REGULATION OF THE MINISTRY OF FINANCE
NO. 101/PMK.04/2005

CONCERNING
SEVENTH AMENDMENT OF THE REGULATION OF THE MINISTRY OF FINANCE
NO. 291/KMK.05/1997 concerning Bonded Zone

THE MINISTER OF FINANCE,

Considering:

• a. that in order to create a conducive atmosphere in the industrial / business sectors supporting industries, especially mining, oil and gas, and PDKB engaged in oil and gas industry, shipping and domestic oleochemical industry and to support investment climate that is consistent and it is deemed legal berkepastian need to re-regulate the rules of the bonded area with more flexible rules;
• b. BTBMI that there are several products in finished goods the entry of lower tariffs than the rates of import duty whereas its raw materials in the bonded area one of the provisions provided for ease of sales to DPIL is to use the tariff duty for raw materials, so it is deemed necessary to provide choice to bonded area employers in determining the method of calculating a lower import duty according to the philosophy of providing convenience to entrepreneurs bonded area;
• c. that with the termination provisions that allow PDKB to receive subcontract work from DPIL and for the sake of legal certainty for trying it is deemed necessary to re-regulate the provisions regarding acceptance of the subcontract work which is expected DPIL more giving opportunities to the industry in DPIL to participate or cooperate with PDKB;
• d. that based on the considerations referred to in letter a, b, and c is necessary to stipulate Regulation of the Minister of Finance of the Seventh Amendment To The Minister of Finance Decree No. 291/KMK.05/1997 about Bonded.

In view of:

• 1. Law Number 6 Year 1983 concerning General Provisions and Tax Procedures (State Gazette of the Republic of Indonesia Year 1983 Number 49, Supplementary State Gazette of the Republic of Indonesia Number 3262) as amended tereakhir by Act No. 16 of 2000 (State Gazette of the Republic of Indonesia Year 2000 No. 126, Gazette of the Republic of Indonesia Number 3984);
• 2. Law Number 7 Year 1983 on Income Tax (State Gazette of the Republic of Indonesia Year 1983 Number 50, Supplementary State Gazette of the Republic of Indonesia Number 3263) as amended by Act No. 17 of 2000 (State Gazette of the Republic of Indonesia Year 2000 Number 127, Gazette of the Republic of Indonesia Number 3985);
• 3. Law Number 8 Year 1983 regarding Value Added Tax and Goods and Services Sales Tax on Luxury Goods (State Gazette of the Republic of Indonesia Year 1983 Number 51, Supplementary State Gazette of the Republic of Indonesia Number 3264) as amended by Act No. 18 Year 2000 (State Gazette of the Republic of Indonesia Year 2000 Number 128, Supplementary State Gazette of the Republic of Indonesia Number 3986);
• 4. Law Number 10 Year 1995 on Customs (State Gazette of the Republic of Indonesia Year 1995 Number 75, Supplementary State Gazette of the Republic of Indonesia Number 3612);
• 5. Act No. 11 of 1995 on Excise (State Gazette of the Republic of Indonesia Year 1995 Number 76, Supplementary State Gazette of the Republic of Indonesia Number 3613);
• 6. Government Regulation Number 33 Year 1996 concerning Bonded Hoarding (State Gazette of the Republic of Indonesia Year 1996 Number 50, Supplementary State Gazette of the Republic of Indonesia Number 3638) as amended by Government Regulation Number 43 Year 1997 (State Gazette of the Republic of Indonesia Year 1997 Number 90, Supplement Republic of Indonesia Number 3717);
• 7. Indonesian Government Regulation Number 63 Year 2003 About the Treatment of Value Added Tax and Sales Tax on Luxury Goods in Bonded Area (Bonded Zone) Batam Island Industrial Area (State Gazette of the Republic of Indonesia Year 2003 Number 158, Additional State Gazette of the Republic of Indonesia Number 4061) as amended by the Indonesian Government Regulation Number 30 Year 2005 (State Gazette of the Republic of Indonesia Year 2005 Number 63, Supplementary State Gazette of the Republic of Indonesia Number 4514);
• 8. Presidential Decree No. 187 / M Year 2004;
• 9. Minister of Finance Decree No. 291/KMK.05/1997 about Bonded as several times amended the latest by Regulation of the Minister of Finance Number 587/PMK.04/2004;
• 10. Minister of Finance Decree No. Treatment 583/KMK.04/2003 on Implementation of Value Added Tax and Sales Tax on Luxury Goods in Bonded (Bonded Zone) Batam Island Industrial Area;
• 11. Minister of Finance Decree No. 584/KMK.04/2003 on Importation Of Goods Into Foreign Customs Bonded Areas (Bonded Zone) Batam Island Industrial Area, as amended by Regulation of the Minister of Finance Number 16/PMK.03/2005.

DECIDED :

To stipulate:

FINANCIAL MINISTER OF REGULATION CHANGES ON THE SEVENTH DECISION ABOUT THE MINISTER OF FINANCE NUMBER 291/KMK.05/1997 CONCERNING BONDED AREA.

Article 1

Minister of Finance Decree No. 291/KMK.05/1997 about who has several times amended by Decree of the Minister of Finance:

• a. Number 547/KMK.01/1997;
• b. Number 292/KMK.01/1998;
• c. Number 349/KMK.01/1999;
• d. Number 94/KMK.05/2000;
• e. Number 37/KMK.02/2002;
• f. Number 587/PMK.04/2004,

Amended as follows:

1. The provisions of Article 10 paragraph (7) is changed so that Article 10 reads as follows:

"Article 10

(1) expenditures resulting from the processing can be done with the aim PDKB:

• a. Exports;
• b. Other family planning;
• c. PDKB in one KB;
• d. Entrepot Destination Exhibition (ETP); or e. DPIL

(2) expenditures as referred to in paragraph (1) letter a is done by using the notification by using the Export Notification (PEB) / Specific Export Declarations (PEBT) (Form BC 3.0/BC3.1) and Form BC 2.3 and enacted provisions customs procedure in the field of export.

(3) Expenditure of origin of imported goods are not processed in KB and will be re-exported using PEBT and Form BC 2.3.

(4) expenditures in processing results from KB to KB others to be processed further by using the form attached with BC 2.3 forms the purchase contract.

(5) expenditures in the processing of PDKB PDKB to another in a single family planning for further processing or for packaging products, is done by using the form attached with BC 2.3 forms the purchase contract.

(6) expenditures resulting from the processing of PDKB to ETP, carried out using BC 2.3.

(7) Expenditure items that have been processed by PDKB DPIL purpose, can be done using lmport (PIB/ BC 2.0 /BC 2.5) in accordance with the import customs procedure with the following conditions:

• a. DPIL expenditures to be given in the amount of:
• a.1. as much as 50% of the total production value of the current year, for goods that do not require further processing and can function alone without the help of other goods and dugunakan by the final consumer;
• a.2. as much as 60% of the total production value of the current year, for goods other than as referred to in letter a.1.;
• b. DPIL expenditures to as much as 75% of the total production value of the current year, especially given the PDKB that their products are used to supply the mining companies, oil and gas, and PDKB engaged in oil and gas industry, shipping and domesti c oleochemical industry.
• c. Difference in value of production of goods such as grains issued a and b are removed for export, processed further into companies that use the facility Ease of Import Export Destination (Kite), and / or to the PKB / other PDKB or destroyed under the supervision of Excise.
• d. Violation of the provisions in point a and b, shall be sanctioned:
• 1) reduction in the number of percentage of sales to DPIL for the period the following year;
• 2) repeal PDKB white list and / or can not apply for approval of a white list for one year; and / or
• 3) freezing PDKB permission on the recommendation of the Head Office which oversees PDKB concerned.

(8), expenditures referred to in paragraph (2), (3), (4), (5), and (6) does not do a physical examination results unless there is intelligence about the presence of violation of customs regulations stated in a written warrant from the Director General. "

2. Between Article 11 and Article 12 inserted 1 (a) of Article ie Article 11A which reads as follows:

"Article 11A

(1) Employers in Bonded can receive subcontract work from DPIL.

(2) To be able to perform subcontracting work as referred to in paragraph (1) must get approval from the Head Office of Customs and Excise. "

3. The provisions of Article 14 letter a modified so that Article 14 reads as follows:

"Article 14

Against imports of goods, the income taxable goods (BKP), delivery of production, expenditures, delivery of re-BKP, rental machines, income Taxable Goods Excise (BKC) to and / or from the Bonded Area (KB) provided the following facilities:

• a. on the import of capital goods or equipment and office equipment solely used by the PSA, including PSA doubling as PDKB granted deferral BM, free of VAT, Sales Tax and Income Tax Article 22 imports;
• b. on the import of capital goods and equipment are directly related to production activities PDKB used exclusively in BM PDKB granted deferral, not levied VAT, Sales Tax and Income Tax Article 22 imports;
• c. on the import of goods and / or materials to be processed in PDKB given BM deferral, exemption of Customs, are not levied VAT, Sales Tax and Income Tax Article 22 imports;
• d. the revenue from the Customs Area Indonesia BKP Other (DPIL) to PDKB to be processed further, VAT and luxury sales tax is not collected;
• e. upon delivery of the goods produced PDKB to other PDKB to be processed further, VAT and luxury sales tax is not collected;
• f. for expenditures for goods and / or materials from PDKB to industrial companies in DPIL or other PDKB in order to subcontract, is free of VAT and luxury sales tax;
• g. on the transfer back BKP subcontract work by PKP at DPIL or other PDKB to PKP PDKB origin, are free of VAT and luxury sales tax;
• h. the rental of machinery and / or manufacturing equipment in order to subcontract to companies from industries in PDKB DPIL or other PDKB PDKB and return to the origin, are free of VAT and luxury sales tax;
• i. upon entry to the BKC from DPIL PDKB to be processed further, given excise exemption;
• j. producers of refined delivery facility users Ease of Import Export Destination DPIL for PDKB further processed by the same taxation treatment given to their treatment of goods exported;
• k. of family planning expenditures are directed to the person who obtained the exemption or deferral facility BM, Excise and Taxation in order to import, import duty exemption granted, the exemption of Customs, are not levied VAT, Sales Tax and Income Tax Article 22 Import;
• l. the inclusion of packaging equipment (packing material), and packaging tools from DPIL to KB to be a single entity with PDKB processed goods, free of VAT and luxury sales tax. "

4. The provisions of Article 17 paragraph (2) are amended so that Article 17 reads as follows:

"Article 17

(1) The expenditures that have been processed by PDKB DPIL subjected to BM, Excise, VAT, the Sales Tax and Income Tax Article 22 Import all of the expenditure is not addressed to the party who obtained exemptions or deferral of import duty, excise duty and import taxes in order.

(2) The basis for calculating charges state expenditures referred to in paragraph (1) are as follows:

• a. BM accordance with the loading rates of raw materials and foreign exchange rates prevailing at the time PDKB and removed from the customs value of imported raw materials during the PDKB;
• b. If the loading rate of BM to higher raw material from the imposition of import duty for goods processed, BM BM is based on loading rates of refined goods prevailing at the time excluded from PDKB;
• c. Excise under the provisions of customs legislation in force;
• d. VAT, Sales Tax and Income Tax Article 22 under the provisions of tax legislation and regulations.

(3) Examination conducted by the Customs in the Family Planning Directorate General of Customs and Excise. "

5. Between Article 23 and Article 24 inserted 1 (a) of Article ie Article 23A which reads as follows:

"Article 23A

(1) The capital goods imported plant and equipment owned by PKB and / or PDKB, upon expiration of a period of 2 (two) years since entered into a bonded kewasan transferable to the Indonesian Customs Other Areas with no obligation to pay import duty.

(2) the alienation of capital goods and equipment referred to in paragraph (a) prior to a period of 2 (two) years since entered into a bonded area, subject to:

• a. customs duty based on the value of capital goods and equipment at the time included Bonded; and
• b. interest at 2% (two percent) per month from customs duties which should be paid, calculated from the month submitted a request from the bonded area of expenditure up to an even 2 (two) years since entered into a bonded area;

(3) Section of the month referred to in paragraph (2) letter b counted as one full month. "

Article II

(1) Problems that arise relating to tariffs, charges and percentage of sales of goods produced PDKB to PDIL referred to in Article 17 paragraph (2) Ministry of Finance Decree No. 291/KMK.05/1997, which is the result of inspection or verification audit, which has not been completed at the time of entry into force of this Regulation of the Minister of Finance, the Minister of Finance concluded based on this.

(2) Regulation of the Minister of Finance is valid since the date specified.

Cognizance, ordered the Ministry of Finance announcement of this by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On October 19, 2005

MINISTER OF FINANCE,
Sig,
Jusuf Anwar

Accordance with the original copies;
Head of General Affairs
u.b.
Head of Section T.U. Department
Koemoro Warsito, S.H., M. Kn
NIP 06004189