DECREE OF THE MINISTER OF FINANCE
No. 162/KMK.04/2003
CONCERNING
SUB-CONTRACT JOBS FROM OTHER INDONESIAN CUSTOMS AREAS TO BONDED ZONES
THE MINISTER OF FINANCE,
Considering:
- a. that the ongoing economic condition causes many export-oriented manufactures, especially companies of the bonded zone status to record a decrease in export orders driving down production and discontinuing the operation of companies;
- b. that in the framework of maintaining investments and continuation of the bonded companies as meant in letter a, it is necessary to provide fiscal facilities that can maintain investments and continuity of companies cum encourage and drive up investments, namely by means of regulating import of goods and/or materials from other Indonesian customs areas (DPIL) to bonded zone (KB) in the framework of sub-contracts;
- c. that Decree of the Minister of Finance on the amendment to Decree of the Minister of Finance No.29/KMK.05/ 1997 on bonded zone as already amended several times and the latest by Decree of the Minister of Finance No. 37/KMK.04/2002 does not regulate the import of goods and/or materials from DPIL to KB in the framework of sub-contracts;
- d. that based on the above-mentioned considerations, it is necessary to stipulate a decree of the Minister of Finance on sub-contract jobs from other Indonesian customs areas to bonded zone;
In view of:
- 1. Law No. 6/1983 on taxation general provisions and procedures (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as already amended several times and the latest by Law No. 16/2000 (Statute Book of 2000 No. 126, Supplement to Statute Book No. 3981),
- 2. Law No. 7/1983 on income tax (Statute Book of 1983 No. 50, Supplement to Statute Book No. 3263) as already amended several times and the latest by Law No. 17/2000 (Statute Book of 2000 No. 127, Supplement to Statute Book No. 3985);
- 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 several times and the latest by Lam No. 1S/2000, (Statute Book of 2000 No. 128, Supplement to Statute Book No. 39S6);
- 4. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
- 5. Law No. 11J1995 on excise affairs (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
- 6. Government Regulation No. 33j1996 on bonded collection places (Statute Book of 1996 No. 50, Supplement to Statute Book No. 3638) as already amended by Government Regulation No. 43/1997 (Statute Book of 1991 No. 90, Supplement to Statute Book No. 3717);
- 7. Decree of the Minister of Finance No.29!KMK.05/1997 on bonded zone as already amended several times and the latest by Decree of the Minister of Finance No. 37/KMK.04/2002;
DECIDES :
To stipulate:
THE DECREE OF THE MINISTER OF FINANCE ON SUB-CONTRACT JOBS FROM OTHER INDONESIAN CUSTOMS AREAS TO BONDED ZONES
Article 1
(1) Entrepreneurs operating in bonded zones (PDKB) can receive sub-contract jobs from producers in/from DPIL.
(2) In order to enable the entrepreneurs to undertake the sub-contract jobs as meant in paragraph (1), they must secure approval from the Director General of Customs and Excise.
(3) The approval as meant in paragraph (1) only can be granted once with the validity period of one year at the maximum.
(4) The approval as meant in paragraph (3) can be issued date of enforcement of this decree to one year after the date of this decree.
(5) Import goods and/or materials from producers using facilities of Bapeksta Keuangan and from DPIL to KB for the purpose of the sub-contract as meant in paragraph (2) uses form BC.4.0, accompanied by sub contract agreement.
(6) Re-import of goods and materials resulting from sub-contract jobs to KB and DPIL must be accompanied by tax invoice.
Article 2
Sub-contract jobs executed by PDKB in KB continue to be subjected to value added tax on service in accordance with the provision in force.
Article 3
This decree comes into force as from the stipulation.
For public cognizance, this decree shall be published by placing it in State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On April 29, 2003
THE MINISTER OF FINANCE
sgd.
BOEDIONO