Explosives are extremely dangerous and sensitive, thus for the purpose of safety and security, there needs to be specific monitoring and control. Commercial explosives are various chemical products that can be used as explosives for mining work, civil work or in certain production for commercial purposes.

PT Dahana (Persero) is appointed based on The Presidential Decree 5 of 1988 to serve the needs of explosives in accordance with the laws and regulations. PT Dahana (Persero) has more than 50 years of experience in the explosives industry and has the necessary infrastructure, facilities and competencies in providing services related to explosives.

Based on The Presidential Decree No. 125/1999, the procurement and usage of explosives is detailed in the Minister of Defense Regulation No. 36/2012 regarding Guidelines on regulation, supervision and development of explosives industry and Chief of National Police Regulation No. 2/2008 concerning supervision, control and safety of commercial explosives.

PURCHASE AND USAGE PERMIT (P2 PERMIT)

Purchase and Usage Permit (P2 Permit)Purchase of explosives can only be fulfilled if customer owns Purchase and Usage Permit (P2 Permit) issued by the National Police Chief (Kapolri) which is valid for 6 (six) months and only given to customers who already own Explosives Ownership, Authorization and Storage Permit (P3 Permit) which is also issued by the National Police Chief.

Before P2 Permit is issued by the Chief of Indonesian Police (Kapolri) a recommendation from the Chief of Regional Police (Kapolda) is required. For projects/ companies under the Directorate General of General Mining or the Directorate General of Oil & Gas or the Directorate General of New Energy, Renewable and Energy Conservation, in addition to the recommendations of the local police chief, recommendation from one of the above Directorates is also required. In addition, to get a recommendation from Kapolda, recommendation from the Police of the Resort (Polres) is also required.

OWNERSHIP, AUTHORIZATION AND STORAGE PERMIT (P3 PERMIT)

P3 Permit is an Explosives Ownership, Authorization and Storage Permit. P3 Permit is issued by the Indonesian Police Chief and is valid for 5 (five) years in accordance to the validity of the magazine permit issued by The Directorate General of Mineral & Coal, The Directorate General of New Energy, Renewable and Conservation of Energy.

Before P2 Permit or P3 Permit is issued by the Chief of Indonesian Police, a recommendation from The Chief of regional Police (Kapolda) is required. For projects/companies under the Directorate General of General Mining or Directorate General of Oil and Gas, aside from recommendation from the Chief of Provisional Police, a recommendation from either of the abovementioned Directorate is also required. Moreover, in order to obtain recommendation from the Chief of regional Police, a recommendation from the Regional Police (Polres) is also required.

WAREHOUSE PERMIT

Warehouse Permit is issued by The Directorate General of Oil and Gas, or Directorate General of Mineral and Coal, or Directorate General of New Energy, Renewable, and Energy Conservation while the warehouse permit for construction project is issued by the Chief of Police of The Republic of Indonesia.

Before the warehouse permit issued, a recommendation from the Regional Police Chief (Kapolda) is required. In addition, to get recommendation from Polda, recommendation from Resort Police (Polres) also required.

PURCHASE

1. Customer submits written inquiry by stating the type and quantity of explosives along with the explanation on the purpose of usage.

2. Based on the material requisition, Dahana will submit quotation to the customer and if desired, Dahana may assist in preparing and completing the necessary permits.

3. After purchase agreement is reached between Dahana and the customer, the purchase requirements will be stated in the purchase order/PO or service order/SO.

4. Based on the order, Dahana will determine the procurement plan, whether it will be fulfilled from available stock, produced or imported.

5. Goods will be delivered after permit and payment requirements are met in accordance to the delivery schedule