DECREE OF THE MINISTER OF FINANCE
No. 386/KMK.04/2004
ON
SUB-CONTRACT JOBS FROM OTHER INDONESIAN CUSTOMS AREA TO BONDED ZONE
THE MINISTER OF FINANCE,
Considering:
- a. that in the framework of maintaining investments and continuation of businesses in connection with the decrease in export orders arising from the economic crisis, on the basis of Decree of the Minister of Finance No. 162/KMK.04/2003, companies having status of bonded zone are given license to execute sub-contract jobs from Other Indonesian Customs Area (DPIL) to Bonded Zone;
- b. that the validity period of Decree of the Minister of Finance No. 162/KMK.04/2003 expired on April 29,2004;
- c. that since companies having status of bonded zone still record a decrease in export orders, they need to be licensed to undertake sub-contract jobs from DPIL;
- d. that based on the considerations as meant in letters a, b and c, 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 (BN No. 6504 pages 9A - 13A and so on) (Statute Book of 2000 No. 126, Supplement to Statute Book No. 3984),;
- 2. 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 Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
- 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. Government Regulation No. 11/1995 on bonded collection place (Statute Book of 1995 No. 50, Supplement to Statute Book No. 3638) as already amended by Government Regulation (Statute Book of 1997 No. 90, Supplement to Statute Book No. 3717);
- 7. Presidential Decree No. 228/M/2001;
- 8. Decree of the Minister of Finance No. 291/KMK.05/1997 on bonded zone as already amended 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 AREA TO BONDED ZONE.
Article 1
(1) Businessmen in Bonded Zones (PDKB) can receive sub-contract jobs from producers in/from DPIL.
(2) In order to enable the businessmen to undertake the sub-contract jobs as meant in paragraph (1), approval of the Director General of Customs and Excise shall be obtained.
(3) The approval as meant in paragraph (2) only can be granted once with a period of one year at the maximum.
(4) The approval as meant in paragraph (3) can be issued as from the date of enforcement of this decree to one year after the date of enforcement of the decree.
(5) The import of goods and/or materials from producers using Import Relief Facilities for Export Purpose (KITE) and from DPIL to Bonded Zones for the purpose of the sub contract jobs as meant in paragraph (2) shall use form BC.4.0, accompanied by sub-contract agreement.
(6) The re-import of goods and materials resulting from subcontract jobs in Bonded Zone to DPIL shall be enclosed by tax invoice.
Article 2
The sub-contract, jobs executed by PDKB in Bonded Zones shall continue to be subjected to value added tax on service in accordance with the provision in force.
Article 3
The decree shall come into force as from the date of stipulation.
For public cognizance, the decree shall be announced by placing it in State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On August 31,2004
THE MINISTER OF FINANCE,
sgd
BOEDIONO