DECREE OF THE MINISTER OF INDUSTRY AND TRADE
NO. 558/MPP/KEP/12/1998

CONCERNING
GNERAL PROVISIONS IN THE EXPORT SECTOR

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

a. that within the framework of implementing national economic reforms and enhancing competitiveness, promoting exports, as well as guaranteeing the certainty and continuity of raw materials for small-scale and medium-scale industries, it is deemed necessary to improve general provisions in the export sector, by changing the status of certain types of goods which originally belonged to the categories of goods under export prohibition and for free export into those which belong to the category of goods under export control, and changing the status of certain types of goods which originally belonged to the category of goods under export control into those which belong to the categories of goods under export prohibition and for free export;
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 No. 75/1995, 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 No. 1/1982, Supplement to Statute Book No. 3210) as already amended by Government Regulation No. 24/1985 (Statute Book of No. 33/1985, 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 No. 28/1994, Supplement to Statute Book No. 3552;
5. Government Regulation No. 33/1996 on goods storage places (Statute Book of No. 50/1996, Supplement to Statute Book No. 3638) as already amended by Government Regulation No.43/1997 (Statute Book of No. 90/1997, Supplement to Statute Book No. 3717);
6. Presidential Decree No. 260/1967 on the definition of tasks and responsibilities of the Minister of Trade in the foreign trade sector;
7. Presidential Decree No. 44/1974 on the organizational principles of ministries;
8. Presidential Decree No. 61/1998 on status, tasks, organizational structures and working procedures of ministries as already several times amended, the latest by Presidential Decree No. 142/1998;
9. Presidential Decree No. 122/M/1998 on the establishment of the Reforms Cabinet;
10. The Decree of the Minister of Trade No. 225/Kp/X/1995 and No. 317/MPP/Kep/9/1997 on the release of goods abroad beyond the general provisions in the export sector;
11. The Decree of the Minister of Trade No. 408/MPP/Kep/10/97 on the provisions and procedure for the granting of trade registration certificates (TDUP) and trade licenses (SIUP);
12. The Decree of the Minister of Industry and Trade No. 12/MPP/Kep/1/1998 on the implementation of corporate registration;
13. The Decree of the Minister of Industry and Trade No. 444/MPP/SK/9/1998 and No. 92/MPP/Kep/4/1996 on the organization and operational procedure of the Ministry of Industry and Trade.

DECIDES:

To revoke:

1. The Decree of the Minister of Industry and Trade No. 182/MPP/Kep/4/1998 on general provisions in the export sector;
2. The Decree of the Minister of Industry and Trade No. 442/MPP/Kep/9/1998 on amendment of the attachment to the Decree of the Minister of Industry and Trade No. 182/MPP/Kep/4/1998 on general provisions in the export sector;
3. The Decree of the Minister of Industry and Trade No. 350/MPP/Kep/7/1998 on export restrictions on certain government subsidized goods;
4. The Decree of the Minister of Industry and Trade No. 438/MPP/Kep/9/1998 on amendment of the Decree of the Minister of Industry and Trade No. 350/MPP/Kep/7/1998 on export restrictions on certain government subsidized goods.

To stipulate:

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

Article 1

Hereinafter referred to as:

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/regulation 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 prohibition/bans shall be goods whose export is prohibited;
h. Goods for free export shall be goods which are not subject to the provisions in clause e, f and g;
i. Bonded storage places shall be buildings, sites or zones fulfilling certain requirements in customs areas which are used for storing, processing, displaying and/or supplying goods for sales by receiving special treatment in terms of customs, excise and taxation, and can take the form of bonded zones, entrepots for display or duty-free shops.

Article 2

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

a. the trade registration certificate (TDUP)/the trade license (SIUP); and
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) and obtain export approval from the Minister of Industry and Trade, in this case the Director of Export of Industrial and Mining Products or the Director of Export of Agricultural and Chemical Products, by considering the proposals of relevant technical Directors within the Ministry of Industry and Trade, and/or other relevant agencies or 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, except certain types of goods for which payments can only be made with sight L/C.

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 released from bonded storage places for the purpose of export shall be subject to general provisions in the export sector.

Article 6

Goods subject to the export trade system and export control shall be excepted from the provisions stipulated in 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 joint the Decree of the Minister of Industry and Trade No. 317/MPP/Kep/9/1997.

Article 7

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

Article 8

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 9

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

Article 10

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

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 December 4, 1998
THE MINISTER OF INDUSTRY AND TRADE,
sgd.
RAHARDI RAMELAN

DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 558/MPP/KEP/12/1998

CONCERNING GNERAL PROVISIONS IN THE EXPORT SECTOR