GOVERNMENT REGULATION
No. 48/2007

CONCERNING
KARIMUN FREE TRADE AND FREE PORT AREA

BY THE GRACE OF ALMIGHTY GOD
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering:

• a. that Karimun territory met the criteria for a free trade and port area;
• b. that in order to better maximize the implementation of development as well as guaranteeing business activities in the economic sectors, covering trade, maritime, industry, transportation, banking, tourism and other fields in the area as described in a above, it is necessary to stipulate the area to become a free trade and port area;
• c. that based on Article 4 of Government Regulation in Lieu of Law No. 1/2007 concerning the Amendment to Law No. 36/2000 concerning Stipulation of Government Regulation in Lieu of Law No. 1/2000 concerning Free Trade and Port Areas to become a law, the establishment of free trade and port areas is stipulated by a government regulation;
• d. that based on the considerations as intended in paragraphs a, b and c, it is necessary to stipulate a government regulation concerning Karimun Free Trade and Port Area;

In view of:

• 1. Article 5 paragraph (2) and Article 33 of the Constitution of 1945;
• 2. Law No. 11/1995 concerning Excise (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• 3. Law No. 36/2000 concerning Stipulation of Government Regulation in Lieu of Law No. 1/2000 concerning Free Trade and Port Areas to become a Law (Statute Book of 2000 No. 251, Supplement to Statute Book No. 4053);
• 4. Law No. 17/2003 concerning State Finance (Statute Book of 2003 No. 47, Supplement to Statute Book No. 4286);
• 5. Law No. 32/2004 concerning Regional Administration (Statute Book of 2004 No. 125, Supplement to Statute Book No. 4437) as has already been amended by Law No. 8/2005 on Stipulation of Government Regulation in Lieu of Law No. 3/2005 concerning the Amendment to Law No. 32/2004 concerning Regional Administration to become a Law (Statute Book of 2005 No. 108, Supplement to Statute Book No. 4548);
• 6. Law No. 10/1995 concerning Customs Affair (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612) as has already been amended by Law No. 17/2006 concerning the Amendment to Law No. 10/1995 concerning Customs Affair (Statute Book of 2006 No. 93, Supplement to Statute Book No. 4661);
• 7. Law No. 26/2007 on Spatial Layout (Statute Book of 2007 No. 68, Supplement to Statute Book No. 4725);

HAS DECIDED:

To stipulate:

THE GOVERNMENT REGULATION CONCERNING KARIMUN FREE TRADE AND FREE PORT AREA

Article 1

(l) By this government regulation, Karimun shall be stipulated as a free trade and port area for 70 (seventy) years as from the date of enforcement of this government regulation.

(2) The Karimun Free Trade and Free Port Area as described in paragraph (1) shall cover part of the territory of Karimun Island and the whole territory of Karimun Anak Island.

(3) The fixed border and coordinate point of the territory as intended in paragraph (1) shall be as contained in the enclosed map inseparable from this government regulation.

Article 2

(l) In the Karimun Free Trade and Free Port Area, activities in the economic sectors, such as trade, maritime, industry, transportation, banking, tourism and other sectors shall be executed.

(2) The other sectors as described in paragraph (1) shall be stipulated by a special government regulation.

(3) Development of activities in the economic sectors in the free trade and free port area as intended in Article 1 paragraph (2) shall be in accordance with the Karimun Regency Layout Plan.

Article 3

With the enforcement of this government regulation, all agreements, commitments or cooperation as well as licenses or facilities granted by the Karimun Regency Government shall be declared to remain effective until expiring.

Article 4

The Management Board of the Karimun Free Trade and Free Port Area shall be stipulated in not later than one year as from the date of promulgation of this government regulation.

Article 5

The government regulation shall come into force as from the date of promulgation.

For Public notice, this Government Regulation shall be promulgated in Statute Book of the Republic of Indonesia.

Stipulated in Jakarta
On August 20, 2007
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
signed
DR. H. SUSILO BAMBANG YUDHOYONO

Stipulated in Jakarta
On August 20, 2007
THE MINISTER OF LAW AND HUMAN RIGHTS
Signed
ANDI MATTALATTA

STATUTE BOOK OF THE REPUBLIC OF INDONESIA YEAR 2007 No. 109
Elucidfation on GOVERNMENT REGULATION
No. 48/2007