REGULATION OF THE MINISTER OF FINANCE
NO. 47/PMK.04/2005

ON
THE SECOND AMENDMENT TO DECREE OF THE MINISTER OF FINANCE NO. 135/KMK.05/2000 ON RELIEF OF IMPORT DUTY ON THE IMPORT OF MACHINES, GOODS AND MATERIALS IN THE FRAMEWORK OF THE DEVELOPMENT/EXPANSION OF INDUSTRY/SERVICE INDUSTRY

THE MINISTER OF FINANCE,

Considering :

• a. that in connection with the enhancement of technical Capability of government institutions to verify the need for machines, goods and materials in the framework of the development of industry and additional need for goods and materials in the framework of expansion of foreign/domestic investment industries/companies;
• b. that data about the import realized by industries/service industries securing the facility of relief of import duty in the framework of investments are badly needed to ascertain the installed capacity of an industry as well as the realization of investments;
• c. that based on the considerations as meant in letters a and b, it is necessary to stipulate a regulation of the Minister of Finance on the Second Amendment to Decree of the Minister of Finance No. 135/KMK.05/ 2000 on relief of import duty on the import of machines, goods and materials in the framework of the development/expansion of industry/service industry;

In view of :

• 1. Law No. 1/1967 on foreign investment (Statute Book of 1967 No. 1, Supplement to Statute Book No. 2818) as already amended by Law No. 11/1970 (Statute Book of 1970 No. 47, Supplement to Statute Book No. 2944);
• 2. Law No. 6/1968 on domestic investment (Statute Book of 1968 No. 33, Supplement to Statute Book No. 2853) as already amended by Law No. 12/1970 (Statute Book of 1970 No. 48, Supplement to Statute Book No. 2945);
• 3. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 4. Presidential decree No. 187/M/2004;
• 5. Decree of the Minister of Finance No. 135/KMK.05/2000 on relief of import duty on the import of machines, goods and materials in the framework of the development/expansion of industry/service industry as already amended by Decree of the Minister of Finance No. 28/KMK.05/2001;

DECIDES:

To stipulate :

THE REGULATION OF THE MINISTER OF FINANCE ON THE SECOND AMENDMENT TO DECREE OF THE MINISTER OF FINANCE NO. 135/KMK.05/2000 ON RELIEF OF IMPORT DUTY ON THE IMPORT OF MACHINES, GOODS AND MATERIALS IN THE FRAMEWORK OF THE DEVELOPMENT/EXPANSION OF INDUSTRY/SERVICE INDUSTRY.

Article I

To amend several provisions in Decree of the Minister of Finance No. 135/KMK.05/2000 on relief of import duty on the import of machines, goods and materials in the framework of the development/expansion of industry/ service industry as already amended by Decree of the Minister of Finance No. 28/KMK.05/2001 as follows:

1. The provision in Article 4 shall be amended so as to read as follows:

"Article 4

(1) The need for machines, goods and materials in the framework of the development of industries and additional need for goods and materials in the framework of the expansion of industries shall be verified by ministries/institutions concerned, namely:

• a. the Investment Coordinating Board, in the case of foreign/domestic investment companies;
• b. the Ministry of Industry or other institutions concerned, in the case of non-foreign/domestic investment companies.

(2) In the framework of the verification as meant in paragraph (1) letter a. the Investment Coordinating Board can ask assistance of technical consultation from the surveyors appointed by the government.

(3) In executing the verification as meant in paragraph (1) letter b, the Ministry of Industry or other institutions concerned can use the surveyors appointed by the government. "

2. The provision in Article 9 shall be amended so as to read as follows:

"Article 9

(1) Applications for securing the facility as meant in Article 8 shall be submitted to:

• a. the Head of the Investment Coordinating Board or the appointed official, in the case of the development of industries in the framework foreign/domestic investments;
• b. the Director General of Customs and Excise p, the appointed official, in the case of the expansion of foreign/domestic investment industries and non-foreign/domestic investment industries as well as the development of non-foreign/domestic investment industries.

(2) In the case of the applications as meant in paragraph (1) fulfilling the requirements, the Head d the Investment Coordinating Board/Director General of Customs and Excise or the appointed official on behalf of the Minister of Finance shall make a decision on relief of import duty, which is accompanied by the list of machines or goods and materials securing the relief of import duty as well as the appointment of unloading port.

(3) Industries/service industries securing the facility of relief of import duty shall:

• a. perform bookkeeping of the import of machines, goods and materials for the need of customs audit;
• b. store and maintain records and bookkeeping in connection with the granting of the facility of relief import for 10 (ten) years at the minimum;
• c. convey report on the realization of the import.

(4) In the framework of realizing the import as meant in paragraph (3) letter c for the purpose of investments, institutions concerned shall use surveyors appointed by the government."

Article II

This regulation shall come into force as from the date of stipulation and be retroactive to January 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 June 17, 2005

THE MINISTER OF FINANCE
Sgd
JUSUF ANWAR