LAW NO. 21 OF 2001 DATED NOVEMBER 21, 2001 ON SPECIAL AUTONOMY FOR PAPUA PROVINCE BY THE MERCY OF GOD ALMIGHTY

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1 LAW NO. 21 OF 2001 DATED NOVEMBER 21, 2001 ON SPECIAL AUTONOMY FOR PAPUA PROVINCE BY THE MERCY OF GOD ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA, Considering : a. that the ideals and goal of the unitary Republic of Indonesia are to build a just, prosperous and peaceful Indonesian community based on the state ideology Pancasila and the 1945 constitution; b. that the Papua community as human beings of God's creation and part of civilized mankind upholds the supremacy of human rights, religious norms, democracy, law and cultural values prevailing in the customary law abiding community, and deserve to enjoy the fruits of development in a fair manner; c. that the administrative system of the unitary Republic of Indonesia by virtue of the 1945 Constitution recognizes and respects units of provincial government which enjoys special privileges as laid down in the law; d. that the national integrity under the framework of the unitary Republic of Indonesia must constantly be maintained by appreciating the equality and plurality of the socio-cultural life of the Papuan community through the granting of special autonomous status; e. that the original inhabitant of Papua belong to the family of Melanesia race that is part of ethnic groups in Indonesia who have their own cultures, histories, customs and languages; f. that the running of government and the implementation of development in Papua Province so far have not fully fulfilled a sense of justice, enable the attainment of people's welfare, supported the supremacy of law, and shown respect for human rights in Papua Province, particularly those of the Papuan community; g. that the natural resources of Papua Province have not been optimally managed and utilized to promote the living standard of original inhabitants, thereby leading to disparities between Papua Provinces and other provinces due to negligence of the basic rights of the original inhabitants of Papua; h. that to reduce the disparities between Papua Province and other provinces, promote the living standard of people in Papua Province, and give opportunities to the original inhabitants of Papua, there must be special policies under the framework of the unitary Republic of Indonesia. i. that the enforcement of the said special policies is based on the basic values covering the protection and appreciation of ethics and morals, basic rights of original inhabitants, human rights, supremacy of law, democracy, and pluralism, as well as equality of rank, rights and obligation as citizens; j. that there has been new awareness on the part of the Papuan community to struggle for the recognition of their basic rights in a peaceful and constitutional way and demand for the settlement of problems related to the violation and protection of human rights of the original inhabitants of Papua; k. that developments in the situation and condition of Irian Jaya, particularly those related to public aspirations demand the revival of Papua as laid down in Decision of the Irian Jaya Provincial Legislative Assembly (DPRD) No. 7/DPRD/2000 dated August 16, 2000 on the revival of Papua; l. that based on the considerations in letters a, b, c, d, e, f, g, h, i, j and k, it is deemed necessary to grant special autonomy to Papua Province by enacting a law; In view of : 1. The 1945 Constitution, Article 5 paragraph (1), Article 18, Article 18A, Article 18B, Article 20 paragraph (1) and paragraph (5), Article 21 paragraph (1), Article 26, and Article 28;

2 2. Resolution of the People's Consultative Assembly No. XV/MPR/1998 on the Implementation of regional autonomy, the management, distribution and utilization of national resources in a fair manner, and the financial sharing between the Central and Provincial Governments under the framework of the unitary Republic of Indonesia; 3. Resolution of the People's Consultative Assembly No. IV/MPR/1999 on the Broad Outlines of State Policies for the period; 4. Resolution of the People's Consultative Assembly No. III/MPR/2000 on legal sources and sequential order of legislation; 5. Resolution of the People's Consultative Assembly No. IV/MPR/2000 on recommendations for policies in the implementation of regional autonomy; 6. Resolution of the People's Consultative Assembly No. V/MPR/2000 on the consolidation of national cohesion and unity; 7. Resolution of the People's Consultative Assembly No. VIII/MPR/2000 on the annual reports of high state institutes in the annual meeting of the People's Consultative Assembly in 2000; 8. Law No. 1 of 1962 on the establishment of Irian Jaya Province; 9. Law No. 12 of 1969 on the establishment of the Autonomous Province of West Irian and Autonomous Regencies in West Irian Province (Statute Book of 1969 No. 47, Supplement to Statute Book No. 2907); 10. Law No. 22 of 1999 on regional government (Statute Book of 1999 No. 60, Supplement to Statute Book No. 3839); 11. Law No. 25 of 1999 on the financial sharing between the central and regional governments (Statute Book of 1999 No. 72, Supplement to Statute Book No. 3848); 12. Law No. 37 of 1999 on foreign relations (Statute Book of 1999 No. 156, Supplement to Statute Book No. 3882); 13. Law No. 39 of 1999 on human rights (Statute Book of 1999 No. 165, Supplement to Statute Book No. 3886); 14. Law No. 24 of 2000 on international treaty (Statute Book of 2000 No. 185, Supplement to Statute Book No. 4012); 15. Law No. 26 of 2000 on human rights tribunal (Statute Book of 2000 No. 208, Supplement to Statute Book No. 4026); To stipulate : With the joint approval of THE HOUSE OF REPRESENTATIVE AND THE PRESIDENT OF THE REPUBLIC OF INDONESIA DECIDES : LAW ON SPECIAL AUTONOMY FOR PAPUA PROVINCE CHAPTER I GENERAL PROVISIONS Referred to in this law as : Article 1 a. Papua province shall be Irian Jaya Province granted special autonomy in the framework of the unitary Republic of Indonesia; b. Special autonomy shall be the special autonomy recognized by and granted to Papua Province to administer and manage the interests of the local community according to its own initiatives with due observance of the aspirations and basic rights of the Papua community;

3 c. Central Government, hereinafter referred to as the Government, shall be the apparatus of the unitary Republic of Indonesia comprising the President and Ministers; d. Provincial Government of Papua shall be the Governor along with other apparatuses as the Executive Body of Papua Province; e. Governor of Papua Province, hereinafter referred to as the Governor, shall be the Head of Region and the Head of Government that is fully responsible for the running of government in Papua Province and serves as the representative of the Government in Papua Province; f. The Legislative Assembly of Papua, hereinafter referred to as DPRP, shall be the Regional Legislative Assembly of Papua Province as the legislative body of Papua Province; g. People's Assembly of Papua, hereinafter referred to as MRP, shall be the cultural representation of the original inhabitants of Papua that has certain authority to protect the rights of the original inhabitants of Papua by respecting customs and culture, empowering women, and forging harmonious relations among different religious adherents as laid down in this law; h. Regional Symbol shall be the emblem of grandeur and the cultural symbol of the glorious identity of the Papuan people in the form of regional flag and anthem not treated as the symbol of sovereignty; i. Special Regional Regulation shall be the Regional Regulation of Papua Province needed to implement certain articles of this Law; j. Regional Regulation shall be the Regional Regulation of Papua Province needed to implement the authority as laid down in the legislation; k. District shall be the working territory of District Head as the regional apparatus of Regency/Municipality; l. Village or the like shall be the unit of legal community that has authority to administer and manage the interests of the local people based on the history and customs of the local community as recognized in the national administrative system and found in a district/municipality; m. Village Consultative Body or the like shall be a group of people that are united to form an organization consisting of various elements in the village who are appointed and recognized by the local people to give suggestions and considerations to the village administration; n. Human rights shall be a set of inherent rights in the essence and existence of human being as the creation of God Almighty and constitute a gift from God Almighty that must be respected, upheld, and protected by the state, law, government and anybody for the sake of human esteem and dignity; o. Customs shall be the habit accepted, obeyed, institutionalized, and maintained by the local customary community in a hereditary manner; p. Customary community shall be the original inhabitants of Papua that live in areas and are bound and subject to certain customs with a high sense of solidarity among members; q. Customary law shall be verbal rules or norms that prevail in the customary community to govern, bind and impose sanction on its members; r. Customary law community shall be the original community of Papua that have from birth been lived in a certain area, have been bound and subject to a certain customary law with a high sense of solidarity among its members; s. Communal rights shall be the rights of association owned by a certain customary law community to a certain area that constitutes the environment of its members, covering the rights to use land, forest and water and its contents in accordance with legislation; t. The original people of Papua shall be those belonging to the family of Melanesia race consisting of original tribes in Papua Province and/or people accepted and recognized as the original people of Papua by the Papuan customary community; u. The population of Papua Province, hereinafter referred to as population, shall be all people, who according to the existing rules, are registered and live in Papua Province. CHAPTER II EMBLEMS Article 2

4 (1) Papua Province as part of the unitary Republic of Indonesia shall use the Red and White as the State Flag and Indonesia Raya as the National Anthem. (2) Papua Province may have its regional symbol as the emblem of grandeur and the cultural symbol of the glorious identity of Papuan people in the form of regional flag and anthem not treated as the symbol of sovereignty. (3) Further provisions on the regional symbol as referred to in paragraph (2) shall be laid down in the Special regional regulation with due observance of the law. CHAPTER III THE DIVISION OF REGION Article 3 (1) Papua Province shall consist of regencies and municipalities each of which functions as an autonomous region. (2) Each of the regencies and municipalities shall comprise a number of districts. (3) Each of the districts shall comprise a number of villages or the like. (4) The formation, expansion, dissolution and/or merger of regencies/municipalities shall be laid down in the law based on a proposal from Papua Province. (5) The formation, expansion, dissolution and/or merger of districts or villages or the like shall be laid down in the regional regulation of regency/municipality. (6) In Papua Province an area can be designed for special purposes laid down in the law based on a proposal from Papua Province. CHAPTER IV THE AUTHORITY OF REGION Article 4 (1) The authority of Papua Province shall cover all administrative sectors, with the exception of foreign policy, defense, security, monetary and fiscal policy, religion, justice and certain authority in other sectors laid down in the law. (2) In addition to the authority as referred to in paragraph (1), Papua Province shall be given special authority based on this law in implementing special autonomy. (3) The realization of the authority as referred to in paragraph (1) and paragraph (2) shall be further laid down in a special regional regulation and regional regulation. (4) The authority of regency and municipality shall cover the authority as laid down in this law. (5) In addition to the authority as referred to in paragraph (4), regencies and municipalities shall have authority based on this law which will be laid down in a special regional regulation and regional regulation. (6) Any international accord made by the Government with regard to Papua Province shall be done after consulting the Governor and shall agree with the law. (7) Papua Province can establish mutually beneficial cooperation with an overseas institute or body under a joint agreement in accordance with the law. (8) The Governor shall coordinate with the Government in making a policy on defense spatial layout in Papua Province. (9) The procedures for consulting the Governor as referred to in paragraph (6) shall be laid down in a special regional regulation. CHAPTER V MODEL AND STRUCTURE OF ADMINISTRATION Part One

5 General Article 5 (1) The Regional Government of Papua Province shall consist of DPRP as a legislative body and Provincial Government as an executive body. (2) In implementing regional autonomy in Papua Province, an MRP constituting the cultural representation of the original inhabitants of Papua and having certain authority in protecting the rights of the original inhabitants of Papua shall be formed through respect for customs and culture, empowerment of women, and promotion of harmonious life among adherents of different religious faiths. (3) The seat of MRP and DPRP shall be in the provincial capital. (4) The Provincial Government shall consists of the Governor and other apparatuses of the Provinc ial Government. (5) In Regencies/Municipalities Regencial/Municipal DPRD and Regencial/Municipal Government shall be formed as a legislative body and an executive body respectively. (6) The Regencial/Municipal Government shall consists of Regent/Mayor and other apparatuses of the Regencial/Municipal Government (7) In villages a Village Consultative Body and Village Government or the like can be formed. Part Two Legislative Body Article 6 (1) The legislative power of Papua Province shall be implemented by DPRP. (2) DPRP shall consist of members elected and appointed on the basis of the law. (3) The election, appointment and induction of DPRP members shall be done on the basis of the law. (4) The number of DPRP members shall be 1¼ (one and a quarter) times the number of DPRP members of Papua Province as laid down in the law. (5) The position, structure, task, authority, rights, responsibilities leaders and instrument of DPRP shall be stipulated within the framework of the law. (6) The financial position of DPRP shall be stipulated in the law. (1) DPRP shall be assigned and authorized to : Article 7 a b c d e f g elect a Governor and a Vice Governor;. propose the appointment of the elect Governor and Vice Governor to the President of the Republic of Indonesia; propose the dismissal of a Governor and/or Vice Governor to the President of the Republic of Indonesia; draft and endorse policies on the running of regional government, the implementation of regional development programs and the yardstick of its achievement in association with the Governor. deliberate and endorse the Regional Budget in association with the Governor; deliberate draft special regional regulations and regional regulations along with the Governor. endorse special regional regulations and regional regulations.

6 h i draw up and endorse the basic pattern of development in Papua Province in association with the Governor with due observance of the national development program and peculiarity of Papua Province. give views and considerations to the Regional Government of Papua Province on planned international accords related to the interests of Papua Province. j supervise : 1) the implementation of special regional regulations, regional regulations, gubernatorial decisions, and other policies of the Regional Government; 2) the management of administrative affairs that become the authority of Papua Province; 3) the realization of the Regional Budget 4) the realization of international cooperation in Papua Province. k l consider and channel aspirations, receive complaints and protests from the people of Papua Province; and. select the delegates of Papua Province to sit in the People's Consultative Assembly of the Republic of Indonesia. (2) The realization of task and authority as referred to in paragraph (1) shall be laid down in the Procedural Rules of DPRP in accordance with the law. Article 8 (1) DPRP shall have the rights to : a. ask for the accountability of the Governor; b. ask for information from the Provincial, Regencial/Municipal Government and parties needed in accordance with the law; c. conduct an investigation; d. amend draft special regional regulations and draft regional regulations; e. present a statement of views; f. present draft special regional regulations and draft regional regulations; g. draft, endorse and amend the calculation of the Regional Budget; h. draft, endorse and amend the calculation of the DPRP Budget as part of the Regional Budget; and i. endorse the Procedural Rules of DPRP. (2) The exercise of rights as referred to in paragraph (1) shall be laid down in the Procedural Rules of DPRP in accordance with the law. (1) Any DPRP member shall have : a. the right to ask questions; b. the right to ask up with proposals and views; c. immunity right; d. protocol right; and e. financial/administrative right. Article 9

7 (2) The exercise of rights as referred to in paragraph (1) shall be laid down in the Procedural Rules of DPRP in accordance with the law. Article 10 (1) DPRP shall be obliged to : a. defend and keep the unitary Republic of Indonesia intact; b. put the state ideology Pancasila and the 1945 Constitution into practice and comply with the law; c. encourage democracy in the running of the Regional Government; d. promote the people's welfare based on economic democracy; and e. consider and channel aspirations, receive complaints and protests from the people, and help seek their solution. (2) The implementation of obligation as referred to in paragraph (1) shall be laid down in the Procedural Rules of DPRP in accordance with the law. Part Three The Executive Body Article 11 (1) The Government of Papua Province shall be led by a Head of Region as an Executive Head called Governor. (2) The Governor shall be assisted by a Deputy Head of Region called Vice Governor. (3) The procedures for electing a Governor and a Vice Governor shall be laid down in a special regional regulation in accordance with the law. Article 12 The Governor and Vice Governor of Papua Province shall be the citizen of the Republic of Indonesia with qualifications : a. a native of Papua; b. believe in God Almighty and religiously devout; c. at least university graduate or its equivalent; d. aged at least 30; e. physically and mentally healthy; f. loyal to the unitary Republic of Indonesia and devote oneself to the people of Papua Province; g. have never been jailed for criminal offence, except being jailed for political reasons; and h. do not have the right to vote revoked by virtue of a court verdict with fixed legal strength, except being jailed for political reasons. Article 13 The requirements and procedures for making preparations for gubernatorial and vice gubernatorial election, and for electing, appointing and inducting a Governor and Vice Governor shall be further laid down in the law. Article 14 The Governor shall be obliged to : a. stick to the state ideology Pancasila and the 1945 Constitution; b. defend and keep the unitary Republic of Indonesia intact and encourage democracy; c. respect the sovereignty of the people; d. uphold and enforce all regulations and laws; e. promote the living standard and welfare of the people;

8 f. develop the mental capabilities of the people of Papua; g. maintain law and order; h. present draft special regional regulations and endorse them into special regional regulations along with DPRP after securing consideration and approval from MRP; i. present draft regional regulations and endorse them into regional regulations along with DPRP; and j. run the government an implement development programs in accordance with the Basic Pattern of Development in Papua Province in a clean, honest and responsible manner. Article 15 (1) The Governor as the representative of the Government shall be assigned and authorized to : a. coordinate, develop, supervise and facilitate cooperation and settle disputes over the running of government between the Province and Regency/Municipality and among Regencies/Municipalities; b. ask periodic reports from Regents/Mayors on the running of government in Regencies/Municipalities; c. monitor and coordinate the process of electing, appointing, and dismissing Regents/Vice Regents and Mayors/Vice Mayors and evaluate accountability reports of Regents/Mayors; d. induct Regents/Vice Regents and Mayors/Vice Mayors in the name of the President; e. socialize national policies and facilitate law enforcement in Papua Province; f. supervise the implementation of personnel administration and the development of personnel career in Papua Province; g. forge harmonious relations between the Government and the Regional Governments and among Regional Governments in an effort to keep the unitary Republic of Indonesia intact; and h. give considerations on the formation, dissolution, merge and expansion of regions. (2) The realization of the task and authority of the Governor as referred to in paragraph (1) shall be laid down in the law. Article 16 The Vice Governor shall be assigned to : a. assists the Governor in performing his obligations; b. help coordinate the activities of government agencies in Papua Province; c. carry out other tasks given by the Governor. Article 17 (1) The tenure of the Governor and Vice Governor shall be 5 (five) years and they can be re-elected for another term of office. (2) In the event that the Governor is permanently handicapped, the Vice Governor shall take up the post of the Governor until the term of office as a governor is expired. (3) In the event that the Vice Governor is permanently handicapped, the post of the Vice Governor shall be left vacant until the term of office as a vice governor is expired. (4) In the event that both the Governor and Vice Governor are permanently handicapped, DPRP shall appoint a qualified government official of the province to carry out the tasks of the Governor until a new Governor is elected. (5) As long as the appointment as referred to in paragraph (1) has not materialized, the Regional Secretary shall carry out the tasks of the Governor for being. (6) In the event that both the Governor and Vice Governor are permanently handicapped as referred to in paragraph (4), DPRP shall elect a Governor and Vice Governor in 3 (three) months time at the latest Article 18

9 (1) In performing obligations in the capacity as the Head of Region and the Head of Provincial Government, the Governor shall be responsible to DPRP. (2) The procedures for realizing the responsibility as referred to in paragraph (1) shall be laid down in the Procedural Rules of DPRP in accordance with the law. (3) As the representative of the Government, the Governor shall be responsible to the President. (4) The procedures for realizing the responsibility of the Governor as referred to in paragraph (3) shall be laid down in a Presidential Decree. (5) The Governor shall coordinate and supervise the realization of the authority of the Government in Papua Province as referred to in Article 4 paragraph (1). (6) The Governor, along with the Government apparatuses assigned in the region or Provincial apparatuses, shall realize the authority as referred to in Article 4 paragraph (2). (7) The procedures for realizing the authority as referred to in paragraph (6) shall be laid down in a Government Regulation. Part Four M R P Article 19 (1). MRP shall be made up of the original people of Papua consisting of customary representatives, religious representatives and women's representatives each of which represents one-third of the total members of MRP. (2). The tenure of MRP membership shall be 5 (five) years. (3). The membership of MRP and the number of MRP members as referred to in paragraph (1) shall be laid down in a Special Regional Regulation. (4). The financial position of MRP shall be laid down in a Government Regulation. (1). MRP shall be assigned and authorized to : Article 20 a. give considerations on and approval to nominees for the post of Governor and Vice Governor proposed by DPRP; b. give considerations on and approval to nominees proposed by DPRP for members of the People's Consultative Assembly of the Republic of Indonesia to represent Papua Province; c. give considerations on and approval to draft special regional regulations proposed by DPRP along with the Governor; d. give suggestions and considerations on and approval to draft cooperation agreements made by the Government or the Provincial Government and third parties to be enforced in Papua Province, particularly those related to the protection of the rights of the original people of Papua; e. consider and channel aspirations and protests from the customary community, religious adherents, women and the general public, particularly those regarding the rights of the original people of Papua, and facilitate efforts to seek their solution; and f. give considerations to DPRP, the Governor, Regencial/Municipal DPRP and Regents/Mayors on matters related to the protection of the rights of the original people of Papua. (2). The realization of task and authority as referred to in paragraph (1) shall be laid down in a Special Regional Regulation. Article 21

10 (1). MRP shall have the rights to : a. ask information from the Provincial Government and Regencial/Municipal Governments on matters related to the protection of the rights of the original people of Papua; b. as for a review of Special Region Regulations and Gubernatorial Decisions considered as contradicting the protection of the rights of the original people of Papua; c. propose to DPRP the draft budget of MRP as an integral part of the Regional Budget of Papua Province; and d. endorse the Procedural Rules of MRP. (2). The realization of the rights as referred to in paragraph (1) shall be laid down in a Special Regional Regulation with due observance of the Government Regulation. (1). Any MRP member shall have : a. the right to ask questions; b. the right to convey proposals and views; c. immunity rights; d. protocol right; and e. financial/administrative right. Article 22 (2) The exercise of the rights as referred to in paragraph (1) shall be laid down in the Procedural Rules of MRP with due observance of the Government Regulation. Article 23 (1) MPR shall be obliged to : a. defend and keep the unitary Republic of Indonesia intact and devote itself to the people of Papua Province; b. put the state ideology Pancasila and the 1945 Constitution into practice and comply with all laws and regulations; c. encourage efforts to conserve the customary life and original culture of Papua Province; d. nurture harmonious relations among adherents of different religious faiths; and e. encourage women empowerment. (2) The procedures for performing the obligations as referred to in paragraph (1) shall be laid down in a Special Regional Regulation with due observance of the Government Regulation. Article 24 (1). MRP members shall be elected by members of the customary community, religious community and women community. (2). The procedures for electing MRP members as referred to in paragraph (1) shall be laid down in a Regional Regulation with due observance of the Government Regulation. Article 25 (1). The Governor shall convey the result of the election as referred to in Article 24 to the Home Affairs Minister for endorsement. (2). The Home Affairs Ministers shall induct the MRP members.

11 (3). The procedures for implementing the provisions in paragraph (1) and paragraph (2) shall be laid down in a Government Regulation. CHAPTER VI APPARATUSES AND PERSONNEL Article 26 (1). The apparatuses of Papua Province shall consist of Provincial Secretariat, Provincial Office, and other technical institutes formed according to the need of Papua Province. (2). The apparatuses of MRP and DPRP shall be formed according to the need. (3) The implementation of provisions in paragraph (1) and paragraph (2) shall be laid down in a Regional Regulation with due observance of the law. Article 27 (1). The Provincial Government shall stipulate policies on the personnel of Papua Province based on the norms, standards and procedures applicable to civil servants management with due observance of the law. (2). In the event that the provisions in paragraph (1) are not fulfilled, the Provincial Government and the Regencial/Municipal Governments can stipulate personnel policies according to the need and interests of the region concerned. (3). The implementation of provisions in paragraph (2) shall be laid down in a Regional Regulation. CHAPTER VII POLITICAL PARTIES Article 28 (1). The people of Papua Province can form a political party. (2). The procedures for forming a political party and participating in general elections shall agree with the law. (3). The political recruitment of political parties in Papua Province shall give priority to the original community of Papua. (4). Political parties shall consult MRP on the selection and political recruitment of their respective political parties. CHAPTER VIII SPECIAL REGIONAL REGULATIONS, REGIONAL REGULATIONS, AND GUBERNATORIAL DECISIONS Article 29 (1). DPRP, along with the Governor, shall draft and endorse Special Regional Regulations with considerations and approval from MRP. (2). DPRP, along with the Governor, shall draft and endorse Regional Regulations. (3). The procedures for giving considerations and approval from MRP as referred to in paragraph (1) shall be laid down in a Regional Regulation. (4). The procedures for enacting the Regional Regulations as referred to in paragraph (1) and paragraph (2) shall be stipulated in accordance with the law. Article 30

12 (1). The implementation of Special Regional Regulations and Regional Regulations shall be laid down in a Gubernatorial Decision. (2). The Gubernatorial Decision as referred to in paragraph (1) shall not run counter to the public interests, Special Regional Regulations and Special Regulations. Article 31 (1). The Special Regional Regulations, Regional Regulations and Gubernatorial Decisions that function as regulators shall be promulgated by placing them in the Regional Gazette of Papua Province. (2). The Special Regional Regulations, Regional Regulations and Gubernatorial Decisions that function as regulators shall have legal and binding strength after being promulgate in the Regional Gazette of Papua Province. (3). The Provincial Government shall socialize the Special Regional Regulations, Regional Regulations and Gubernatorial Decisions as referred to in paragraph (2). Article 32 (1). To increase the effectiveness of law enforcement in Papua Province, an Ad Hoc Legal Commission can be formed. (2). The function, task, authority, model and line-up of the Ad Hoc Legal Commission as referred to in paragraph (1) shall be laid down in a Regional Regulation. CHAPTER IX FINANCE Article 33 (1). The funds needed to carry-out the tasks of the Provincial Government, DPRP and MRP shall originated from the Regional Budget. (2). Tile funds needed to carry out the tasks of the Government in Papua Province shall originate from the State Budget. Article 34 (1). The sources of revenue of the Province, Regencies/Municipalities shall cover : a. the original income of the Province, Regencies/Municipalities; b. balancing, funds; c. the revenue of the Province in the framework of special autonomy; d. regional loans; and e. other legal receipts. (2). The sources of original income of the Province, Regencies/Municipalities, as referred to in paragraph (1) letter a shall consist of : a. regional taxes b. regional levies c. profit gained by regional government-owned companies and profits gained from the management of other regional assets separated; and d. other legal regional income. (3). The balancing funds as portion of the Province, Regencies/Municipalities in the framework of special autonomy shall be broken down as follows :

13 a. Portion of tax receipts : 1). Land and Building, Tax as much as 90% (ninety percent); 2). Land and Building Title Acquisition Fees as much as 80% (eighty percent); 3). Income Tax Individuals as much as 20% (twenty percent). b. Portion of natural resources receipts : 1).Forestry as much as 80% (eighty percent) 2).Fishery as much as 80% (eighty percent) 3).General mining as much as 80% (eighty percent) 4).Natural oil mining as much as 70% (seventy percent) 5).Natural gas mining as much as 70% (seventy percent) c. General Allocation Funds stipulated in accordance with the law; d. Special Allocation Funds stipulated in accordance with the law. e. Special receipts in the framework of special autonomy as much as 20% (two percent) of the National General Allocation Fund ceiling, particularly designed to finance the education and health sectors; and f. Extra funds in the framework of special autonomy the amount of which is set by the Government and the House of Representatives (DPR) based on the proposal from the Province every budget year, particularly designed to finance the development of infrastructures. (4). The receipts in the framework of special autonomy as referred to in paragraph (3) letter b point 4) and point 5) shall be valid for 25 (twenty five) years; (5). Beginning in the 26 th year, the receipts in the framework of special autonomy as referred to in paragraph (4) from natural oil mining and natural gas mining shall be lowered to 50% (fifty percent) respectively; (6). The receipts in the framework of special autonomy as referred to in paragraph (3) letter e shall be valid for 20 (twenty) years. (7). The sharing of the receipts as referred to in paragraph (3) letter b point 4) and point 5), and letter e between the Province and Regencies/Municipalities or the like shall be laid down in a Special Regional Regulation in a fair and balanced manner by paying special attention to backward regions. Article 35 (1). Papua Province can receive foreign aid after informing it to the Government. (2). Papua Province can make domestic and/or foreign loans to finance part of its budget. (3). Domestic loans for Papua Province shall secure approval from DPRP. (4). Foreign loans for Papua Province shall secure considerations and approval from DPRP and the Government with due observance of the law. (5). The cumulative amount of loans as referred to in paragraph (3) and paragraph (4) shall not exceed the certain percentage of the total receipts in the Regional Budget in accordance with the law. (6). Further provisions on the realization of aid as referred to in this article shall be laid down in a Regional Regulation. Article 36 (1). The amendment and calculation of the Regional Budget of Papua Province shall be laid down in a Regional Regulation. (2). At least 30% (thirty percent) of the receipts as referred to in Article 34 letter b point 4) and point 5) shall be allocated to the education sector and at least 15% (fifteen percent) for the health sector and nutrition improvement efforts.

14 (3). The procedures for drafting and realizing the Regional Budget of Papua Province, and the amendment, calculation, accountability and supervision of the Regional Budget of Papua Province shall be laid down in a Regional Regulation. Article 37 Data and information on tax receipts and non-tax receipts originating from Papua Province shall be conveyed to the Provincial Government and DPRP every budget year. CHAPTER X ECONOMY Article 38 (1). The economy of Papua Province as part of the national and global economy shall be directed towards creating the greatest possible prosperity and welfare of the entire people of Papua by upholding the principles of justice and evenly distribution. (2). Business undertakings in Papua Province that take advantage of natural resources shall be carried on by constantly respecting the rights of the customary community, giving legal certainly to business people, observing the principles of environmental conservation and sustainable development as laid down in a Special Regional Regulation. Article 39 Further processing for the use of natural resources as referred to in Article 38 shall take place in Papua Province with due observance of sound, efficient and competitive economic principles. Article 40 (1). The licenses issued by the Government and/or the Provincial Government and the cooperation agreements signed by the Government and/or the Provincial Government and other parties shall remain valid and shall be respected. (2). The licenses and agreements as referred to in paragraph (1), which by virtue of a court verdict with fixed legal strength have been declared legally defective, detrimental to the people's rights to live or contrary to this law, shall be subject to a review without reducing the legal obligation imposed on the license holders and agreements concerned. Article 41 (1). The Provincial Government of Papua can make capital participation in state-owned companies (BUMN) and private companies which are domiciled and operating in the territory of Papua Province. (2). The procedures for making the capital participation of the Provincial Government of Papua as referred to in paragraph (1) shall be laid down in a Regional Regulation. Article 42 (1). The development of people-based economy shall be implemented by giving the greatest possible opportunities to the customary community and/or the local community. (2). The investors that make investments in the territory of Papua Province shall recognize and respect the rights of the local customary community. (3). Negotiations between the Provincial, Regencial/Municipal Government and investors shall involve the local customary community.

15 (4). The business opportunities as referred to in paragraph (1) shall be given within the framework of empowering the customary community to enable then to play the greatest role in the economic sector. CHAPTER XI THE PROTECTION OF THE CUSTOMARY COMMUNITY'S RIGHTS Article 43 (1). The Provincial Government of Papua shall recognize, respect, protect, empower and develop the rights of the customary community with due observance of the law. (2). The rights of the customary community as referred to in paragraph (1) shall cover the communal rights of the customary law community and the individual rights of the members of the customary law community concerned. (3). The exercise of communal rights, as long as they still exist, shall be done by the customary administrator of the customary law community concerned by respecting the legal control by other parties of former communal preserved land in accordance with the existing procedures and law. (4). The appropriation of communal preserved land and individual land and members of the customary law community for any purposes shall be based on dialogs with the customary law community and the concerned resident to reach an agreement of the transfer of land and the amount of compensations. (5). The Provincial, Regential/Municipal Government shall give active mediation in an effort to settle dispute over communal preserved land and former individual rights in a just and wise manner to reach an agreement acceptable to all parties concerned. CHAPTER XII HUMAN RIGHTS Article 45 (1). The Government, the Provincial, Government, and the people of Papua Province shall uphold, encourage, protect, and respect human rights in Papua Province. (2). To carry out the obligations as referred to in paragraph (1), the Government shall form the representative office of the National Commission on Human Rights, the Human Rights Tribunal, and the Truth and Reconciliation Commission in Papua Province in accordance with the law. Article 46 (1). To strengthen nation cohesion and unity in Papua Province, a Truth and Reconciliation Commission shall be formed. (2). The Truth and Reconciliation as referred to in paragraph (1) shall be assigned to : a. clarify the history of Papua and strengthen the national cohesion and unity within the unitary Republic of Indonesia; and b. draft and endorse reconciliatory steps. (3). The lineup, position, procedure for carrying out tasks and funding of the Truth and Reconciliation Commission as referred to in paragraph (1) shall be laid down in a Presidential Decree based on proposal from the Governor. Article 47 To uphold the human rights of women, the Provincial Government shall nurture and protect their rights as well as empower them in a dignified way and make every effort to put them on a par with men.

16 CHAPTER XIII REGIONAL POLICE OF PAPUA PROVINCE Article 48 (1). The police task in Papua Province shall be carried out by the Regional Police in Papua Province as part of the Police of the Republic of Indonesia. (2). The Chief of the Regional Office of Papua Province shall coordinate with the Governor in stipulating policies on security in Papua Province. (3). Details of the police task as referred to in paragraph (1) in the field of public peace and order including the expenses arising from the realization of task shall be further laid down in Regional Regulation. (4). The Chief of the Regional Office of Papua Province shall account for the realization of police task as referred to in paragraph (3) to the Governor. (5). The Chief of the Police of the Republic of Indonesia shall appoint the Chief of the Regional Office of Papua Province with approval from the Governor of Papua Province. (6). The Chief of the Police of the Republic of Indonesia shall dismiss the Chief of the Regional Police of Papua Province. (7). The Chief of the Regional Police of Papua Province shall be responsible to the Chief of the Republic of Indonesia for the development of police in Papua Province in carrying out the task of the Police of the Republic of Indonesia. Article 49 (1). The Regional Police of Papua Province shall select the commissioned -officers and non-commissioned officers of the Police of the Republic of Indonesia in Papua Province with due observance of the legal system, Cultures customs, gubernatorial policy in Papua Province. (2). The curriculum of basic education and general training for non-commissioned officers of the Police of Republic of Indonesia in Papua Province shall cover local content and the graduates shall mainly be assigned in Papua Province. (3). The Police of the Republic of Indonesia shall organize the education and nurture of commissioned officers of the Police of the Republic of Indonesia hailing from Papua Province at a national level. (4). The placement of commissioned officers and non-commissioned officers of the Police of the Republic of Indonesia from outside Papua Province shall be based on the Decision of the Chief of the Police of the Republic of Indonesia with due observance of the legal system, culture and customs in the areas where they are assigned. (5). In the event of new placement or relocation of police unit in Papua Province the Government shall coordinate with the Governor. CHAPTER XIV JUDICIAL AUTHORITY Article 50 (1). The judicial authority in Papua Province shall be implemented by a Court Agency in accordance with the law. (2). In addition to the judicial authority as referred to in paragraph (1) a customary court in certain customary law community shall be recognized. Article 51

17 (1). The customary court shall be a peace court within the customary law community, which is authorized to investigate and try customary civil disputes and criminal cases among members of the customary law community concerned. (2). The customary court shall be established according to the customary law prevailing in the customary law community concerned. (3). The customary court shall investigate and try customary civil disputes and criminal cases as referred to in paragraph (1) based on the customary law prevailing in the customary law community concerned. (4). In the event that one of the conflicting parties has an objection to a decision already issued by the customary court investigating the case as referred to in paragraph (3), the party that has an objection to the decision shall be entitled to ask the first-level court in the authorized court agency to re-investigate and retry the dispute or case concerned. (5). The customary court shall not be authorized to mete out jail sentence. (6). The decision of the customary court on criminal case for which the re-investigation as referred to in paragraph (4) is not requested shall become a final decision with fixed legal strength. (7). To acquit a criminal of criminal charges according to the existing criminal code, there shall be a statement of approval for execution from the Head of the District Court overseeing it through the Head of the Public Prosecutor's Office related to the scene of the criminal case as referred to in paragraph (3). (8). In the event that the District Court rejects a request for a statement of approval for execution of the decision of the customary court as referred to in paragraph (7), the District Court shall consider the decision of the customary court as referred to in paragraph (6) in deciding the relevant case. Article 52 (1) The Office of Prosecutors of Papua Province as part of the Offices of the Republic of Indonesia shall carry out prosecution task. (2) The Attorney General of the Republic of Indonesia shall appoint Chiefs of the Offices of High Prosecutors in Papua Province with approval from the Governor. (3) The Attorney General of the Republic of Indonesia shall dismiss Chiefs of the Offices of High Prosecutors in Papua Province. CHAPTER XV RELIGIOUS AFFAIR Article 53 (1) Any inhabitant of Papua Province shall have the right and freedom to adhere to a religion and faith of their own. (2) Any inhabitant of Papua Province shall respect religious values, maintain harmonious relations among different religious faiths, and prevent any attempt to spoil the cohesion and unity of the community of Papua Province and the unitary Republic of Indonesia. The Provincial Government of Papua shall : Article 54 a. ensure the freedom, nurture the harmonious relations and protect all religious adherents to perform religious service according to their religion and faith; b. respect religious values adopted by religious adherents; c. recognize the autonomy of religious institutes; and d. give support to each religious institutes in proportion to the number of religious followers and the support is not binding.

18 Article 55 (1) The Government shall allocate funds and other resources for the development of the religious sector in Papua Province in proportion to the number of religious followers and the funds and other resources are not binding. (2) The Government shall delegate part of authority to the Governor of Papua Province to license the placement of expatriates in the religious sector in Papua Province. CHAPTER XVI EDUCATION AND CULTURE Article 56 (1) The Provincial Government of Papua shall be responsible for the provision of all levels and types of education in Papua Province. (2) The Government shall stipulate general policies on the autonomy of the institute of higher learning, main curriculum, and quality standard of all levels and types of education s the operational guidelines for the institutes of higher learning and the Provincial Government. (3) Any inhabitant of Papua Province shall be entitled to quality education as referred to in paragraph (1) up to the level of secondary school with the lowest possible burden of the community. (4) In developing and providing education, the Provincial Government and Regencial/Municipal Governments shall give the widest possible opportunities to religious institutes, non governmental organizations and business entities that meet requirements according to the law to provide and develop quality education in Papua Province. (5) The Provincial Government and Regencial/Municipal Governments shall provide assistance and/or subsidies for the community to provide education. Article 57 (1) The Provincial Government shall protect, nurture and develop the original culture of Papua. (2) In performing the duty as referred to in paragraph (1), the Provincial Government shall give the greatest possible role to the community including the qualified non governmental organizations. (3) The execution of the duty as referred to in paragraph (2) shall be accompanied by the provision of funds. (4) Further provisions needed to implement provisions in paragraph (2) and paragraph (3) shall be laid down in a Regional Regulation. Article 58 (1) The Provincial Government shall nurture, develop and preserve varieties of local languages and literatures to maintain and strengthen the identity of the people of Papua. (2) In addition to Bahasa Indonesia as the national language, English shall be declared as the second language in all levels of education. (3) Local languages can be used an introductory language in the elementary school according to the need. CHAPTER XVII HEALTH Article 59 (1) The Provincial Government shall determine the quality standard of health service and provide health services for the people.

19 (2) The Government, the Provincial Government and the Regencial/Municipal Governments shall prevent and control endemic diseases and/or diseases that are dangerous to the survival of the people. (3) Any inhabitant of Papua shall be entitled to health services as referred to in paragraph (1) with the lowest possible burden of the community. (4) In performing the duty as referred to in paragraph (1) and paragraph (2), the Provincial Government shall give the greatest possible role to religious institutes, non governmental organizations and business entities that meet the requirements. (5) Provisions on the obligation to provide health services with the lowest possible burden of the community as referred to in paragraph (3), and on the participation or religious institutes, non governmental organizations and business entities as referred to in paragraph (4) shall be further laid down in a Regional Regulation. Article 60 (1) The Provincial Government and the Regencial/Municipal Government shall plan and implement programs on the improvement and promotion of the nutrition of the people by involving religious institutes, non governmental organizations and business entities at meet the requirements. (2) The provisions as referred to in paragraph (1) shall be further laid down in a Regional Regulation. CHAPTER XVIII POPULATION AND MANPOWER Article 61 (1) The Provincial Government shall nurture, supervise and control the population growth in Papua Province. (2) To accelerate the empowerment, quality improvement and participation of the original inhabitants of Papua in all development sectors, the Provincial Government shall enforce population policies. (3) The resettlement of people in Papua Province under the framework of national transmigration program carried out by the Government shall secure approval from the Governor. (4) The resettlement of people as referred to in paragraph (3) shall be laid down in a Regional Regulation. Article 62 (1) Any people shall be entitled to fair job and income and be free to choose and/or change job according to their talent and capability. (2) The original people of Papua shall be entitled to and be given priority to get jobs in all fields of jobs in Papua Province according to their education and expertise. (3) When getting the job as referred to in paragraph (2) in the judicial field, the original people of Papua shall be given priority to become judges or prosecutors in Papua Province. (4) Provisions as referred to in paragraph (1) and paragraph (2) shall be further laid down in a Regional Regulation.. CHAPTER XIX SUSTAINABLE DEVELOPMENT AND THE ENVIRONMENT Article 63 The development in Papua Province shall be implemented on the basis of the principles of sustainable development, environmental conservation, benefit and justice with the observance of the spatial layout plan. Article 64