Code Innovation

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Development of KCMI Code


  • Discourse created a reporting code started before 1998
  • The Busang case (Bre-X / 1993-1997), starting at a stock price of less than CAD $ 1.00 peaked at CAD $ 286.50 in May 1996 (The Biggest Mining Scandal of All Time)
  • There is a desire from professionals to have a code of high quality reporting of mineral resources and reserves and some code choices as a reference (South Africa, Canada, Australia), Decided to adopt JORC from Australia because the JORC Code is considered the most comprehensive
  • MoU with AusIMM (July 1998)
  • MoU with MICA (April 2004)
  • The 2011 KCMI Code Convention 2011

Progress of KCMI Code Implementation: 2011

  • Recognition of reporting of mineral and coal reserves by CPI in BEI Regulation no. 1-A.1 (effective December 1, 2014)
  • BEI Cooperation with CPI IAGI-MGEI, effective December 11, 2014, 5 year period, a.l. elements of CPI IAGI-MGEI  in the IDX Working Team who evaluate potential mining issuers
  • Director General of Minerals and Coal Regulation no. 569 / DJB / 2015, effective April 2017 requires the reporting of HE, Resource and Reserve referring to KCMI and SNI Codes (Furthermore Minister Reporting Regulations)
  • CP Implementation Committee of each CPI IAGI-MGEI each have 196 CPI and 191 CPI
  • The KCMI Code socialization program has been conducted since 2012
  • The KCMI Code has been introduced in the CRIRSCO forum and Indonesia has been indicated as a potential member of CRIRSCO
  • The KCMI code has been used by some by some mining companies.

Contents of KCMI Handbook

  • Description of the Competent Person
    • ‘why, who, how’
    • bonds: doing work, professional development, etc
  • Ethics and discipline
    • Ethics, Code of Ethics CPI IAGI-MGEI, Code of Conduct, Sanctions & Rehabilitation
  • KCMI Code: 2011
    • Code, definitions, instructions
    • Table 1: check list of reporting criteria
  • Appendix – attachment
    • (a.l.) Common terms and equation

Systematics Code of KCMI: 2011

  • Introduction, Scope
  • Competence and Responsibility
  • Term of Reporting and Preparation of General Reports
  • Reporting for Exploration Results
  • Reporting for Resource Estimation
  • Reporting for Reserve Estimation
  • Reporting for Resource and Reserves Estimation of Coal
  • Reporting for Exploration Results, Resource and Reserves Estimation of Precious Stone
  • Reporting for Exploration Results, Resource and Reserves Estimation of Industrial Mineral
  • Table 1: ‘Check list’ for Criteria for Assessment and Reporting
  • General Terms and Equations

Main Code-KCMI Principle: 2011

  • Report reader (Investor & Adviser)
    • To understand the report; sufficient information, clear presentation & not confusing (not manipulated) and not misled
  • Transparency
    • The report contains all relevant information that is reasonably and appropriately needed by investors and their professional advisors
    • For appropriate and balanced investment decision-making
  • Competent
    • The work of ‘Competent Person’
    • Relevant relevant experience
    • Responsible and accountable
    • Bound code of ethics and organizational rules, catt. : Competent Person Indonesia (CPI) IAGI-MGEI

Characteristics of KCMI Code: Principles based code

The meaning is a Guideline consisting of principles (Code – Definition – Directive). KCMI Code: 2011 does not regulate the following:

  • Schemes and procedures (detailed steps) used by CPI reporting Estimation Results, as well as in estimation-classification-reporting of Mineral and Coal Resources and Reserves Estimation
  • Systematic of reporting content of Estimated Results, Mineral and Coal Resources and Reserves. CPI self-determines schemes & procedures for reporting of Mineral and Coal Estimation Results, or estimates-classification- reporting of Mineral and Coal Resources and Reserves Estimation, as well as systematic reporting with reference to:
    1. KCMI Code Content and Table 1: Check list of reporting criteria
    2. Best practices


Reporting of Exploration Results – Resource Estimation – Reserves Estimation