About KCMI

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Komite Cadangan Mineral Indonesia

Who We Are

Komite Cadangan Mineral Indonesia (KCMI) is a committee that is responsible for the development, updating and socialization of the KCMI Code. KCMI members consist of representatives from Indonesian Association of Geologists (IAGI), Indonesian Economic Geology Community (MGEI), Ministry of Energy and Mineral Resources of the Republic of Indonesia (Directorate General Mineral and Coal and Geological Agency Indonesia Bureau of Geology) and Indonesia Stock Exchange.

The Need for Accurate and Credible Reports

Initial exploration activities until infrastructure development, production expansion and mine acquisitions need sources of funds. The basis for external investors or internal shareholders of mining companies to provide funds is the status of resources and reserves that reflect investors’ expectations and confidence in the possible return on investment and asset growth. For investors to make balanced and balanced decisions in the context of provision of funds or investment, the status of resources and reserves must be based on accurate and credible reporting.

The birth of the Guidelines was basically triggered by a scandal of resource reporting and reserve maneuvers that caused tremendous losses for investors. The birth of the JORC Code (Australia) prevailing since the late 60s, triggered by the Posseidon and Cappendance Scandal CIM / NI 43-101 (Canada), which was in effect since the late 90s, was sparked by the Busang Scandal.

In September 2011 the Joint Committee of KCMI whose members are PERHAPI and IAGI, through the National Convention gave birth to the Indonesian Mineral Reserve Committee Code (KCMI): 2011. It is expected that the Code adopted from the JORC Code 2004 can serve as a public reporting guide for exploration, resource and mineral reserves in Indonesia; and able to protect the interests of investors and stakeholders.

Since its introduction at the end of 2011, the recognition and acceptance of the KCMI Code: 2011 is widespread and encouraging, as can be seen from:

The Indonesia Stock Exchange (IDX) in Regulation I-A.1, effective from 1 November 2014, acknowledges the statement of mineral reserves signed by Competent Person Indonesia (CPI) working under the KCMI Code: 2011; where the statement of reserves is used as the basis for mining companies that will list their shares on the Stock Exchange.
Director General of Mineral and Coal in Decree No. 569DJB / 2015 requires that since April 2017, the reporting of exploration results, mineral resources and mineral reserves shall refer to the KCMI Code and be signed by the CPI.
Several mineral and coal mining companies have used the KCMI Code: 2011 as a guide for reporting resources and reserves.

The principle of Materiality Competency Transparency

Reporting referring to KCMI Code: 2011 and other Guides that have been successfully implemented in that world are based on the principle of Transparency – Materiality – Competence Platform, which can be explained as follows:

Transparancy

Transparency Principle Requires that in order to understand the report, the reader of the Public Report is treated with sufficient information with a clear presentation and does not provide a confusing understanding, and the report reader is not misled

Materiality

Materiality Principle requires the Public Report contains all relevant information that is reasonably required by the investor and his professional advisor; and the information is expected to be in the report; in the context of making appropriate and balanced decisions related to the reported Exploration Results, Mineral Resources or Ore Reserves.

Competence

Competent Principle requires that the preparation of a Public Report based on the work that can be accounted for by someone who has the right expertise and experience, and is bound by the code of ethics and organizational rules that overshadow it.