DECREE OF THE MINISTER OF FINANCE
No. 587/PMK.04/2004

ON
THE SIXTH AMENDMENT TO DECREE OF THE MINISTER OF FINANCE
No. 291/KMK.05/1997 ON BONDED ZONE

THE MINISTER OF FINANCE,

Considering :

• a. that in the framework of providing fiscal facility for increasing investments in Indonesia and efficiency for entrepreneurs in bonded zones, it is deemed necessary to amend Decree of the Minister of Finance No. 291/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;
• b. that based on the consideration as meant in letter a, a regulation of the Minister of Finance on the sixth amendment to Decree of the Minister of Finance No. 291/KMK.05/1997 concerning bonded zone needs to be stipulated;

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. 3984);
• 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 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. 33/1996 on bonded collection place (Statute Book of 1996 No. 50, Supplement to Statute Book No. 3638) as already amended by Government Regulation No. 43/1997 (Statute Book of 1997 No. 90, Supplement to Statute Book No. 3717);
• 7. Presidential Decree No. 187/M/2004;
• 8. Decree of the Minister of Finance No. 291/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 REGULATION OF THE MINISTER OF FINANCE ON THE SIXTH AMENDMENT TO DECREE OF THE MINISTER OF FINANCE NUMBER: 291/KMK.05/1997 ON BONDED ZONE.

Article 1

To amend the provision in Article 14 letter j of Decree of the Minister of Finance No. 291/KMK.05/1995 and supplement one letter, namely letter l, after letter k so that the article entirely reads as follows:

"Article 14

On the import of goods, the import of taxable goods (BKP), dispatch of production, release of goods, re-delivery of BKP, borrowing of machines, import of excisable goods (BKC) to and/or from Bonded Zones (KB) shall be given the following facilities:

• a. on the import of capital goods or equipment and stationery solely used- by PKB, including PKB cum PDKB, import duty shall be postponed, Value Added Tax, Sales Tax on Luxury Goods and Income Tax article 22 on import shall not be collected;
• b. on the import of capital goods and factory equipment directly connected with production activities of PDKB solely used in PDKB, import duty shall be postponed, Value Added Tax, Sales Tax on Luxury Goods and Income Tax-article 22 on import shall not be collected;
• c. on the import of goods and/or materials for processing in PDKB, import duty shall be postponed, excise shall be exempted, Value Added Tax, Sales Tax on Luxury Goods and Income Tax-article 22 on import shall not be collected;
• d. on the import of BKP from Other Indonesian Customs Area (DPIL) to PDKB for further processing, Value Added Tax and Sales Tax on Luxury Goods shall not be collected;
• e. on the dispatch of production of PDKB to other PDKB for further processing, Value Added Tax and Sales Tax on Luxury Goods shall not be collected;
• f. on the release of goods and/or materials from PDI:B to manufacturing industries in DPIL or other PDKB in the framework of sub-contract, Value Added Tax and Sales Tax on Luxury Goods shall not be collected;
• g. on re-delivery of BPK resulting from sub-contract jobs by PKP in DPIL or other PDKB to original PKP, PDKB, Value Added Tax and Sales Tax on Luxury Goods shall not be collected;
• h. on the borrowing of machines and/or factory equipment in the framework of sub-contract from PDKB to manufacturers in DPIL or other PDKB and the return to original PDKB, Value Added Tax and Sales Tax on Luxury Goods shall not be collected;
• i. on the import of BKC from DPIL to PDKB for further processing, excise shall be exempted;
• j. delivery of goods resulting from processing of producers using facilities of Import Relief for Export Purpose from DPIL for further processing by PDKB shall be given the same tax treatment as the treatment of exported goods;
• k. release of goods from KB destined to people obtaining facilities of exemption or postponement of import duty, excise and tax in the framework of import shall be exempted from import duty, excise and not subjected to Value Added Tax, Sales Tax on Luxury Goods and Income Tax-article 22 on the import;
• l. on the import of packing materials from DPIL to KB for becoming one integrated unit with goods resulting from processing of PDKB, Value Added Tax and Sales Tax on Luxury Goods shall not be collected."

Article 2

The regulation shall come into force as from the date of stipulation.

For public cognizance, the regulation shall be announced by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On December 20, 2004

THE MINISTER OF FINANCE,
sgd
JUSUF ANWAR