REGULATION OF THE MINISTER OF FINANCE
No. 120/PMK.010/2006

CONCERNING
EXEMPTION FROM IMPORT DUTY ON IMPORT OF GOODS FOR GEOTHERMAL BUSINESS ACTIVITIES

THE MINISTER OF FINANCE,

Considering:

• a. that in order to boost business activities in the geothermal sector, it is deemed necessary to exempt import duty on the import of goods used for exploiting geothermal resources;
• b. that based on the consideration as intendedin paragraph a, it is necessary to stipulate a regulation of the minister of finance on the exemption from import duty on the import of goods of the need of geothermal business activities;

in view of:

• 1. Law No. 10/1995 on customs affairs (statute book of 1995 No. 75, supplement to statute book No. 3612);
• 2. Law No. 27/2003 on Geothermal (statute book of 2003 No. 115, supplement to statute book No. 4327);
• 3. Presidential Decree No. 20/P/2005;
• 4. Decree of the Minister of Finance No. 547/KMK.01/2003 concerning stipulation of Tariff’s of Import duty on Imported Goods.

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS FOR THE NEED OF GEOTHERMAL BUSINESS ACTIVITIES

Article 1

The import of goods used for geothermal business activities, as stipulated in this regulation is exempted from import duty so that the final tariff of import duty becomes 0% (nil percent).

Article 2

The exemption from the import duty as intendedin article I is given to business entities securing working areas of Mining (WKP) or geothermal mining business Licensed, PT.Pertamina (Persero) and PT. Geo Dipa energi.

Article 3

(1) application for the exemption as intendedin article 1 are submitted to the director general of customs and excise with a copy made available to the director General of minerals, coal, and geothermal, Ministry of energy and Mineral resources.

(2) The application as intendedin paragraph (1) are accompanied by import plan of goods (RIB) to which the facility of exemption is requested.

(3) RIB as intended in paragraph (2) minimally contain the following elements of data:

• a. number and date of RIB;
• b. corporate name;
• c. tax payer code number (NPWP);
• d. address;
• e. working area;
• f. customs and Excise service office overseeing the importing place of goods;
• g. tariff heading of goods;
• h. total/unit of goods;
• i. estimated Price/ Import value;
• j. corporate Executive.
• k. Director.

Article 4

The Director General and Excise on behalf of the minister of Finance issues a decree of the Minister of Finance on the granting of exemption form import duty as intended in article 1 by referring to the list of goods as set forth in the attachment to this regulation.

Article 5

The director General of customs and Excise is instructed to implement the provisions in this regulation.

Article 6

The regulation comes into forces as from the date of stipulation to July 15, 2007 and is retroactive to April 27, 2006.

For public cognizance,it is ordered that the Minister of Finance regulation shall be published by placing it in state gazette of the republic of Indonesia.

Stipulated in Jakarta
On December 4, 2006
THE MINISTER OF FINANCE
Signed
SRI MULYANI INDRAWATI