DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No. 228/MPP/Kep/7/1997

ON
GENERAL PROVISIONS IN THE EXPORT SECTOR

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

• a. that within the framework implementing Government Regulation No. 1/1982 and No. 24/1985 and in order to further promote exports and ensure their smooth realization, it is deemed necessary to revise general provisions in the export sector, by changing the status of certain types of goods which originally belonged to the category of goods under export bans into goods under export control;
• b. that for this purpose it is necessary to issue a decree of the Minister of Industry and Trade.

In view of:

• 1. The Trade Ordinance of 1934 (Statute Book of 1938 No. 86) as already amended and supplemented;
• 2. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 3. Government Regulation No. 1/1982 on the realization of exports, imports and the flow of foreign exchange (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. 32, Supplement to Statute Book No. 3291);
• 4. Government Regulation No. 20/1994 on share ownership in companies set up under foreign investments (Statute Book of 1994 No. 28, Supplement to Statute Book No. 3552);
• 5. Presidential Decree No. 260/1967 on the definition of tasks and responsibilities of the Minister of Trade in the foreign trade sector;
• 6. Presidential Decree No. 44/1974 on the organizational principles of ministries;
• 7. Presidential Decree No. 96/M/1993 as already amended by Presidential Decree No. 388/M/1995;
• 8. Presidential Decree No. 2/1996 on the amendment of Presidential Decree No. 15/1984 on the organizational structures of ministries as already twenty-five times amended, the latest by Presidential Decree No. 61/1995;
• 9. The Decree of the Minister of Trade No. 323/Kp/II/84 on the implementation of the obligation of corporate registration, as already amended by the Decree of the Minister of Trade No. 193/Kp/VIII/1990;
• 10. The Decree of the Minister of Trade No. 1458/KP/XII/84 on the trade license (SIUP);
• 11. The Decree of the Minister of Trade No. 225/Kp/X/1995 on the release of goods abroad beyond the general provisions in the export sector;
• 12. The Decree of the Minister of Industry and Trade No. 29/MPP/SK/2/1996 and No. 92/MPP/Kep/4/1996 on the organization and operational procedure of the Ministry of Industry and Trade.

DECIDES:

To stipulate:

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON GENERAL PROVISIONS IN THE EXPORT SECTOR

Article 1

• a. Export(s) shall be the activities of releasing goods from customs areas.
• b. Exporters shall be companies or individuals undertaking export activities.
• c. Approved exporters shall be companies or individuals already recognized by the Minister of Industry and Trade to export certain goods according to the provisions in force.
• d. Customs areas shall be territories of the Republic of Indonesia, covering land, waters and air space above them as well as certain places in exclusive economic zones and continental shelves where Law No. 10/1995 on customs affairs applies.
• e. Goods subject to the export trade system shall be goods whose export can only be realized by approved exporters.
• f. Goods subject to export control shall be goods whose export can only be realized with the approval of the Minister of Industry and Trade or authorized officials.
• g. Goods subject to export bans shall be goods whose export is prohibited.
• h. Goods for free export shall be goods which are not subject to the provisions in points e, f and g.

Article 2

(1) Exports can be realized by companies or individual, which/who have possessed:

a. the trade license (SIUP); or

b. the business license from the technical ministry/non departmental government agency on the basis of the laws in force; and

c. the corporate registration certificate (TDP).

(2) Exporters engaged in the export of goods subject to the export trade system shall fulfill the requirements as meant in paragraph (1) and obtain recognition as approved exporters from the Minister of Industry and Trade, in this case the Director General of International Trade.

(3) Exporters engaged in the export of goods subject to export control shall fulfill the requirements as meant in paragraph (1) of this article and obtain export approval from the Minister of Industry and Trade, in this case the Director General of International Trade, by considering the proposals of relevant technical Directors within the Ministry of Industry and Trade, and/or relevant agencies of other Ministries.

(4) The goods subject to the export trade system, export control and export bans shall be those as contained in the attachment to this decree.

Article 3

Export payments can be made by Letters of Credit (L/C) or by other payment methods normally effective in international trade, according to agreements between sellers and buyers.

Article 4

The Minister of Industry and Trade in this case the Director General of International Trade shall determine export check prices of certain goods periodically as the basis for calculating export tax.

Article 5

Goods as stipulated in the Decree of the Minister of Trade No. 225/KP/X/95 on the release of goods abroad beyond the general provisions in the export sector jo. the Decree of the Minister of Industry and Trade No. 254/MPP/Kep/8/96 shall be excepted from the provisions in this decree.

Article 6

Provisions on the export of goods subject to the export trade system shall be stipulated in a separate decree.

Article 7

The recognition as approved exporters granted before the issuance of this decree shall remain valid as long as the approved exporters continue their business activities.

Article 8

Exporters violating the provisions in this decree shall be liable to sanctions based on the laws in force.

Article 9

The implementation of this decree shall be further stipulated by the Director General of International Trade.

Article 10

With the stipulation of this decree, the Decree of the Minister of Industry and Trade No. 124/MPP/Kep/5/1996 on general provisions in the export sector shall be declared null and void.

Article 11

This decree shall come into force as from the date of stipulation.

For public cognizance, this decree shall be announced by publishing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On July 4, 1997
THE MINISTER OF INDUSTRY AND TRADE,
sgd.
T. ARIWIBOWO