THE MINISTER OF FORESTRY

THE REPUBLIC OF INDON ESIA

21 April 2010
Number : S.10/Menhut-III/RHS/2010
Attachment :
Subject : Alleged Illegal Coal Mining Exploitation within State Forests area in East Kutai
District, East Kalimantan Province

The Regent of East Kutai

In Sangatta

Due to peoples complaint letter, which has been followed up through the Special
Identification in accordance with the Warrant Assignment of the Inspector General of the
Department of Forestry Number PT.53/III-SET.1/RHS/2009 dated March 12, 2010 into
allegations of mining activities in forest areas by PT Ridlatama Tambang Mineral, PT
Ridlatama Trade Powerindo, PT Investama Resources, PT Investmine Nusa Persada, PT
Swasembada Energi, PT Swasembada Bara and PT Jayakhisma Globe Indonesia in East Kutai
Regency of East Kalimantan Province, we hereby inform you as follows:

1. There are companies holding exploration licenses and or the General Survey upon 5 (five)
company that issued by you, had done the exploration and or general survey in the forest
area without the permission of the Minister of Forestry, namely: IUP/Mining license of PT
Trade Powerindo in accordance to Decree No. 36.02.188.45/HK/IV/2008, dated April 9,
2008; IUP/Mining License of PT Investama Resources in accordance to Decree No.
39.02.188.45/HK/IV/2008, dated April 9, 2008; IUP/Mining License of PT Swasembada
Energy in accordance to Decree No. 45.02.188.45/HK/IV/2008, dated April 9, 2008;
IUP/Mining license of PT Swasembada Bara in accordance to Decree No.
46.02.188.45/HK/IV/2008, dated April 9, 2008; PT Jayakhisma Globe Indonesia in
accordance to Decree No. 188.4.45/468/HK/IX/2008 dated September 23, 2008.

2. IUP referred to item 1 above, you have upgraded to the IUP Exploitation (PT Ridlatama
Trade Powerindo, PT Ridlatama Tambang Mineral, PT Investama Resources, and PT
Investmine Nusa Persada) which in this case have applied for forestry license in Ministry
of Forestry. However, based on special identification results carried out by the Inspector
General found out that the exploration and or general survey has been exercised before
having any permission from the Ministry of Forestry, besides there was also information
that these licenses indicated false, in addition to that, the mining areas has overlapped with
other permit areas.

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3. Related to the above, to avoid further legal implications, we herewith advise you, to:

1) stop all exploration or general survey or exploitation activities under IUP of PT

Ridlatama Tambang Mineral, PT Ridlatama Trade Powerindo, PT Investama
Resources, and PT Investmine Nusa Persada who do not have permission of forestry
license from the Minister of Forestry;

2) cancel the licenses of the five Regents decision in regards to IUP Exploration and or
General Survey on behalf of PT Ridlatama Trade Powerindo; PT Investama
Resources; PT Swasembada Energy; PT Swasembada Bara; and PT Jayakhisma Globe
Indonesia for allegedly committing a crime in the forestry sector as stipulated in
Article 50 paragraph (3) letter g jo. Article 78 paragraph (6) in regards to Laws No. 41
of 1999 on Forestry, and complained to law enforcement;

3) investigate and prosecute allegations of falsification of IUP on behalf of PT Ridlatama

Tambang Mineral, PT Ridlatama Trade Powerindo, PT Investama Resources, and PT
Swasembada Bara, PT Swasembada Energy, and if it the allegations of falsification is
proved, it is advisable to report to law enforcement;

4) the applicant required to have forestry license if their working area is in forest area in
accordance with applicable regulations.

For your consideration, please find attached the complete report on Results of the Special
Identification.

Please be advised accordingly, thank you for your attention.

cc:
1. Governor of East Kalimantan Province;
2. The Inspector General of the Department of Forestry;
3. Director General of PHKA.

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