REGULATION OF THE MINISTER OF FINANCE
No. 78/PMK.010/2005

CONCERNING
EXEMPTION OF IMPORT DUTY ON IMPORT OF GOODS FOR OPERATION OF GEOTHERMAL ENERGY BUSINESS BASED ON CONTRACT PRIOR TO THE VALIDITY OF LAW NO. 27/2003 ON GEOTHERMAL ENERGY

THE MINISTER OF FINANCE,

Considering :

• a. that, the provisions ruling about operation of geothermal energy business that have existed prior to the validity of Law No. 27/2003 on Geothermal Energy are ruled by the laws that refer to Law No. 8/1971 on State Petroleum and Natural Gas Mining Companies;
• b. that, pursuant to Article 41 of Law No. 27/2003 on Geothermal Energy, all joint operation contracts for Geothermal Energy Business Operation that have existed prior to the validity of Law No. 27/2003 are declared still valid until expiry of the contracts;
• c. that, in the contract regarding geothermal energy business operation, as meant in paragraph b, it is stated that import duty imposed in relation to import of operational goods shall be borne by the government so that it is deemed necessary to give exemption of import duty on import of the operational goods;
• d. that, based on the considerations, as meant in paragraphs a, b, and c, it is necessary to stipulate Regulation of the Minister of Finance on Exemption of Import Duty on Import of Goods for Geothermal Energy Business Operations based on the Contracts Prior to the Validity of Law No. 27/2003 on Geothermal Energy;

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. 27/2003 on Geothermal Energy (Statute Book of 2003 No. 115, Supplement to Statute Book No. 4327);
• 3. Presidential Decree No. 187/M/2004;
• 4. Decree of the Minister of Finance No. 547/KMK.01/ 2003 an Designation of Tariff of Import Duty on Import Goods;

DECIDES:

To stipulate :

REGULATION OF THE MINISTER OF FINANCE ON EXEMPTION OF IMPORT DUTY ON IMPORT OF GOODS FOR OPERATION OF GEOTHERMAL ENERGY BUSINESS BASED ON CONTRACT PRIOR TO THE VALIDITY OF LAW NO. 27/2003 ON GEOTHERMAL ENERGY.

Article 1

Hereinafter referred to as:

• 1. Geothermal Energy Business Operation is a series of operations in the field of geothermal energy resources consisting of exploration, exploitation, and electricity generation implemented by Joint Operations Contract Contractor (KOB Contractor) based on a joint operation contract signed prior to the validity of Law No. 27/2003 on Geothermal Energy.
• 2. Joint Operation Contract Contractor (KOB Contractor) is the contractor signing Joint Operation Contract with PERTAMINA prior to the validity of, Law No. 27/2003 on Geothermal Energy, which contract contains clauses on exemption of import duty.

Article 2

Import of goods for purpose of geothermal energy business operations shall be given exemption of import duty.

Article 3

The exemption of import duty, as meant in Article 2, shall be given to Joint Operation Contract Contractor up to the expiry of the Joint Operation Contract.

Article 4

(1) Request for exemption of import duty shall be submitted by the company, as meant in Article 1 paragraph 2, to the Director General of Customs and Excise.

(2) The request, as meant in paragraph (1), shall be completed with Import Schedule (RIB) that will be requested for exemption of import duty for a term of not later than 12 (twelve) months.

(3) Duplicate of RIB, as meant in paragraph (2), shall be submitted to the Director General for Mineral, Coal, and Geothermal Energy of the Department of Energy and Mineral Resources.

(4) RIB, as meant in paragraph (2), shall at least contain the following data:

• a. Number and date of RIB;
• b. Name of company;
• c. Taxpayer's Identification Number (NPWP);
• d. Address;
• e. Contract;
• f. Contract area;
• g. Customs and Excise Service Office where goods are introduced;
• h. Harmonized Schedule;
• i. Description of goods:
• j. Quantity and unit of goods;
• k. Estimated price/import value;
• l. Directors of the company.

Article 5

(1) RIB, as meant in Article 4 paragraph (2), must be signed by the directors/managers/officers of the company authorized to sign RIB.

(2) For the purposes of monitoring of the validity of RIB, the company, as meant in Article 1 paragraph 2, must submit specimen of signature of directors/manager/ officers of the company authorized to sign RIB, to the Directorate General of Customs and Excise.

(3) RIB may only be amended by the directors/managers/officers of the company authorized to sign RIB, as meant in paragraph (1), prior to issuance of Decree of the Minister of Finance on Giving of Exemption of Import Duty.

Article 6

(1) The Director General of Customs and Excise or the officer appointed on behalf of the Minister of Finance shall issue a Decree of the Minister of Finance on Giving of Exemption of Import Duty to the request, as meant in Article 4, based on result of inspection of RIB, as meant in Article 5 paragraph (2).

(2) The decree on the giving of exemption of import duty, as meant in paragraph (1), shall be valid for a term of not later than 12 (twelve) months.

Article 7

The company, as meant in Article 1 paragraph 2, must report realization of import of goods that obtain exemption of import duty to the Directorate General of Customs and Excise with a copy to the Directorate General of Mineral, Coal, and Geothermal Energy of the Department of Energy and Mineral Resources not later than 30 (thirty) days after the end of the period, as meant m Article 6 paragraph (2).

Article 8

The Director General of Customs and Excise shall be instructed to enforce the provisions of this Regulation.

Article 9

When this Regulation starts to be valid, the regulations stipulated by the Minister of Finance on procedure of import of goods in the framework of geothermal energy business operations prior to the validity of Law No. 27/2003, which are in contradiction with this Regulation, shall be declared invalid.

Article 10

This Regulation starts to be valid from the date it is stipulated.

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

Stipulated in Jakarta
On September 6, 2005

THE MINISTER OF FINANCE
Sgd
JUSUF ANWAR