DECREE OF THE MINISTER OF FINANCE
No.144/KMK.05/1997

ON
DUTY AND EXCISE EXEMPTION FOR GIFTS TO BE USED FOR PUBLIC WORSHIP, CHARITY, SOCIAL AND CULTURAL PURPOSES

THE MINISTER OF FINANCE,

Considering :

that within the framework of implementing Law No. 10/1995 on customs affairs, it is deemed necessary to regulate the granting of import duty and excise exemption to gifts imported to be used for public worship, charity, social and cultural purposes, in a decree of the Minister of Finance.

In view of :

• 1. Law No.6/1983 on general tax provisions and procedures (Statute Book of 1983 No.49, Supplement to Statute Book No.3262) as already amended by Law No.9/1994 (Statute Book of 1994 No.59, Supplement to Statute Book No.3567);
• 2. Law No.7/1983 on income tax (Statute Book of 1983 No.50, Supplement to Statute Book No.3263) as already amended the latest by Law No. 10/1994 (Statute Book of 1994 No.60, Supplement to Statute Book No.3568);
• 3. Law No.8/1983 on value added tax on goods and services and sales tax on luxury goods (Statute Book of 1983 No.51, Supplement to Statute Book No. 3264) as already amended by Law No. 11/1994 (Statute Book of 1994 No.61, Supplement to Statute Book No.3569);
• 4. Law No. 10/1995 on customs affairs (Statute Book of 1995 No.75, Supplement to Statute Book No.3612);
• 5. Law No. 11/1995 on excise affairs (Statute Book of 1995 No.76, Supplement to Statute Book No.3613);
• 6. The Decree of the Minister of Finance No.25/KMK.05/1997 on customs procedures in the import sector.

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE CONCERNING IMPORT DUTY AND EXCISE EXEMPTION FOR GIFTS TO BE USED FOR PUBLIC WORSHIP, CHARITY, SOCIAL AND CULTURAL PURPOSES.

Article 1

Hereinafter referred to as gifts to be used for public worship, charity, social and cultural purposes shall be:

• a. goods needed for the construction or repair of worship buildings, hospitals, polyclinics, and schools or goods which will constitute their fixed assets;
• b. Clinic cars, patient transport facilities, public worship officer transport facilities, health officer transport facilities;
• c. goods-needed for permanent use by associations and organizations for cultural purposes;
• d. goods needed for public worship like prayer mats, carpets, or chalices for holy masses;
• e. surgery instruments, therapeutic devices and dressing materials for social organizations;
• f. foods, medicines and clothes for free distribution to needy communities, including aid to natural disaster victims;
• g. study and teaching equipment for educational institutes and provided free of charge to promote the intelligence of society.

Article 2

The import goods as meant in Article 1 shall be granted import duty and excise exemption.

Article 3

(1) The organizations or institutes engaged in public worship, charity, social and cultural activities which are entitled to the exemption as meant in Article 2 shall be appointed by the Minister of Finance.

(2) The goods imported by the appointed organizations or institutes as meant in paragraph (1) shall be granted the exemption as meant in Article 2 after obtaining exemption decisions from the Director General of Customs and Excise on behalf of the Minister of Finance, based on applications with the following attachments:

• a. quantitative details and types of goods whose import duty exemption is requested and their customs value;
• b. gift certificates from overseas contributors declaring that the goods are granted and their procurement uses no Indonesian foreign exchange;
• c. recommendations from relevant technical ministries.

(3) The goods imported by organizations or institutes not yet appointed as meant in paragraph (1) shall be granted the exemption as meant in Article 2 after obtaining exemption decrees from the Minister of Finance, based on applications through the Director General of Customs and Excise with the following attachments:

• a. quantitative details and types of goods whose import duty exemption is requested;
• b. gift certificates from overseas contributors declaring that the goods are granted and their procurement uses no Indonesian foreign exchange;
• c. recommendations from relevant technical ministries.

Article 4

The Director General of Customs and, Excise shall further stipulate technical provisions required for the implementation of this decree.

Article 5

All organizations or institutes already appointed as those which are entitled to exemption on the basis of Presidential Decree No.133/1953, shall be stipulated as organizations or institutes obtaining exemption on the basis of this decree.

Article 6

This decree shall come into force as from April 1, 1997.

For public cognizance, this decree shall be announced by publishing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On March 31, 1997

THE MINISTER OF FINANCE,
sgd.
MAR'IE MUHAMMAD