ACT OF THE REPUBLIC OF INDONESIA

NUMBER 1 YEAR 1973 (1/1973)

REGARDING
THE BASE OF THE INDONESIAN CONTINENT

DATE: 6 JANUARY 1973 (JAKARTA)

SOURCE: LN 1973/1; TLN NO. 2994

INDEX: THE BASE OF THE SEA CONTINENT

IN THE NAME OF THE LORD ALMIGHTY

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Considering: a. that the Republic of Indonesia has full authority of the natural resources in
the Indonesian continent, as clearly stated in the Government Announcement
Republic of Indonesia date February 17 1969;

b. in relation to the statement, it is necessary to stipulate the Principles that will

regulate the use of the natural resources for the people’s and the country’s
well-being.

In view of: 1. Article5 (1), Article 11, Article 20 and Article 33 (3) 1945 Constitution;

2. The Indonesian Tariff Regulation Stbl. 1873 No. 135 as adjusted and added;

3. Tariff Ordonantie Stbl. 1882 No. 240 as adjusted and added;

4. Regulations Number 4 Prp. Year 1960 (State Gazette Republic of Indonesia Year
1960 Number 22; Additional State Gazette Republic of Indonesia Number 1942);

5. Regulations Number 44 Prp. Year 1960 (State Gazette Republic of Indonesia Year
1960 Number 133; Additional State Gazette Republic of Indonesia Number 2070);

6. Regulations Number 19 Prp. Year 1961 (State Gazette Republic of Indonesia Year
1967 Number 133; Additional State Gazette Republic of Indonesia Number 2318);

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 7. Regulations Number 11 Prp. Year 1967 (State Gazette Republic of Indonesia Year
1967 Number 22; Additional State Gazette Republic of Indonesia Number 2831);

In agreement with the House of Representatives Republic of Indonesia.

DECIDED:

To stipulate: THE REGULATIONS ON THE BASE OF THE INDONESIAN CONTINENT

CHAPTER 1

GENERAL DEFINITIONS

Article 1
In this Regulations, what is defined as:
a. The Base of the Indonesian Continent is the base of the sea and ground under and
outside of the territorial of the Republic of Indonesia as regulated in the Regulations
Number 4 Prp. Year 1960 all the way under 200 meters or more, where there is any
possibility of exploring and exploiting natural resources.
b. Natural Resources is the minerals and other lifeless resources in the base of the sea
and/or in the bottom ground layer along with living organisms in line with sedentary
organisms, which does not move when breeding on top or in the bottom of the sea, or
cannot move unless by clinging on to the bottom of the sea or the ground layer below it.
c. Exploration and exploitation are the exertions in using the natural resources in the
continent base as based in the regulations stipulated in each field.
d. Scientific research is the scientific research on the natural resources in the continent
base.

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 CHAPTER 2

THE STATUS OF THE NATURAL RESOURCES IN THE INDONESIAN CONTINENT

Article 2
Full authorization and exclusive rights for the natural resources in the Base of the Indonesian
Continent and its authorization belonging to the Republic.

Article 3
In accordance with the Indonesian continent, including depressions in the base of the
Indonesian continent, in boundaries with other countries, stipulating the border continent line
with other countries can be reached by talks to reach an agreement.

CHAPTER 3

EXPLORATION, EXPLOITATION AND SCIENTIFIC RESEARCH

Article 4
Exploration and exploitation of natural resources in the base of the Indonesian continent has to
be conducted in accordance with the regulations in each field.

Article 5
Conducting a scientific research of the natural resources in the Base of the Continent is in
accordance with the Government Law.

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 CHAPTER 6

INSTALLATION

Article 6
(1) To conduct an exploration and exploitation in accordance with Article 4 of this
regulation, installations, ships and/or other equipments can be erected, preserved and
used in the Base Continent and/or above it.
(2) To protect the installations, ships and/or other equipments stated in point (1) against
interruption from the third party, the Government can stipulate a forbidden area of no
more than 500 meters, counted and from each point outside the installation, ships
and/or other equipments are surrounded by installations, ships and/or other
equipments enclosed in the Base Continent and/or above it.
(3) Apart from the forbidden area in point (2) of this article the Government can stipulate a
limited area of no more than 1,250 meters, counted from each point outside the
installation, whereas ships from the third parties are not allowed to cast or weigh an
anchor.

Article 7
The terms and conditions about erecting, protecting and using installations and/or equipments
stated in article 6 of this regulation will be further regulated by the Government Law.

Chapter 5
POLLUTION

Article 8
(1) Whoever conducts exploration, exploitation and scientific research on natural resources
in the Base of the Indonesian Continent, is obliged to abide by these rules:
a. Prevent seawater pollution on the Indonesian continent and air above it;
b. Prevent further pollution if polluted.
(2) Other terms in accordance with seawater pollution in the base of the Indonesian
continent and air above it and conditions that abide by it to prevent and act will be
further regulated by the Government Law.

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 CHAPTER 6

THE STATE JURISDICTION

Article 9
(1) For every action and event occurred on the upper or under installations, other
equipments or ships in the base of the continent and/or above it, for the use of
exploration and/or exploitation of natural resources in the base continent or forbidden
areas and border areas from the installations and/or other equipments or ships or the
mentioned above, abide the laws and regulations of the Indonesian regulations.
(2) Installations and equipments on the base of the Indonesian continent that are used to
explore and exploit natural resources is declared in the Indonesian

CHAPTER 7

PROTECTION AGAINST OTHER INTENTIONS

Article 10
(1) In conducting exploration and exploitation of natural resources in the base continent,
intentions have to be abided by and protected:
a. National defence and security;
b. Relation;
c. Telecommunication and electricity transmission under the sea;
d. Fish;
e. Oceanography research and other scientific research;
f. Nature preservation.

(2) If disputes occur between the stated intentions in point (1) concerning the use of natural
resources in the base of the Indonesian continent, it will be finalized in accordance with
the terms of Regulations.
(3) If opposing occurrences occur with the regulation in point (1), the Government can
recess the production or can remove other productions in relevance.

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 CHAPTER 8

TERMS OF PUNISHMENT

Article 11

In this term unless otherwise is not regulated specifically by other Regulations, a confinement
penalty of up to 6 years and/or a fine of up to Rp. 1,000,000,- and whoever refuses in doing so:

a. the terms in article 4 of this regulation;

b. the terms in The Government Law stipulated in accordance with Article 5 and Article 8 in
this Regulation.

Article 12
Conducting a crime in Article 11 of this Regulation is an offence.

CHAPTER 9

CLOSING TERMS

Article 13
Points that are not stated in this Regulation will be further controlled by the Government Law.

Article 14

This Regulation will be valid as dated;

In order for every citizen to be aware, governing the Regulations and placed in the State Gazette
of the Republic of Indonesia.

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 Legitimated in Jakarta
On date 6 January 1973.
PRESIDENT OF THE REPUBLIC OF INDONESIA

JEND. TNI SOEHARTO

Regulated in Jakarta
On date 6 January 1973
SECRETARY OF STATE
REPUBLIC OF INDONESIA

MAYOR JENDERAL TNI. SOEDARMONO, SH.

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 EXPLANATION ABOUT THE REPUBLIC OF INDONESIA REGULATIONS NUMBER 1
YEAR 1973 ABOUT THE BASE OF THE INDONESIAN CONTINENT

I. GENERAL
For a while there has been an effort on finding new natural resources including
exploration on oil and natural gas in the continent.
This is due to the importance of the role of underground continent as a natural
resource and the advancing technology in obtaining them for everyday needs.
To protect the Indonesian people in the continent that are in border with other
countries, the Indonesian Government on February 17 1969 issued an Announcement
about The Base of the Continent that states the basic principles of the Government’s
assessment on the Indonesian Continent.
Apart from the announcement on the basic principles of the assessment mentioned
above which is aimed for foreigners, it necessary to state the announcement on written
regulation, in order to legitimise the principles in conducting the basic principles of the
resources that can be attained form the continent.
Apart from the general needs like the territory of the Country on the Continent, this
Regulation also states the basic terms for exploration and exploitation and scientific
research on the natural resources in the continent and the problems concerning them.

II. ELABORATION ON ARTICLE BY ARTICLE

Article 1

a. The term for the base of the continent in this Regulation is adjusted with the term
used in the Government Announcement of the Republic of Indonesia on February 17
1969.
b. The term or natural resources in the Regulation includes resources from
underground, flora resources and fauna resources.
According to Article 1 point c Article 4 of this Regulation, regulations about
exploration and exploitation is stretched to the whole Indonesian Continent.

Article 2

This article clearly states the Country’s rights over the beaches on the continent and as a
legitimacy of the Government Assessment about the Indonesian continent stated in the
Government Announcement of the Republic of Indonesia dated February 17 1969.

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 Article 3

This article states clearly on the borderline of the continent among neighbouring countries.

Article 4

Very clear.

Article 5

Scientific research on natural resources on the continent includes research on minerals,

biology (shrimp, oyster, etc.) and ecology (sea corals).

Article 6
1. This point states clearly the right for the Country to develop, preserve and use the
installations, ships and/or other equipments in the continent and/or above it.
2. Restricted area in this point defines as areas where ships from the third party are
restricted to throw or weigh in an anchor (safety zone or restricted navigation area).
What is defined as limited area in this point is the area where ships from the third
party may pass but is prohibited to weigh in an anchor.

Article 7
Very clear.

Article 8
1. Pollution is prohibited in any way in the sea on the continent and the air above it.
2. Very clear.

Article 9
This article gives legitimacy to the Country for installations, ships and/or other
equipments used in the Indonesian continent and/or above it. The Jurisdiction is valid
and righteous by the International Law.

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 Article 10
All activity on exploration and exploitation on the Indonesian continent, which objectifies
obtaining natural resources, have to consider the defence and security sides to them.
Article 11
Stating terms of punishments to those who prohibit the regulations on exploration,
exploitation, scientific research and seawater pollution on the Indonesian continent and
the air above will have to face a penalty concerning pollution due to installations, ships or
other equipments.

Article 12
Very clear

Article 13 and 14
The closing is quite clear.

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