DECREE OF THE MINISTER OF FINANCE
No.298/KMK.01/1997

ON
PROVISION ON THE TRANSFER OF CAPITAL GOODS FOR COMPANIES SET UP IN FOREIGN INVESTMENT (PMA)/DOMESTIC INVESTMENT (PMDN) SCHEME AND NON-PMA/PMDN COMPANIES

THE MINISTER OF FINANCE

Considering :

that in the framework of boosting investments at home and because of legal certainty in the transfer of capital goods for PMA/PMDN companies and non-PMA/PMDN companies, it is deemed necessary to stipulate provisions on the transfer of capital goods;

In view of :

• 1. Law No.1/1967 on foreign investment (Statute Book No.1/1967, Supplement to Statute Book No.28180 jo. Law No.11/1970 (Statute Book No.46/1970, Supplement to Statute Book No.2943);
• 2. Law No.6/1968 on domestic investment (Statute Book No.33/1968, Supplement to Statute Book No.2853) jo. Law No.12/1970 (Statute Book No.47/1970, Supplement to Statute Book No.2944);
• 3. Law No.5/1984 on industrial affairs (Statute Book No.22/1984, Supplement to Statute Book No.3274);
• 4. Law No.10/1995 on customs affairs (Statute Book No.75/1995, Supplement to Statute Book No.3612);

DECIDES

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE CONCERNING THE PROVISION ON THE TRANSFER OF CAPITAL GOODS FOR COMPANIES SET UP IN THE FOREIGN INVESTMENT (PMA)/DOMESTIC INVESTMENT SCHEME AND NON-PMA/PMDN COMPANIES.

Article 1

Capital goods in the form of imported machinery owned by PMA/PMDN and non-PMA/PMDN companies in the framework of construction or restructuring shall enjoy the following facilities:

• a. exemption of import duties;
• b. exemption of import duties on the import of goods (raw materials and materials (auxiliary materials) to meet the need of production/additional production for 2 (two) years; may be transferred without the obligation to pay import duties on the facilities received if the period of 2 (two) years as from their import has passed.

Article 2

Capital goods in the form of machinery originally purchased at home and owned by PMA/PMDN and non-PMA/PMDN companies in the framework of construction or restructuring and enjoying the facilities of import duty exemption in the import of the goods (raw materials) and materials (auxiliary materials) to meet the need of production/additional production for 2 (two) years may be transferred without the obligation to pay the import duties on the goods (raw materials) and materials (auxiliary materials) if the period of 2 (two) years as from their. purchase has passed.

Article 3

The transfer of capital goods prior to the period as meant in Article 1 and Article 2 shall result in the cancellation of the facilities granted with the company concerned being obligated to pay in full the outstanding import duties on the facilities received.

Article 4

This decree shall take effect as from the date of stipulation.

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

Stipulated in Jakarta
On July 4, 1997

THE MINISTER OF FINANCE ,
sgd.
MAR'IE MUHAMMAD