DECREE OF MINISTER OF INDUSTRY AND TRADE
No. 361/MPP/Kep/10/1997

ON
THE APPOINTMENT OF DISTRIBUTORS AND SUB-DISTRIBUTORS OF ALCOHOLIC DRINKS

MINISTER OF INDUSTRY AND TRADE,

Considering:

• a. that as a follow-up to Decrees of the Minister of Industry and Trade No. 359/MPP/Kep/10/1997 dated October 8, 1997 on the supervision and control over the production, imports, distribution and sale of alcoholic drinks and No. 360/MPP/Kep/10/1997 on the procedure for the granting of a trade business license for alcoholic drinks, it is deemed necessary to stipulate distributors and sub-distributors of alcoholic drinks.
• b. that to this end it is necessary to issue Decree of the Minister of industry and Trade.

In view of:

• 1. Presidential Decree No. 2/1996 on the amendment to Presidential Decree No. 15/1984 on the organizational structure of ministries as already amended twenty-five times, the latest by Presidential Decree No. 61/1995;
• 2. Decree of the Minister of Industry and Trade No. 84/MPP/Kep/4/1996 and No. 92/MPP/Kep/4/1996 on the organization and the working system of the ministry of industry and trade;
• 3. Decree of the Minister of Industry and Trade No. 84/MPP/Kep/4/1996 on the organization and the working system of regional offices of the ministry of industry and trade in districts/municipality;
• 4. Decree of the Minister of Industry and Trade No. 359/MPP/Kep/10/1997 on the supervision and control over the production, imports, distribution and sale of alcoholic drinks;
• 5. Decree of the Minister of Industry and Trade No. 360/MPP/Kep/10/1997 on the procedure for the granting of a trade business license for alcoholic drinks.

DECIDES

To stipulate:

DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON THE APPOINTMENT OF DISTRIBUTORS AND SUB-DISTRIBUTORS OF ALCOHOLIC DRINKS

Article 1

Referred to in this decree as:

• 1. An importer of alcoholic drinks shall be an approved importer (IT) owning a general import identification figure (API/U) and obtaining a special license from the minister to import alcoholic drinks;
• 2. An industry of alcoholic drinks shall be an industrial company producing alcoholic drinks domestically;
• 3. A distributor shall be a company appointed by an importer of alcoholic drinks and or an industry of alcoholic drinks to distribute imported or domestically produced alcoholic drinks;
• 4. A sub-distributor shall be a company appointed by the distributor to distribute alcoholic drinks in a particular area;
• 5. A trade business license, abbreviated as SIUP, shall be a license which is needed to carry out trade business activities as meant in Decree of the Minister of Industry and trade No. 1458/Kp/XII/1984 on trade business licenses (SIUPs).
• 6. A trade business license for alcoholic drinks, abbreviated as SIUP MB, shall be a license to be used in carrying out trade business activities specially with respect to alcoholic drinks of B and C categories.

Article 2

(1) The distribution of alcoholic drinks of A, B and C categories by importers of alcoholic drinks and or industries of alcoholic drinks may be undertaken through distributors whose appointment shall compulsorily be conducted in a written agreement.

(2) The distribution of alcoholic drinks of A, B and C categories by distributors may be undertaken through sub-distributors whose appointment shall compulsorily be conducted in a written agreement.

Article 3

It is compulsory that the appointment of distributors and sub-distributors of alcoholic drinks as meant in Article 2 paragraph (1) and paragraph (2) should be reported to the Minister.

Article 4

The distributors s meant in Article 3 must fulfill the following requirements:

• a. in the form of a statutory body, an individual or a partnership owned by Indonesian citizens;
• b. having an SIUP and an SIUP MB in the case of distributors of alcoholic drinks of B and C categories;
• c. owning/controlling a separate warehouse for the storage of alcoholic drinks and owning/controlling a proper means of transportation;
• d. owning a distribution network at least up to the sub-distributor level in their working areas;
• e. already experienced in the area of distribution of alcoholic drinks for at least 2 (two) years;
• f. having a good conduct and assuming a high sense of responsibility and dedication in implementing the provisions on the distribution of alcoholic drinks.

Article 5

Sub-distributors as meant in Article 3 must fulfill the following requirements:

• a. in the form of a statutory body, an individual or a partnership owned by Indonesian citizens;
• b. having an SIUP and an SIPU MB in the case of sub-distributors of alcoholic drinks of B and C categories;
• c. owning/controlling a separate warehouse for the storage of alcoholic drinks, and owning and or controlling a proper means of transportation;
• d. having a distribution network at least up to the retail level in their working areas;
• e. already experienced, having a good conduct and assuming a high sense of responsibility and dedication in implementing the provisions on the distribution of alcoholic drinks.

Article 6

In addition to being obligated to fulfill the requirements as meant in Article 4 and 5, distributors and sub-distributors shall also be obligated to fulfill the following requirements:

• a. being obedient taxpayers, never having tax payment arrears, always regularly sending in the tax return in 2 (two) consecutive years;
• b. never violating customs provisions which inflict losses to the state, among others by conducting fictitious imports, committing smuggling and so forth.
• c. not involved in bad debts;
• d. not included in the black list issued by the ministry of industry and trade.

Article 7

This decree shall take effect 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 October 8, 1997
THE MINISTER OF INDUSTRY AND TRADE,
Sgd
T. ARIWIBOWO