BI Regulation was enacted with an objective and spirit to enhance the depth of the Rupiah
market in the framework of stabilizing exchange rate, which in the end is expected to encourage the
national economy’s stability.

In responding to this matter, we, the MEMR, fully support the Implementation of PBI 17/3/2015 on
the Obligation to Use Rupiah within the Territory of the Unitary State of the Republic of Indonesia
and will actively contribute in order to achieve the maximum objective for the issuance of this policy.
The MEMR has observed and understood that there are plenty of suggestions and considerations
from business actors in various sectors, including Oil and Gas, Electricity, Mining, as well as New and
Renewable Energy in relation to this policy.

The suggestions have been communicated and coordinated seriously to BI as the monetary
authority. The MEMR and BI have reached an agreement that:

1. They shall cooperate to arrange for implementation steps in order that the implementation
of this regulation in the energy sector can function well and achieve the maximum objective,
as well as to anticipate issues that may arise.
 2. Understanding the specific characteristics of an Industry in the energy sector will result in the
impossibility of the outright implementation of the PBI for aggregate transactions and the
necessity to understand profoundly the characteristics of transactions, that may be
categorized as follows:

 Category 1: Transactions which are able to directly implement the provisions of the
PBI, for example, lease of offices/houses/vehicles, salary payment for Indonesian
employees, various support services;

 Category 2: transactions which require time to implement the provisions of the PBI,
for example: fuel, import transactions through local agents, long term contracts,
multi- currency contracts;

 Category 3: transactions which are fundamentally difficult to fulfill the provisions of

the PBI due to various factors, inter alia, the government regulations. For example:
salary payment for expatriates, drilling services and lease of ships.

3. For transactions in Category 1 above, a transition period for the maximum of 6 (six) months
shall be given.

4. For transactions in Category 2 above, transactions in fixed term contracts continued to be

executed in foreign currencies shall be surveyed with a possibility of amendment.

5. For transactions in Category 3, business actors may continue to use foreign currencies.

6. The MEMR and BI will form a group with duties in relation to the implementation of this
regulation which will facilitate and convince that the business realm has no difficulties and
business activities will function normally.

7. The MEMR and BI will issue procedures for the implementation of PBI number 17/3/PBI/2015
in the energy sector.

Head of the Public Communications Centre

Dadan Kusdiana

July 2, 2015
ARFIDEA KADRI S AHET APY -ENGEL T ISNADISASTRA
Please contact Johannes C. Sahetapy-Engel [jsahetapyengel@aksetlaw.com] for further information.

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