Financial statements for the last three years have been audited by a Public Accountant.
When there is a divestment offer from a foreign investment party, the Government of Indonesia through the Minister may form a divestment team that has the task of evaluating, and reporting the results of the evaluation of the divestment share price to the Minister and appointing an independent appraiser who has a permit from the Minister of Finance based on consideration of the credibility and reputation of the prospective appraiser to be appointed as well as the efficiency and effectiveness of state finances in accordance with the provisions of laws and regulations.
The membership of the divestment team shall at least consist of representatives from the Ministry of Energy and Mineral Resources, the Ministry of Finance, the Ministry of State-Owned Enterprises, the Investment Coordinating Board, and the Government of Indonesia in evaluating and negotiating the price of the divested shares offered, given a period of no later than ninety days from the receipt of the share divestment offer.
Submission of the offer for the first time to the central government is not given a time limit. Then, if there is no answer of interest from the Central Government or a letter of response that says not interested from the Indonesian Central Government, the next submission to the Regional Government is given a time limit of seven calendar days after or thirty calendar days after the time limit for evaluating the share price expires or 120 days since the submission of the first offer is received by the Government of Indonesia. In the second submission after the Central Government is not interested in buying the divestment share price or rejects it, the divestment offer is submitted to the Regional Government. A time limit of seven days is given to submit a third divestment offer to the State-Owned Enterprises and Regional-Owned Enterprises if within thirty days there is no response or there is a rejection answer. Moreover, the third submission to State-Owned Enterprises and Regional-Owned Enterprises within a period of thirty days with no response or no response to rejection will be given a time limit of seven days to submit the fourth divestment offer, namely to the Private Business Entity National through auction.
If the fourth submission to the National Private Business Entity is rejected or there is no response at the same time, the share offering can be made on the Indonesian stock exchange. If the submission of an offer for the divestment share price to the Indonesian party consisting of the Central Government, Regional Government, State-Owned Enterprises, Regional-Owned Enterprises, and National Private Bodies through auction is accepted, the Indonesian party is given a time limit of no later than twelve months after the date of inclusion of interest to settle its obligations related to payments.
Calculation of the Divestment Share Price, Holders of Mining Business Permits, Special Mining Business Permits, Contracts of Work and Coal Mining Concession Work Agreements, calculate the divestment share price using two types of methods as follows:
Discounted cash flow for economic benefits based on free cash flow during the period from the time of execution of the share divestment to the earlier of the expiration date of the Mining Business Permit, Special Mining Business Permit, Contract of Work and Coal Mining Concession Work Agreement, including the extension period or the age of the reserve in accordance with the feasibility study document that has been approved;
Comparison of market data (market benchmarking), in terms of the provisions of the Contract of Work and Coal Mining Concession Work Agreement, determining the method of calculating the price of divested shares, calculating the price of divested shares by holders of the Contract of Work and Coal Mining Concession Work Agreement, can be done using the method in accordance with the provisions contained in the Contract of Work and Coal Mining Concession Work Agreement, as long as it is more profitable for the Government of Indonesia.
The calculation of the divestment share price using the discounted cash flow method is carried out by considering:
The period from the implementation of the share divestment to the sooner between the end of the validity period of the Mining Business Permit, Special Mining Business Permit, Contract of Work and Coal Mining Concession Work Agreement, including the extension period or the age of the reserve following the approved feasibility study document;
Reserves that have been verified by a competent person;
