REGULATION OF THE MINISTER OF FINANCE
No. 11/PMK.03/2007

CONCERNING
THIRD AMENDMENT TO THE DECREE OF THE MINISTER OF FINANCE
No. 155/KMK.03/2001
ON
ENFORCEMENT OF EXEMPTION OF VALUE ADDED TAX ON IMPORT AND/OR
CONVEYANCE OF CERTAIN STRATEGIC TAXABLE GOODS

THE MINISTER OF FINANCE,

Considering:

that, with the stipulation of Government Regulation No. 7/2007 on Third Amendment to Government Regulation No. 12/2001 on Import and/or Conveyance of Certain Strategic Taxable Goods Exempted from Imposition of Value Added Tax stating that import and/or conveyance of agriculture products is exempted from imposition of Value Added Tax, it is necessary to stipulate Regulation of the Minister of Finance on Third Amendment to Decree of the Minister of Finance No. 155/KMK.03/2001 on Enforcement of Exemption of Value Added Tax on Import and/or Conveyance of Certain Strategic Taxable Goods;

In view of:

• 1. Law No. 6/1983 on General Taxation Arrangements and Procedures (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as has already been amended several times and the latest is by Law No. 16/2000 (Statute Book of 2000 No. 126, Supplement to Statute Book No. 3984);
• 2. Law No. 8/1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (Statute Book of 1983, No. 51, Supplement to Statute Book No. 3264) as has already been amended several times and latest by Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
• 3. Government Regulation No. 143/2000 on Enforcement of Law No. 8/1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as has already been amended several times and the latest by Law No. 18/2000 (Statute Book of 2000 No. 259, Supplement to Statute Book No. 4199);
• 4. Government Regulation No. 12/2001 on Import and/or Conveyance of Certain Strategic Taxable Goods Exempted from Value Added Tax (Statute Book of 2001 No. 24, Supplement to Statute Book No. 40830 as has already been amended several times and the latest by Government Regulation No. 7/2007 (Statute Book of 2007 No. 23, Supplement to Statute Book No. 4697);
• 5. Presidential Decree No. 20/P/2005;
• 6. Decree of the Minister of Finance No. 155/KMK.03/2001 on Enforcement of Exemption of Value Added Tax on Import and/or Conveyance of Certain Strategic Taxable Goods as has already been amended several times and the latest by Decree of the Minister of Finance No. 371/KMK.03/2003;

HAS DECIDED:

To Stipulate:

REGULATION OF THE MINISTER OF FINANCE ON THIRD AMENDMENT TO DECREE OF THE MINISTER OF FINANCE No. 155/KMK.03/2001 ON ENFORCEMENT OF EXEMPTION OF VALUE ADDED TAX ON IMPORT AND/OR CONVEYANCE OF CERTAIN STRATEGIC TAXABLE GOODS.

Article 1

The provisions of Decree of the Minister of Finance No. 155/KMK.03/2001 on Enforcement of Exemption from Value Added Tax on Import and/or Conveyance of Certain Strategic Taxable Goods as has already been amended several times and the latest by Decree of the Minister of Finance:

• 1. No. 363/KMK.03/2002;
• 2. No. 371/KMK.03/2002;

are amended as follows:

1. The provisions of Article 1 paragraph 1 sub-paragraphs c and paragraph 2 are amended, and paragraphs 3 and 4 are deleted, so Article 1 becomes as follows:

"Article 1

Hereinafter referred to as:

1. Certain Strategic Taxable Goods are:

• a. Capital goods in form of machineries and factory equipments, installed or detached, not including spare parts;
• b. Food for livestock, fowl, fish, and/or raw materials for making of food for livestock, fowl, and fish;
• c. Agriculture products;
• d. Seeds and/or germs of products of agriculture, plantation, forestry, animal husbandry, animal breeding, or fishery;
• e. Deleted;
• f. Deleted;
• g. Clean water transmitted through pipes by Drinking Water Company; and
• h. Electricity, except for houses with capacity of above six thousand six hundred (6,600) watts.

2. Agriculture products are products generated as a result of business activities in the fields of:

• a. Agriculture, plantation, and forestry;
• b. Animal husbandry, animal hunting or catching, or animal breeding; or
• c. Fishery, by fish catching or fish breeding directly extracted, directly picked up, or directly absorbed from the sources, including those which are processed earlier with purpose to extend the age of storage or to enable further processes as set forth in Attachment to Government Regulation No. 7/2007.

3. Deleted

4. Deleted."

2. The provisions of Article 3 are deleted.

3. The provisions of Article 4 are amended to become as follows;

"Article 4

(1) Import and/or conveyance of certain strategic taxable goods as intended in Article 1 paragraph 1 sub-paragraphssub-paragraphs a, b, c, and d is exempted from Value Added Tax.

(2) Conveyance of certain strategic taxable goods as described in Article 1 paragraph 1 sub-paragraphs g and h is exempted from Value Added Tax."

4. The provisions of Article 5 paragraphs (2) and (6) are amended so Article 5 becomes as follows:

"Article 5

(1) Taxable Entrepreneur who imports and/or receives conveyance of certain Strategic Taxable Goods as described in Article 1 paragraph 1 sub-paragraphs a, shall have Certificate Exempt from Value Added Tax issued by the Director General of Taxation.

(2) Person or corporation which imports and/or receives conveyance of certain Strategic Taxable Goods as described in Article 1 paragraph 1 sub-paragraphs b, c, and d and/or receives conveyance of certain Strategic Taxable Goods as described in Article 1 paragraph 1 sub-paragraphs g and h is not obliged to have Certificate of Exempt from Value Added Tax issued by the Director General of Taxation.

(3) Request to obtain Certificate of Exempt from Value Added Tax as intended in paragraph (1) is submitted to the Director General of Taxation complete with documents of import and/or purchase.

(4) Based on request for obtaining Certificate of Exemption from Value Added Tax, the Director General of Taxation issues decision within not later than five (5) working days after request is received in complete form.

(5) For import of strategical certain goods subject to tax that gets exception of Value Added Tax not need Tax Payment Receipt.

(6) Import Manifest (PIB) on Import of Taxable Goods as intended in paragraph (5) is completed seal: "EXEMPTED FROM VALUE ADDED TAX PURSUANT TO GOVERNMENT REGULATION No. 12/2001 AS HAS ALREADY BEEN AMENDED SEVERAL TIMES AND LATEST BY GOVERNMENT REGULATION No. 7/2007" by the Director General of Customs and Excise."

5. The provisions of Article 6 are amended to become as follows:

"Article 6

(1) Person or corporation that conveys Certain Strategic Taxable Goods exempted from value Added Tax as intended in this Regulation shall report his businesses to the Director General of Taxation to be certified as Taxable Entrepreneur in accordance with tax regulations in force.

(2) Persons or corporations that only perform conveyance of Certain Strategic Taxable Goods as described in Article 1 paragraphs g or h are excluded from the provisions of paragraph (1) and not obligated to report their businesses to be certified as Taxable Entrepreneurs.

(3) Taxable Entrepreneur as intended in paragraph (2) shall issue Tax Invoice and shall put seal EXEMPTED FROM VALUE ADDED TAX PURSUANT TO GOVERNMENT REGULATION No. 12/2001 AS HAS ALREADY BEEN AMENDED SEVERAL TIMES AND LATEST BY GOVERNMENT REGULATION No. 7/2007."

Article II

1. Value Added Tax collected on import or conveyance of Certain Strategic Taxable Goods in form of agriculture products as described in Article 1 paragraph 1 clause c on or after January 1, 2007 until date of stipulation of this Regulation shall be paid to the state treasury in accordance with regulations in force.

2. Value Added Tax paid or collected as intended in paragraph 1 may be requested to be returned by importer or buyer as long as it is not yet credited or treated as expense.

Article III

This Regulation comes into force as from the date it is stipulated and retroactive since January 1, 2007.

For public cognizance, this Regulation is published in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on February 14, 2007
THE MINISTER OF FINANCE
Signed
SRY MULYANI INDRAWATI