DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No. 113/MPP/Kep/4/1997

ON
EXEMPTION OF GOODS FROM IMPORT REGULATIONS
WITHIN THE FRAMEWORK OF DEVELOPING RIAU PROVINCE

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

• a. that to implement Presidential Instruction No. 4/1992 dated September 14, 1992 on development policy to support the development of Riau Province, the entry of goods into the zones as meant in Presidential Instruction No. 4/1992 needs to be exempted from import regulations;
• b. that to give effect to the above matter, a decree of the Minister of Industry and Trade needs to be stipulated.

In view of:

• 1. Law No. 10/1961 on goods (Statute Book of 1961 No. 215, Supplement to Statute Book No. 8);
• 2. Law No. 9/1990 on tourism (Statute Book of 1990 No. 78, Supplement to Statute Book No. 3427);
• 3. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612),
• 4. Government Regulation No. 1/1982 on the policies on export, import and foreign exchange flow (Statute Book of 1982 No. 1, Supplement to Statute Book No. 3210), as already amended by Government Regulation No. 24/1985 (Statute Book of 1985 No. 33, Supplement to Statute Book No. 3291);
• 5. Government Regulation No. 30/1995 on the taxation treatment of construction and operational activities for the development of Biratan Island and Karimun Island development project (Statute Book of 1995 No. 52, Supplement to Statute Book No. 3604);
• 6. Presidential Decree No. 32/1993 on the Riau Province Development Coordinating Team, as already amended by Presidential Decree No. 49/1993 and Presidential Decree No. 27/1996;
• 7. Presidential Decree No. 96/M/1993 on the establishment of the sixth development cabinet as already amended the latest by Presidential Decree No. 388/M/1995;
• 8. Presidential Decree No. 2/1996 on the amendment to Presidential Decree No. 15/1984 on the organizational structure of ministry, as already twenty five times amended the latest by Presidential Decree No. 61/1995;
• 9. Decree of the Coordinator Minister for Economy, Finance, Industry and Development Supervision No. Kep.03/M.EKUIN/1993 on the procedure for appointing project contractors within the framework of construction and operational activities for the development of Riau Province Development Project;
• 10. Decree of the Coordinator Minister for Production and Distribution No. 08/Kep/MK.PRODIS/2/1997 on the appointment of operations chief and deputy operations chief of the Riau Province Development Coordinating Team;
• 11. Decree of the Minister of Industry and Trade No. 29/MPP/SK/2/1996 jo. No. 92/MPP/Kep/4/1996 on the organization and working system of the Ministry of Industry;
• 12. Decree of the Minister of Industry and Trade No. 120/MPP/Kep/5/1996 on the entry of goods into the release of goods from bonded zones;
• 13. Decree of the Minister of Industry and Trade No. 125/MPP/Kep/5/1996 on general provisions in the import sector;
• 14. Decree of the Minister of Industry and Trade No. 133/MPP/Kep/6/1996 on goods subject to import regulations.

DECIDES:

To stipulate:

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON THE EXEMPTION OF GOODS FROM IMPORT REGULATIONS WITHIN THE FRAMEWORK OF DEVELOPING RIAU PROVINCE

Article 1

Certain goods from foreign countries which enter certain development zones in Riau Province shall be exempted from the existing import regulations.

Article 2

The certain zones as meant in Article 1 of this decree shall be:

• a. zones that will be developed for tourism businesses including supporting facilities on Bintan Island, covering:
• - tour travel bureau's services;
• - tour travel agent's services;
• - tour guide services;
• - convention, incentive travel and exhibition services;
• - impresarist services;
• - tourism consulting services;
• - tourism information services; and
• - other tourism services according to Law No. 9/1990 on tourism.
• b. industrial zones on Bintan Island;
• c. water spring development zones on Bintan Island;
• d. natural oil storing, distributing and processing service zones and maritime industrial zones and offshore construction zones on Karimun Island and its nearby islands.

Article 3

(1) The certain goods as meant in Article 1 shall be goods or materials needed to carry out construction and operational activities of projects and operational activities of companies within the framework of developing the zones as meant in Article 2, which cover the activities as meant in Attachment I to this decree.

(2) The goods as meant in paragraph (1) can only be imported by companies that have already held:

• a. a latter of appointment from the Riau Province Development Coordinating Team as project contractors,
• b. a commercial permit and other permits issued by other relevant technical agencies;
• c. a company's registration number;
• d. taxpayer code number (NPWP);
• e. importer's identity card (API) /designated importer's identity card (APIT).

(3) The project contractors as meant in paragraph (2) shall include:

• a. Companies that are set up especially to manage the zones as meant in Article 2 and constitute Indonesian-Singaporean joint venture companies based on the cooperation agreement between Indonesia and Singapore, and have the main task of building, managing and operating the said zones;
• b. Foreign/domestic investment companies or non-foreign/domestic investment companies that run businesses in the zone as meant in Article 2;
• c. Contractors that have already obtained working orders from the companies as meant in letters a and b above;

(4) The import of goods as meant in paragraph (1) shall be done by filing an application to the Riau Province Development Coordinating Team as meant in Presidential Decree No. 27/1996, complete with the list and quantity of goods to be imported for a certain period of time;

(5) No later than 10 (ten) working days after the application is received in a complete and right manner, the Operations Coordinator of the Riau Province Development Coordinating Team or the authorized official shall approve the list of goods to be imported or reject it by giving reasons for the rejection.

(6) Copies of the letter of approval of the list of goods to be imported shall be sent to the Director of Import and the Head of the Regional Office of the Ministry of Industry and Trade concerned.

Article 4

(1) The companies that have already received approval to import goods shall send a report on the realization of imports and the use of goods exempted from import regulations, to the Director General of International Trade cq. the Director of Import and the Head of the Regional Office of the Ministry of Industry arid Trade concerned once every three months after the letter of import approval is issued.

(2) The model of the report on the realization of imports and the use of goods shall be as attached (see Attachment II to this decree).

Article 5

The Director General of International Trade cq. the Director of Imports with the help of the Operations Head of the Riau Province Development Coordinating Team and the Head of the Regional Office of the Ministry of Industry and Trade shall conduct a post audit.

Article 6

Goods which are forbidden to be imported shall not enter the zones as meant in Article 2.

Article 7

The import of goods, especially to meet the need of the bonded zones located in the Bintan Industrial estate, and the release of goods to other customs areas shall be done according to the existing provisions applicable to the bonded zones.

Article 8

The exemption of goods or materials from import regulations as meant in Article 3 paragraph (1) shall be valid until December 31, 2003.

Article 9

The goods contained in Attachment I to this decree shall be forbidden to be released from certain development zones in Riau Province as meant in Article 2.

Article 10

(1) The goods as meant in Attachment I to this decree which are in the form of food packed in cardboard containers and alcoholic drinks shall have label attached.

(2) The labels for food as meant in paragraph (1) shall at least bear the following information:

• a. name of product;
• b. a list of materials used for the manufacture of goods;
• c. net weight or content;
• d. name and address of the importer and/or the company realizing import;
• e. halal label;
• f. expired date, month and year.

(3) The labels for alcoholic drinks as meant in paragraph (1) shall at least bear the following information:

• a. name of product;
• b. alcoholic content;
• c. a list of materials used for the manufacture or alcoholic drinks; d. net weight or content;
• e. name and address of the importer or the company realizing import;
• f. expired date, month and year, and
• g. the words "Alcoholic Drink".

(4) The labels as meant in paragraphs (2) and (3) shall use the Indonesian language, Arabic numbers and Roman scripts.

Article 11

The project contractors as meant in Article 3 paragraph (3) that violate provisions of this decree may have their:

• a. a certificate of appointment from the Operations Head of the Riau Province Development;
• b. a commercial permit (SIUP);
• c. Importer's identity card/designated importer's identity card revoked.

Article 12

This decree shall take effect as from the date of stipulation.

Stipulated in Jakarta
On April 22, 1997
THE MINISTER OF INDUSTRY AND TRADE,
sgd.
T. ARIWIBOWO

Attachment