REGULATION OF THE MINISTER OF FINANCE
No. 20/PMK.010/2005

CONCERNING
THE EXEMPTION FROM IMPORT DUTY AND UNCOLLECTED IMPORT TAXES ON THE IMPORT OF GOODS BASED ON PRODUCTION-SHARING CONTRACT OF PETROLEUM AND NATURAL GAS

THE MINISTER OF FINANCE,

Considering :

• a. that Law No. 8/1981 on state-owned petroleum and natural gas mining company has been revoked and replaced by Law No. 22/2001 on petroleum and natural gas;
• b. that pursuant to Article 63 of Law No. 22/2001 on petroleum and natural gas, production sharing contracts signed before the date of promulgation of Law No. 22/2001 remain valid until the contracts expire;
• c. that the production sharing contracts stipulate that the expenses on import duty and import taxes related to the import of goods on the basis of production sharing contracts are borne by the government;
• d. that based on the considerations as meant in letters a, b and c, it is necessary to stipulate a regulation of the Minister of Finance on the exemption from import duty and uncollected import tax on the import of goods in the framework of production sharing contracts of petroleum and natural gas;

In view of :

• 1. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 2. Law No. 22/2001 on petroleum and natural gas (Statute Book of 2001 No. 136, Supplement to Statute Book No. 4152);
• 3. Presidential Decree Nn 187/M/2004;
• 4. Decree of the Minister of Finance No. 547/KMK.01/ 2003 on stipulation of tariffs of import duty on imported goods;

DECIDES :

To stipulate :

THE REGULATION OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM IMPORT DUTY AND UNCOLLECTED IMPORT TAXES ON THE IMPORT OF GOODS BASED ON PRODUCTION-SHARING CONTRACT OF PETROLEUM AND NATURAL GAS

Article 1

Referred to in this regulation as:

• 1. Production Sharing Contractor is a contractor signing production-sharing contract with Pertamina before the date of enforcement of Law No. 22/2001 on petroleum and natural gas, which has been transferred to the Executive Board for Upstream Petroleum and Natural Gas Activities (BP MIGAS).
• 2. Import Taxes are Value Added Tax, Sales Tax on luxury Goods and Income Tax-Article 22 on the Import.

Article 2

The import of goods for the need of exploration and exploitation of petroleum and natural gas, which are imported by production sharing contractors of petroleum and natural gas is exempted from import duty and the import taxes are not collected.

Article 3

The facility of exemption from import duty and uncollected import taxes as meant in Article 2 is given until the said production-sharing contract expire.

Article 4

(1) Application for securing the facility of exemption from import duty and uncollected import taxes is submitted by production sharing contractor to the Director General of Customs and Excise.

(2) The application as meant in paragraph (1) is furnished by Goods Import Plan (RIB) to which the facility of exemption from import duty and uncollected import taxes will be requested for 12 (twelve) months at the maximum.

(3) Copy of RIB as meant in paragraph (2) is conveyed to the Director General of Petroleum and Natural Gas and the Head of BP MIGAS.

(4) RIB as meant in paragraph (2) minimally contains the following data:

• a. No. and date of RIB;
• b. Name of Contractor;
• c. Taxpayer Code Number (NPWP);
• d. Address;
• e. Contract Basis;
• f. Contract Area;
• g. Customs and Excise Service Office overseeing the place where the goods are imported;
• h. Tariff Heading;
• i. Description of Goods;
• j. Quantity/Unit of Goods;
• k. Estimated Price/Import Value;
• l. Executive of Contractor.

Article 5

(1) RIB as meant in Article 4 paragraph (2) must be signed by contractor executive/manager/official authorized to sign RIB.

(2) In the interest of supervision over the legitimacy of RIB, contractor is obliged to convey specimen of signature of the contractor executive/manager/official authorized to sign RIB to the Directorate General of Customs and Excise.

(3) RIB only can be changed by the contractor executive/ manager/official authorized to sign RIB as meant in paragraphs (1) and (2) before the issuance of a decision of the Minister of Finance on the granting of facility of exemption from import duty and uncollected import taxes.

Article 6

(1) The Director General of Customs and Excise or the appointed official on behalf of the Minister of Finance issues a decree of the Minister of Finance on the granting of facility of exemption from import duty and uncollected import taxes
on the basis of the application as meant in Article 4 by referring to result of examination of RIB as meant in Article 5 paragraph (2).

(2) The decision on the exemption as meant in paragraph (1) is issued for a period of 12 (twelve) months at the maximum.

Article 7

Contractors are obliged to report the realization of import of the goods securing the exemption from import duty and uncollected import taxes to the Directorate General of Customs and Excise with a copy made available to the Directorate General of Petroleum and Natural Gas and the Head of BP MIGAS not later than 30 (thirty) days after the period as meant in Article 6 paragraph (2) ends.

Article 8

The Director General of Customs and Excise is instructed to implement the provisions in this regulation.

Article 9

With the enforcement of this regulation, the provisions regulated by the Minister of Finance on procedures for importing goods in the framework of production sharing contract before the date of enforcement of Law No. 22/2001, which contravene this regulation, are declared null and void.

Article 10

The regulation comes into force as from March 1, 2005.

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

Stipulated in Jakarta
On March 3, 2005

THE MINISTER OF FINANCE
Sgd
JUSUF ANWAR