Late in October of 2014 the Indonesia Stock Exchange (IDX)
issued new listing rules applicable to certain mining
companies. Under this rule, a mining company in possession of
an Mining Business Licence – Production Operation
(Izin Usaha Pertambangan Operasi Produksi) or Special
Mining Business Licence – Production Operation
(Izin Usaha Pertambangan Khusus Operasi Produksi) may
apply for registration with the stock exchange. This includes
companies that are yet to start a production activity.
The pre-production company must have a 'proven' or
'probable' reserve as evidenced by a report from a competent
party. Additionally, in obtaining approval for the listing, an
independent valuation report is required. The report must state
that the pre-production company will have obtained operational
profit and net profit from its core business activities within
four fiscal years of the listing date.
A holding company of a pre-production mining company may
also file for listing with the IDX, provided that the
subsidiary mining company possesses the proper Mining Business
Licence and other required mining licences, and has proven or
probable reserve as evidenced by the appropriate reports.
To be listed in the IDX main board, the applicant company is
required to provide an audited financial statement showing a
net tangible asset of at least Rp100 billion ($8.3 million). To
be listed in the development board, the applicant company must
show a net tangible asset of at least Rp5 billion.
There is also a requirement that at least one of the
company's directors must have a technical background and must
have had a managerial position at a mining company for at least
five of the past seven years.
The company must also have submitted its work plan and
operational budget to the relevant governmental agencies prior
This rule is valid from November a 2014.
Oene Marseille and Emir Nurmansyah