REGULATION OF THE MINISTER OF FINANCE
NO. 27/PMK.04/2006

ON
PROCEDURES FOR GRANTING INTEREST COMPENSATION IN THE CUSTOMS AND EXCISE FIELD

THE MINISTER OF FINANCE,

Considering :

• a. that in the framework of implementing the provisions in Article 38 paragraph (1), Article 93 paragraph (5), Article 94 paragraph (5) of Law No. 10/1995 on Customs, Article 12 paragraph (3), Article 41 paragraph (6) of Law No. 11/1995 on Excise and Article 87 of Law No. 14/2002 on Tax Tribunal, it is deemed necessary to regulate procedures for granting interest compensation in the customs and excise field;
• b. that following the stipulation of Law No. 17/2003 on State Finance and Law No. 1/2004 on State Treasury, procedures for granting interest compensation in the customs and excise field as regulated in Decree of the Minister of Finance No. 469/KMK.04/2002 need improvement;
• 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 Procedures for Granting Interest Compensation in the Customs and Excise Field;

In view of :

• 1. Law No. 10/1995 on Customs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 2. Law No. 11/1995 on Excise (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• 3. Law No. 14/2002 on Tax Tribunal (Statute Book of 2002 No. 27, Supplement to Statute Book No. 4189);
• 4. Law No. 17/2003 on State Finance (Statute Book of 2003 No. 47, Supplement to Statute Book No. 4286);
• 5. Law No. 1/2004 on State Treasury (Statute Book of 2004 No. 5, Supplement to Statute Book No. 4355);
• 6. Presidential Decree No. 42/2002 on Guidelines on Realization of the State Budget of Revenue and Expenditure (Statute Book of 2002 No. 73, Supplement to Statute Book No. 4214) as already amended by Presidential Decree No. 72/2004 (Statute Book of 2004 No. 92, Supplement to Statute Book No. 4418);
• 7. Presidential Decree No. 20/P/2005;
• 8. Decree of the Minister of Finance No. 380/KMK.05/1999 on Procedures for Submitting Customs and Excise Objections;
• 9. Decree of the Minister of Finance No. 302/KMK.01/2004 on the Organization and Working Arrangement of the Ministry of Finance as already amended by Decree of the Minister of Finance No. 426/KMK.01/2004;
• 10. Regulation of the Minister of Finance No. 37/PMK.04/2005 on Procedures for Restitution of Import Duty and/or Excise already paid in the framework of import relief for export purpose;
• 11. Regulation of the Minister of Finance No. 38/PMK.04/2005 on Procedures for Restitution of Import Duty Administrative Fine and/or Interest;
• 12. Regulation of the Minister of Finance No. 134/PMK.06/2005 on Guidelines on the Payment in the Realization of the State Budget of Revenue and Expenditure;
• 13. Regulation of the Minister of Finance No. 26/PMK.04/2006 on Procedures for Restitution of Excise and/or Administrative Fine;

DECIDES:

To stipulate :

THE REGULATION OF THE MINISTER OF FINANCE ON PROCEDURES FOR GRANTING INTEREST COMPENSATION IN THE CUSTOMS AND EXCISE FIELD

CHAPTER I
GENERAL PROVISIN

Article 1

Referred to in this regulation as:

• 1. Parties righteous to receive interest compensation, hereinafter called the righteous parties shall be individuals or statutory bodies whose identities are mentioned in SKPBM, SKPFP BM-C, SKPC or Cash Guarantee Receipt Form.
• 2. Decision on Granting of Interest Compensation (SKPIB) shall be a decision stipulating the amount of interest compensation given by the government to the righteous parties.
• 3. Order To Pay Interest Compensation (SPMIB) shall be a letter issued by Head of Customs and Excise Service Office or official of the Directorate General of Customs and Excise on behalf of the Minister of Finance, to pay interest compensation to the righteous parties, as the basis for the issuance of Order to Disburse Fund.
• 4. Decision on Restitution of Import Duty (SKPBM) shall be a decision issued by Head of Customs and Excise Service Office on behalf of the Minister of Finance on Restitution of Import Duty, Administrative Fine and/or Interest.
• 5. Order To Repay Import Duty (SPMKBM) shall be a letter issued by Head of Customs and Excise Service Office on behalf of the Minister of Finance on restitution of import duty, administrative fine and/or interest as the basis for issuing Order to Disburse Fund.
• 6. Decision on Payment of Facility of Restitution of Import Duty and/or Excise (SKPGP BM-C) shall be a decision on restitution of import duty and/or excise already paid on the import of goods and/or materials to be processed, assembled or installed at other goods already exported or given up to the Bonded Zone, which mentions identity of company (Taxpayer code number, address, corporate identifier), amount of money, name of bank, no of account of recipient of restitution and is signed by Head of Regional Offices of the Directorate General of Customs and Excise on behalf of the Minister of Finance.
• 7. Order to Repay Import Duty and/or Excise (SPMK) shall be an order to pay restitution of import duty and/or excise signed by Head of the Customs and Excise Division on behalf of the Minister of Finance in Regional Office of the Directorate General of Customs and Excise.
• 8. Decision on Restitution of Excise (SKPC) shall be a decision issued by Head of Customs and Excise Service Office on behalf of the Minister of Finance on Restitution of Excise and/or Administrative Fine.
• 9. Order to Repay Excise (SPMKC) shall be a letter issued by Head of Customs and Excise Service Office on behalf of the Minister of Finance to pay restitution of excise and/or administrative fine.
• 10. Order to Disburse Fund (SP2D) shall be a letter issued by State Treasury Service Office as Proxy of the State General Treasurer to realize expenditure at expense of APBN on the basis of Order to Pay.
• 11. State Treasury Service Office (KPPN) shall be vertical institution of the Directorate General of Treasury Affairs, subordinate and responsible directly to the Head of Regional Office of the Directorate General of Treasury Affairs.
• 12. Operational Bank I shall be a bank appointed by the Director General of Treasury Affairs to manage revenue and expenditure charging the Account of the State General Cash.
• 13. Official shall be employee of the Directorate General of Customs and Excise appointed -in certain position to execute certain tasks.

CHAPTER II
PROCEDURES FOR GRANTING INTEREST COMPENSATION

Article 2

The interest compensation shall be given to the righteous parties in the case of:

• 1. SPMK SPMKBM or delay the issuance of more than 30 (thirty) days from the issuance SKPBM or SKPFP BM-C;
• 2. SPMKC which delays the issuance of more than 30 (thirty) days from the issuance SKPC;
• 3. Tax Court decision that set the reward interest on refunds of import duty, excise, Administrative Fines and/or interest is calculated from the date of payment until the date of issuance of the decision of the appeal;
• 4. delay the return of cash collateral for more than 60 (sixty) days after the objection as referred to in Article 93 paragraph (5) and Article 94 paragraph (5) of Law No. 10/1995 on Customs; or
• 5. delay the return of cash collateral for more than 60 (sixty) days after the objection as referred to in Article 41 paragraph (6) of Act No. 11/1995 on Excise.

Article 3

(1) The amount of the interest compensation as meant in Article 2 shall be set at 2% (two percents) every month, counted from the amount of value mentioned in SKPBM, SKPFP BM-C, SKPC or the amount of the returned cash guarantee.

(2) The interest compensation shall be given for 24 (twenty four) months at the maximum and part of month shall be rounded up to one month.

Article 4

(1) Officials issuing SPMKBM, SPMK, SPMKC or Guarantee Receipt Form shall examine the truth of interest compensation, which can be given to the righteous parties by observing the provisions as meant in Article 2.

(2) In the event that the righteous parties can be given interest compensation as meant in Article 3, the officials issuing SPMKBM, SPMK, SPMKC or Guarantee Receipt Form shall issue Note of Calculation of the Granting of Interest Compensation (NPPIB) as stipulated in Attachment I to this regulation.

Article 5

(1) Based on NPPIB as meant in Article 4 paragraph (2), Heads of Customs and Excise Service Offices or Heads of Regional Offices of the Directorate General of Customs and Excise in the case related to facility of Import Relief for Export Purpose (KITE) shall issue SKPIB on behalf of the Minister of Finance.

(2) Model of SKPIB as meant in paragraph (1) shall be as stipulated in Attachment II to this regulation.

(3) SKPIB as meant in paragraph (1) shall be made in quadruple with the designation as follows:

• a. the first sheet to the righteous party;
• b. the second sheet to the Director General of Customs and Excise;
• c. the third sheet to KPPN; and
• d. the fourth sheet to Office of the Directorate General of Customs and Excise issuing.

Article 6

(1) Based on SKPIB as meant in Article 5 paragraph (1), Heads of Customs and Excise Service Offices or the appointed official within Regional Office of Customs and Excise on behalf of the Minister shall issue SPMIB.

(2) Model of SPMIB as meant in paragraph (1) shall be as stipulated in Attachment III to this regulation.

(3) SPMIB as meant in paragraph (1) shall be made in quadruple with the designation as follows:

• a. the first and second sheets to KPPN;
• b. the third sheet to the righteous party;
• c. the fourth sheet to file of Customs and Excise Service Office issuing SPMIB.

(4) SPMIB as meant in paragraph (1) shall be conveyed directly by the appointed officer to KPPN.

Article 7

The interest compensation shall be paid by means of book transfer to the account of the righteous party and cash payment shall be forbidden.

Article 8

Specimens of signatures of officials signing SKPIB and SPMIB shall be made every year or upon the replacement of signing officials for conveyance to KPPN.

Article 9

(1) Based on SPMIB as meant in Article 6, KPPN shall issue SP2D.

(2) SP2D as meant in paragraph (1) shall be made in triplicate with the designation as follows:

• a. the first sheet to Operational Bank I;
• b. the second sheet to official issuing SPMIB; and
• c. the third sheet to KPPN.

(4) KPPN shall issue SP2S in not later than two working days as from the date of complete and true SPMIB.
KPPN shall return the second sheet of SPMIB and the second sheet of SP2D to the issuer of SPMIB after being given seal "SP2D has been issued on date.............................. No ..................".

(5) SP2D as meant in paragraph (1) shall be conveyed directly by the appointed officer to Operational Bank I.

CHAPTER III
CONCLUSION

Article 10

(1) SPMIB as meant in Article 6 only shall be valid in one fiscal year.

(2) SPMIB having SP2D not yet issued up to the end of fiscal year shall be nullified by account and alternate SPMIB is later made.

(3) SPMIB shall be charged with the Expenditure Budgetary Item (MAK) as stipulated in Regulation of the Minister of Finance No. 13/PMK.06/2005 on Standard Estimate Chart.

Article 11

Officials late in the issuance of SPMKBM, SPMK, SPMKC and/or returning cash guarantee as meant in Article 2 and the lateness is attributable their negligence shall be subjected to personnel sanction in accordance with the provisions in force.

Article 12

Further provisions needed in the framework of implementing this regulation shall be regulated by the Director General of Customs and Excise and Director General of Treasury Affairs jointly or individually in accordance with their respective tasks and scopes of authority.

Article 13

With the enforcement of this regulation, Decree of the Minister of Finance No. 469/KMK.04/2002 on Procedures for Granting Interest Compensation in the Customs and Excise Field shall be declared null and void.

Article 14

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 March 23, 2006

THE MINISTER OF FINANCE
Sgd
SRI MULYANI INDRAWATI