that in framework of boosting the increase of investments in the country and in order to provide legal certainty regarding the transfer of capital goods for Foreign/Domestic Investment (PMA/PMDN) companies and non-PMA/PMDN companies located in bonded areas, it is deemed necessary to amend provisions in the Decree of the Minister of Finance No.298/KMK.01/1997 on the transfer of capital goods for PMA/PMDN companies and non-PMAIPMDN companies by issuing a decree of the Minister of Finance.
THE DECREE OF THE MINISTER OF FINANCE ON AMENDMENT TO THE DECREE OF THE MINISTER OF FINANCE NO. 298/KMK.01/1997 CONCERNING PROVISIONS ON THE TRANSFER OF CAPITAL GOODS FOR FOREIGN INVESTMENT (PMA) COMPANIES, DOMESTIC INVESTMENT (PMDN) COMPANIES AND NOW PMA/PMDN COMPANIES.
To amend several provisions in the Decree of the Minister of Finance No.298/KMK.01/1997 to become as follows :
1. To amend Article 1 so as to read as follows :
"Article 1
Capital goods in the form of imported machines belonging to Foreign/Domestic Investment (PMA/PMDN) companies and non-PMA/PMDN companies in the framework of construction or development by securing facilities of exemption from import duty on machines, goods and material, if the two-year period as from the realization of imports or the moment the machines become assets of companies has already elapsed, can be transferred without obligation to pay import duty owed and fines for the facilities which are received."
2. To amend Article 3 so as to read as follows :
"Article 3
The transfer of capital goods before the two year period as meant in Articles 1 and 2 shall cause the facilities granted to become null and companies are obliged to pay import duty owed and fines for the facilities received for :
a. imported machines; and/or
b. goods and materials (auxiliary materials), whose amount is in proportion to the rates of capacity of machines transferred."
3. To supplement new provisions between Articles 3 and 4 to become Articles 3A, 3B, 3C, 3D and 3E which read as follows :
"Article 3A
(1) Capital goods to be handed over or transferred /depreciated from assets of companies before the two year period elapses can be exempted from the obligation to pay import duty owed and fines for the facilities received, in the case of the occurrence of force majeur so that the capital goods are heavily damaged and can no longer be used.
(2) Licences to hand over or transfer capital goods assets before the two year period elapses from companies receiving facilities of the exemption of import duty to other companies receiving facilities of the exemption from import duty without obligation to pay import duty owed and fines for the facilities received, can be given on the basis of recommendations from the Investment Coordinating Board (BKPM).
(3) The handing over of capital goods or the transfer of capital goods assets by means of re-exporting before the two year period elapses, without obligation to pay import duty owed and fines for the facilities received, can be given on the basis of recommendations from BKPM.
Article 3B
The provisions on the transfer of the capital goods as meant in this decree shall also be effective for capital goods in bonded areas.
Article 3C
(1) Applications for licences to hand over or transfer capital goods assets shall be submitted to the Director General of Customs and Excise.
(2) The Director General of Customs and Excise on behalf of the Minister of Finance shall grant licences to transfer capital good assets.
(3) The transfer of capital goods without licences from the Director General of Customs and Excise on behalf of the Minister of Finance as meant in paragraph (2) shall be subjected to import duty owed and fines according to laws in force.
Article 3D
The transfer of capital goods shall exclude the transfer of capital goods in sale and lease back transactions, with the provision that the capital goods are still in the hands of and used by recipients of facilities in their business activities.
Article 3E
Technical directives for this decree shall be further stipulated by the Director General of Customs and Excise."
This decree shall come into force as from the date of stipulation.
For public cognizance, this decree shall be published by placing State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On August 3, 1999
THE MINISTER OF FINANCE,
sgd
BAMBANG SUBIANTO