DECREE OF THE MINISTER OF INDUSTRY AND TRADE OF THE REPUBLIC OF INDONESIA
No. 509/MPP/Kep/10/1999

CONCERNING
THE PROVISIONS ON AND PROCEDURE FOR THE GRANTING OF INDUSTRIAL BUSINESS LICENSES, EXPANSION LICENSES AND INDUSTRIAL REGISTRATION CERTIFICATES

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

In view of:

DECIDES

To revoke:

Decree of the Minister of Industry and Trade No. 256/MPP/Kep/7/1997 on the provisions on and procedure for the granting of industrial business licenses, expansion licenses and industrial registration certificates.

To stipulate:

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING THE PROVISIONS ON AND PROCEDURE FOR THE GRANTING OF INDUSTRIAL LICENSES, EXPANSION LICENSES AND INDUSTRIAL REGISTRATION CERTIFICATES

CHAPTER I
GENERAL PROVISIONS

Article 1

Referred to in this ministerial decree as:

Article 2

(1) It is obligatory that the establishment of every industrial company should obtain an industrial business license, hereinafter referred to as IUI.

(2) Selected industrial types in the small-scale industrial group shall be exempted from the obligation to obtain IUI.

(3) Selected industrial types in the small-scale industrial group as meant in paragraph (2) shall encompass all industrial types as set forth in Attachment I to Decree of the Minister of Industry and Trade No. 589/MPP/Kpe/10/1999 with the total corporate investment value of up to Rp 200,000,000.- (two hundred million rupiah), excluding the land and the building where the business is located.

(3) An Industrial Registration Certificate, hereinafter referred to as TDI and applied as IUP, shall be sufficient for selected industrial types as meant in paragraph (3).

CHAPTER II
GRANTING OF IUI, TDI AND INDUSTRIAL EXPANSION

Article 3

(1) All industrial types in the small-scale industrial group as meant in Article 2 paragraph (3) with a total corporate investment value of less than Rp 5,000,000.oo (five million rupiah), excluding land and the building where the business is located, shall not be obligated to obtain TDI unless the companies concerned wish to have it.

(2) All industrial types in the small-scale industrial group with a total corporate investment value of Rp 5,000,000.oo (five million rupiah) up to Rp 200,000,000.oo (two hundred million rupiah), excluding the land and the building where the business is located, shall be obligated to obtain TDI.

(3) All industrial types with a total corporate investment value of over Rp 200,000,000.00 (two hundred million rupiah), excluding the land and the building where the business is located, shall be obligated to obtain IUI.

Article 4

(1) IUI may obtained through the stage of approval in principle or without going through the stage of approval in principle.

(2) An industrial company already obtaining IUI, shall, within a period of 3 (three) months as from the date of the issuance of IUI, be obligated to registered the company in a corporate list pursuant to the provision in Law No. 3/1982 on compulsory corporate regulation.

(3) An approval in principle shall be granted to an industrial company to be able to directly make preparation and undertake the necessary construction, supplies, installation of equipment and so forth.

(4) An approval in principle shall not constitute a license for commercial production.

(5) IUI obtained through the stage of approval in principle shall be granted to an industrial company already fulfilling the provisions in the prevailing laws such as, among others, a location permit, a nuisance act or an analysis on environmental impacts (AMDAL), environmental management undertaking (UKL), environmental monitoring undertaking (UPL) and already completing the construction of the factory and production facilities and being ready for production.

Article 5

An industrial company undertaking expansion in excess of 30% (thirty percent) of the production capacity already permitted pursuant to the IUI possessed, shall be obligated to obtain an expansion license.

Article 6

(1) IUI, an expansion license and TDI shall be valid as long as the industrial company concerned is operational.

(2) The validity period of the IUI and an expansion license for a foreign investment company shall be given pursuant to the provision in Law No. 1/1967 and No. 11/1970 on foreign investment and its implementation regulation.

Article 7

(1) IUI and TDI shall be granted for each industrial type in accordance with the 5 (five)-digit Indonesian Business Area Classification as meant in Decree of the Minister of Industry and Trade No. 589/MPP/Kep/10/1999 encompassing all industrial commodities within the scope of the said industrial type.

(2) Industrial commodities the industrial types of which have not been stipulated in the decree of the Minister of Industry and Trade as meant in paragraph (1) shall be further stipulated by the Minister.

(3) As for the industrial commodities as meant in paragraph (2), the authority for the granting of their licenses shall rest with heads of regional offices and heads of the offices of the Ministry of Industry and Trade in accordance with their respective tasks and authority until further stipulations are available.

Article 8

(1) To obtain IUI, an industrial company :

(2) To obtain IUI, an industrial company :

Article 9

(1) It is obligatory that the statement as meant in Article 8 paragraph (2) should contain a provision on the readiness of an industrial company, among other things:

(2) The form of the statement as meant in paragraph (1) shall be model SP-I form.

(3) In the case of an industrial company located in an industrial estate/bonded zone, the implementation of the statement shall be monitored by the industrial estate company/management and the result shall be reported to the minister or an appointed official.

(4) In the case of a company located outside an industrial estate/bonded zone, the implementation of the statement shall be monitored by the head of the ministry office/regent/municipality head, in this case, the head of the local industry and trade service and the result shall be reported to the minister of an appointed official.

(5) A statement shall constitute an inseparable part of the IUI to be issued.

Article 10

A notification of approval, in the case of an industrial company set up in the framework of a foreign investment scheme, or a letter of approval on investment from the chairman of the Investment Coordinating Board/chairman of a Regional Investment Coordinating Board, in the case of an industrial company set up in the framework of a domestic investment scheme and located in an industrial estate, shall have the force of MI.

Article 11

The authority to grant IUI, an expansion license and TDI as meant in this decree shall be given by the officials as meant in Article 5 paragraph (1) letters a, b and c of Decree of the Minister of Industry and Trade No. 589/MPP/Kep/10/1999.

Article 12

(1) The delegation of authority to grant IUI, an expansion license and TDI from the Minister to the chairman of the Investment Coordinating Board IBKPMI, in the case of industries the investments of which are undertaken in the framework of Law No. 1/1967 on foreign investment as already amended by Law No. 11/1970 and Law No. 6/1968 on domestic investment as already amended by Law No. 12/1970, shall be stipulated separately in a ministerial decree.

(2) The provision on the granting of IUI, an expansion license and TDI, in the case of the companies as meant in paragraph (1 ), must observe the provisions in this decree.

CHAPTER III
PROCEDURE FOR APPLICATION FOR IUI THROUGH THE STAGE OF APPROVAL IN PRINCIPLE

Article 13

(1) An application for an approval in principle shall be filed using a form of model Pm-I.

(2) An application for IUI through the stage of approval in principle shall be filed using a form of model Pm-III.

Article 14

(1) An application for an approval in principle shall be filed directly by an applicant to the head of a regional office or the head of a ministry office concerned, using a form of model Pm-I.

(2) After the form of model Pm-I is received in complete an correct order and after a recommendation has been obtained from the Director General of Chemical, Agro and Forest-Product-Based Industries for the industrial types required by the recommendation, the head of a regional office or the head of a ministry office concerned shall, within 14 (fourteen) working days at the latest, be obligated to give an approval in principle, using a Pi-I form.

(3) Regarding an application for an approval in principle already received but not in compete or correct order, the head of the regional office or the head of the ministry office concerned shall, within 14 (fourteen) working days at the latest as from the receipt of the application for an approval in principle, be obligated to refuse to grant an approval in principle, using a form of model Pi-VI.

(4) As for applications for an approval in principle of which the industrial types turn out to be included in the business areas closed to investment, the head of the regional office or the head of the ministry office concerned shall, at the latest within 14 (fourteen) working days as from the receipt of the applications for an approval in principle, be obligated to issue a letter of rejection, using a form of model Pi-VI.

(5) An approval in principle may be changed in accordance with a request made by the party concerned.

(6) An approval in principle shall be valid for a period of 4 (four) years as from the date of the issuance of the approval in principle.

(7) In implementing the approval in principle, the industrial company concerned shall be obligated to provide information to the official issuing the approval in principle concerning the progress of the construction of a factory and production facilities once a year, at the latest on January 31 in the next year, using a form of model Pm-III, with a copy to be addressed to the Director General fostering the industrial type concerned.

(8) An approval in principle shall be canceled automatically if within a maximum period of 4 (four) years, the applicant/holder of an approval in principle fails to complete the construction of a factory and production facilities and has not obtained IUI.

(9) An industrial company of which the approval in principle is automatically aborted as meant in paragraph (11 ) may file again an application for a new approval in principle, using a form of model Pm-I.

Article 15

(1) An industrial company of which the construction of the factory and production facilities has been completed and which is ready to start production and has fulfilled all the prevailing provisions shall be obligated to file an application for IUI, using a form of model Pm-III.

(2) A form of model Pm-III shall be filed directly by an industrial company to the head of the regional office or the head of the ministry office concerned, with a copy to the head of the local ministry office, in the case of those whose license applications are filed to the head of a regional office.

(3) The local ministry office shall, at the latest within 14 (fourteen) working days as from the receipt of the form of model Pm-III or its copy, already make an inspection to the location to ensure that the construction of the factory and production facilities has been completed.

(4) The result of the inspection as meant in paragraph (3) shall entail the drawing up of an official report of inspection (BAP), using a form of model Pi-II, shall be reported to the head of the regional office or the head of the ministry office concerned at the latest within 7 (seven) working days after the inspection.

(5) If the inspection as meant in paragraph (3) is not conducted, the company concerned may make a statement on being ready for commercial production to the head of the regional office or the head of the ministry office concerned with a copy to the head of the local ministry office in the case of those whose license applications are filed to the head of the regional office.

(6) At the latest within 14 (fourteen) working days as from the receipt of the report on the result of the inspection as meant in paragraph (4) or the receipt of the statement as meant in paragraph (5), the head of the regional office or the head of the ministry office concerned shall be obligated to grant IUI, using a form of model Pi-III or make a postponement by means of a written notification, using a form of model Pi-VI, on the basis of the consideration that the construction of the factory and production facilities has not been completed.

CHAPTER IV
PROCEDURE FOR APPLICATION FOR IUI WITHOUT GOING THROUGH AN APPROVAL IN PRINCIPLE

Article 16

(1) Am application for IUI shall be filed using a form of model SP I and a form of model SP II.

(2) An application for an expansion license shall be filed using a form of model SP III.

Article 17

(1) An application for IUI for an industrial type the IUI of which is granted without going through the stage of approval in principle shall be made on by making a statement, using a form of model SP I and completing a list of completion for an IUI application, using a form of model SP II submitted together at the time when the application for IUI is filed.

(2) Forms of models SP I and SP II as meant in paragraph (1) shall be filed directly by an industrial company to the head of the regional office or the head of the ministry office concerned.

(3) At the latest within 14 (fourteen) working days as from the receipts of the forms of model SP I, SP II in complete and correct order, the head of the regional office or the head of the ministry office concerned shall be obligated to grant IUI, using a form of model SP VI.

(4) The industrial company concerned shall be obligated to provide information about the progress of the construction of the factory and production facilities once a year, at the latest on January 31 in the next year, using a form of model PM-II, to the official issuing IUI, with a copy to be addressed to the Director General fostering the industrial type concerned.

(5) If, within a maximum period of 4 (four) months as from the issuance of IUl, the said holder of IUI of model SP VI has not completed the construction of the factory and production facilities and has not fulfilled all provisions in the prevailing laws, the IUI shall be automatically canceled.

(6) An industrial company of which the IUI is automatically canceled as meant in paragraph (5) may file again an application for a new IUI, using a form of model SP I and a list of completion of the form of model SP II.

CHAPTER V
PROCEDURE FOR APPLICATION OF AN EXPANSION LICENSE

Article 18

(1) Every industrial company already possessing IUI, either through the stage of an approval in principle or without an approval in principle, and undertaking expansion shall be obligated to obtain an expansion license.

(2) To obtain an expansion license, every industrial company already possessing IUI through the stage of an approval in principle shall be obligated to submit a plan for industrial expansion and fulfill the environmental requirements.

(3) In undertaking expansion, every industrial company already possessing IUI without going through the stage of approval in principle as meant in Article 8 paragraph (2) shall be obligated to submit a plan for industrial expansion.

Article 19

Every industrial company already possessing IUI and wishing to undertake expansion in the scope of industrial type set forth in the IUI shall be permitted to raise its production capacity by a maximum of 30% (thirty percent) above the production capacity permitted, without needed an expansion license as far as the industrial type is pen to an investment.

Article 20

(1) Every industrial company already possessing IUI may undertake expansion without first having an expansion license if the expansion encompassed within the scope of the industrial type is 30% (thirty percent) higher than the production capacity already permitted while its production output is intended for the export market although the said industrial type is declared closed to an investment.

(2) Every industrial company undertaking expansion as meant in paragraph (1) shall be obligated to notify in writing, using a form of model Pm-IB or SP-III the increase in its production as a result of the expansion activities at the latest 6 (six) months as from the commencement of production, to the head of the regional office or the head of the ministry office granting the IU in order to be validated along with the expansion license by the head of the regional office or the head of the ministry office concerned.

Article 21

(1) In the case of an industrial company already possessing MI without going through the stage of approval in principle, a form of model Pm-IV shall be used for an application for an expansion license.

(2) In the case of an industrial company already possessing IUI without going through the stage of approval in principle, a form of model SP III shall be used for an application for an expansion license.

(3) A form of model Pm-IV or SP III as meant in paragraphs (1) and (2) shall be filed directly by the industrial company concerned to the head of the regional office or the head of the ministry office concerned.

(4) At the latest within 14 (fourteen) working days as from the receipt of the form of model Pm-IV or SP III in complete and correct order in accordance with the requirements, the official as meant in paragraph (3) shall be obligated to grant an expansion license using a form of:

CHAPTER VI
PROCEDURE FOR APPLICATION FOR TDI

Article 22

(1) The establishment of every industrial company with a total corporate investment value of Rp 5,000,000.- (five million rupiah) up to Rp 200,000,000.- (two hundred million rupiah), excluding the land and the building where the business is located, shall entail the obligation to obtain TDI.

(2) As for an industrial company already obtaining TDI, it is obligatory that within a period of 3 (three) months as from the date of the issuance of TDI it should be registered in the list of companies pursuant to the provision in law No. 3/1982 on compulsory corporate registration.

(3) The stage of approval in principle shall not be needed to obtain TDI in the case of an industrial company as meant in paragraph (1).

Article 23

(1) An application for TDI as meant in Article 22 Shall be filed directly to the head of the local ministry office, using a form of model Pdf. I-IK.

(2) At the latest within 14 (fourteen) working days as from the receipt of the application for TDI as meant in paragraph (1) in correct and full order, the head of the ministry office concerned shall be obligated to give an industrial registration certificate, using a form of model Pdf. II-IK.

CHAPTER VII
REJECTION/POSTPONEMENT OF AN APPLICATION
FOR IUI THROUGH THE STAGE OF APPROVAL IN PRINCIPLE

Article 24

As for an application for IUI which has been received and turns out not to fulfill one of the following provisions:

Ka. Regional Office or Ka. Kandep concerned at the latest 14 (fourteen) working days from the receipt of the Report on Examination (BAP) is obligated to give IUI Rejection Letter accompanied with reasons for using Pi-Model Form VI and forwarded to the Ka. Local Kandep for the permission request filed with the Ka. Regional Office.

Article 25

(1) As for an application for IUI which has been received and turns out not to fulfill one of the following provisions:

(2) Regarding the letter of postponement of IUI as meant in paragraph (1), the industrial company concerned shall be allowed an opportunity to complete the requirements which have not been fulfilled at the latest 6 (six) months as from the receipt of the letter of postponement of IUI.

(3) As for an industrial company which cannot fulfill the requirements as meant in paragraph (1) within a stipulated period as meant in paragraph (2), the head of the regional office or the head of the ministry office concerned shall be obligated to give a letter of rejection of IUI application, using a form of model Pi-VI, with a copy to be addressed to the head of the local ministry office, in the case of those whose license application is filed to the head of a regional office.

CHAPTER VIII
REJECTION/POSTPONEMENT OF IUI APPLICATION
WITHOUT GOING THROUGH APPROVAL IN PRINCIPLE

Article 26

As for an IUI application which has been received and of which the industrial type turns out to be included in the business area closed to an investment, the head of the regional office or the head of the ministry office concerned shall, at the latest within 14 (fourteen) working days as from the receipt of the application of the license, be obligated to give a letter of rejection of IUI along with the reasons, using a form of model SP-VIII.

Article 27

(1) As for an IUI application which has been received and which turns out not to have completed the completion and fulfilled the requirements in the forms of models SP-I and SP-II, the head of the regional office or the head of the ministry office concerned shall, at the latest within 14 (fourteen) working days as from the receipt of the application for a license, be obligated to give a letter of rejection of IUI along with the reasons, using a form of model SP-VIII, with a copy to be addressed to the head of the ministry office in the case of those whose license application has been filed to the head of the regional office.

(2) As for the letter of rejection of IUI as meant in paragraph (2), the industrial company concerned shall be allowed an opportunity to complete the requirements which have not been fulfilled at the latest within 14 (fourteen) working days as from the receipt of the letter of rejection of IUI.

(3) As for a company which cannot fulfill the requirements as meant in forms of model SP-I and SP-II within the period of time stipulated as meant in paragraph (2), the head of the regional office or the head of the ministry office concerned shall be obligated to issue a letter of rejection of IUI application, using a form of model SP-VIII, with a copy to be addressed to the head of the local ministry office for those whose license application is filed to the head of the regional office.

Article 28

(1) As for a letter of rejection of IUI issued by the head of a ministry office, both through the approval in principle and without going through the approval in principle, the industrial company concerned may file a request for an appeal to the head of a regional office and as for IUI issued by the head of a regional office, the request for an appeal shall be made to the Director General fostering the industrial type concerned at the latest 30 (thirty) working days as from the receipt of the letter of rejection of a license.

(2) The official as meant in paragraph (1) shall be obligated to receive or reject a request for an appeal as meant in paragraph (1) in writing and mention the reasons, at the latest within 30 (thirty) working days as from the receipt of the request for an appeal.

Article 29

An industrial company the IUI application of which is rejected at the level of appeal as meant in Article 28 paragraph (2) may file again an application for a new IUI.

CHAPTER IX
REJECTION/POSTPONEMENT OF AN APPLICATION FOR TDI

Article 30

An application for TDI which has been received and the industrial type of which turns out to be different from the industrial type in the completion form filed, the head of the ministry office concerned shall, at the latest within 14 (fourteen) working days as from the finding of the said discrepancy in the industrial type, be obligated to issue a letter of rejection of TDI along with the reasons, using a form of model SP-IX.

Article 31

(1) As for an application for TDI which has been received and turns out not to have completed the completion and the requirements in the form of model Pdf. I-IK, the head of the ministry office concerned shall, at the latest 14 (fourteen) working days as from the receipt of the application for TDI, be obligated to issue a letter of postponement along with the reasons, using a form of model SP-IX.

(2) As for the letter of postponement as meant in paragraph (2), the industrial company concerned shall be allowed an opportunity to complete the completion of a form of model Pdf. I-IK filed at the latest within 14 (fourteen) working days as from the receipt of the letter of postponement.

(3) As for an industrial company which cannot fulfill the provisions as meant in paragraph (3) the head of the ministry office concerned shall be obligated to issue a letter of rejection of application for TDI, using a form of model SP-IX.

Article 32

(1) As for a letter of rejection of application for TDI issued by the head of a ministry office, the industrial company concerned may file an application for an appeal request to the head of the regional office concerned at the latest within 30 (thirty) working days as from the receipt of the letter of rejection of application for TDI.

(2) The head of the regional office concerned shall be obligated to accept or reject the request for an appeal as meant in paragraph (1) in writing, men ioning the reasons at the latest within 30 (thirty) working days as from the receipt of the letter of rejection of application for TDI.

CHAPTER X
WARNING, SUSPENSION AND REVOCATION

Article 33

(1) An industrial company shall be given a warning in writing if:

(2) A written warning shall be given to the industrial industry for 3 (three) times at a stretch within an interval of one week each; 1 (one) month, using a form of model Pi-VTT.

Article 34

(1) As for an industrial company which:

(2) The Suspension of IUI or TDI for an industrial company as meant in paragraph (1) letters a and b shall be valid for 6 (six) months as from the date of the issuance of the stipulation on the suspension of the activities of industrial undertakings.

(3) To an industrial company as meant in paragraph (1) letter c, the suspension of IUI or TDI shall be valid until there is a ruling of a judicial board with a permanent force.

(4) If during the time of license suspension, the industrial company concerned has made improvement pursuant to the provision in this decree, the license rnay be made effective again.

Article 35

(1) IUI/TDI may be revoked if:

(3) An official authorized to revoke IUI/TDI shall be an official authorized by the Minister to issue IUI/TDI.

(4) A form of model Pi-IX shall be used for the revocation of IUI/TDI.

CHAPTER XI
INDUSTRIAL INFORMATION

Article 36

(1) An industrial company which has obtained IUI shall be obligated to provide industrial information periodically to the official authorized to grant IUI with a copy to be addressed to the Director General Fostering Industrial Types concerned about its business activities in accordance with the following schedule:

(2) An industrial company which has obtained TDI shall be obligated to convey industrial information to an official issuing the TDI every year at the latest on January 31 in the next year with a copy to be addressed to the Director General of Small-Scale Industries and Small-Scale Trading, using a form of model Pdf. III-IK.

(3) All industrial types in the group of small-scale industries as meant in Article 3 sub-article (1) shall be excepted from the obligation to convey industrial information.

CHAPTER XII
OTHER PROVISIONS

Article 37

(1) If IUI or TDI already possessed by an industrial company is lost or damaged so that it becomes illegible, the industrial company concerned may file an application for the replacement of the said IUI/TDI to an official authorized to issue IUI/TDI on the basis of this decree, using:

(2) Every application for replacement of IUI or TDI which has been damaged or lost as meant in sub-article (1) shall have as its attachment the original IUI/TDI or a certificate from the local police certifying the loss of the said IUI/TDI.

(3) At the latest 7 (seven) working days as from the receipt of the application for the replacement of IUI/TDI, the authorized official as meant in sub-article I1 I shall issue IUI/TDI as replacement of the lost or damaged IUI/TDI, using:

Article 38

IUI expansion license or TDI issued on the basis of this decree shall also apply to a storing place located in the compound of the industrial business concerned, which shall be used for the storage of instruments, equipment, raw materials, auxiliary
materials and finished goods/materials for the purpose of the said industrial business activities.

Article 39

(1) The removal of an industrial location shall entail the obligation to possess a prior written approval from the head of a regional office or the head of a ministry office granting the IUI or TDI both at the old location and at the new one.

(2) An application for the approval of location removal shall be filed directly to the official as meant in sub-article (1), using a form of model Pm-VII.

(3) At the latest within 14 (fourteen) working days, the head of a regional office or the head of a ministry office granting IUI or TDI at the old location and at the new location shall be obligated to issue a written approval, using a form of model Pi-X and this shall apply as an approval in principle in the new location.

Article 40

(1) An industrial company already obtaining IUI, an expansion license or TDI and changing its name, address and/or party responsible for the company, shall be obligated to notify this matter in writing to the head of a regional office or the head of a ministry office granting IUI, an expansion license or TDI at the latest 30 (thirty) working days as from the receipt of the stipulation on the change from the Minister of Justice.

(2) At the latest within 14 (fourteen) working days as from the receipt of the notification of the change from the industrial company as meant in sub-article (1 ), the head of a regional office or the head of a ministry office shall issue an approval of the application for a change, using the form of model Pi-V and the said change shall constitute an inseparable part of IUI, expansion license or TDI

Article 41

Pursuant to the IUI or TDI obtained, an industrial company shall be obligated:

Article 42

The model o the form used for the implementation of this decree shall be as set forth in the attachment to this decree.

Article 43

The implementation of the granting of IUI, expansion license and TDI shall not entail charges in any form.

Article 44

If an official already given the delegation of authority by the Minister for the granting of IUI or TDI is incapacitated for over 7 (seven) working days, the official concerned shall be obligated to appoint 1 (one) official of one level lower to act on behalf of the official giving the said authority to sign IUI and or TDI.

CHAPTER XIII
CRIMINAL SANCTIONS

Article 45

(1) An industrial company which is run not in fulfillment of the requirements as meant in Articles 2 and 36 shall be subject to sanctions pursuant to the criminal provisions as set forth in Article 24 of Law No. 5/1984 on industrial affairs.

(2) An industrial company which does not implement the provision in Article 41 letter a so that it shall bring about pollution shall be subject to sanctions pursuant to the criminal provisions as set forth in Article 27 of Law No. 5/1984 on industrial affairs.

(3) he procedure for the implementation of the criminal provisions as meant in sub-articles (1) and (2) shall be implemented pursuant to the prevailing laws.

CHAPTER XIV
TRANSITIONAL PROVISIONS

Article 46

(1) An approval in principle already obtained by an industrial company from the Director General or the head of a regional office prior to the stipulation of this decree shall remain valid as one of the stages to obtain IUI on the basis of this decree.

(2) In the case of an approval in principle already obtained by an industrial company from the Director General prior to the stipulation of this decree for the industrial types as set forth in Attachment i to Decree of the Minister of Industry and Trade No. 589/MPP/Kep/10/1999, the application for the IUI may be filed directly to the head of a regional office or the head of a ministry office by attaching the said approval in principle, with a copy to the Director General fostering the industrial types concerned.

(3) In the case of an approval in principle already obtained by an industrial company from the Director General or the head of a regional office prior to the stipulation of this decree for the industrial types with a total investment value of above Rp 200,000,000.- (two hundred million rupiah) up to Rp 1,000,000,000.- (one billion rupiah), excluding the land and the building where the business is conducted, the company concerned may directly file an application for IUI to the head of a ministry office by attaching the said approval in principle, with a copy to be addressed to the Director General fostering the industrial types or the head of the regional office concerned.

(4) In the case of an approval in principle already obtained by an industrial company prior to the stipulation of this decree for the industrial types with a total investment value of above Rp 1 ,000,000,000.- (one billion rupiah), excluding the land and the building where the business is conducted, the company concerned may directly file an application for IUI to the head of a regional office, by attaching the said approval in principle, with a copy to be addressed to the Director General fostering the industrial types concerned.

(5) A permanent license or IUI or an expansion license already obtained by an industrial company prior to the stipu!ation of this decree shall remain valid on the basis of this decree.

(6) A Registration Certificate for a Small-Scale Industry and TDI already obtained prior to the stipulation of this decree shall remain value as TDI on the basis of this decree.

(7) If an industrial company already obtaining a permanent license or IUI prior to the stipulation of this decree undertakes expansion for the industrial types as set forth in Attachment I to Decree of the Minister of industry and Trade No. 589/MPP/Kep/10/1999, it shall file the application directly to the head of a regional office or the head of a local ministry office in order to obtain an expansion license.

(8) If an industrial company already obtaining a Registration Certificate for a Small-Scale Industry/TDI prior to the stipulation of this decree undertakes expansion for the industrial types:

Article 47

(1) With respect to an application for an approval in principle or IUI or an expansion license which is still in the process of settlement, previously under the authority of the Director General of the head of a regional office, the stipulation of this decree shall entail an obligation on the part of the company concerned to file again a new application for an approval in principle or IUI or an expansion license to the head of a regional office or the head of a ministry office pursuant to the provisions in this decree.

(2) The process of settlement of an application for an approval in principle or IUI or an expansion license as meant in sub-article (1) shall be implemented pursuant to the provisions in this decree.

CHAPTER XV
CLOSING PROVISION

Article 48

This decree shall take effect 3 (three) months 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 13, 1999
THE MINISTER OF INDUSTRY AND TRADE,
sgd
RAHARDI RAMELAN