REGULATION OF THE MINISTER OF FINANCE
No. 101/PMK.04/2007

CONCERNING
EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF EQUIPMENT AND MATERIAL
ARE USED TO PREVENT ENVIRONMENT POLLUTION

MINISTER OF FINANCE,

Considering:

That in the framework of implementation provision in Article 26 paragraph (1) sub-paragraph d of Law No. 10/1995 concerning Customs Affair as amended by Law No. 17/2006, it is necessary to stipulate Regulation of the Minister of Finance concerning Exemption from import duty on the import of equipment and material are used to prevent environment pollution.

In view of:

• 1. 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 (Statute Book of 2006 No. 93, Supplement to Statute Book No. 4661);
• 2. Law No. 23/1997 concerning Life Environment Management (Statute Book of 1997 No. 68, Supplement to Statute Book No. 3669);
• 3. Presidential Decree No. 20/P/2005;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF EQUIPMENT AND MATERIAL ARE USED TO PREVENT ENVIRONMENT POLLUTION

Article 1

In this Regulation of the Minister of Finance, the meaning of:

• 1. Equipment is used to prevent or control environment pollution referred to installation, engine and kind of engines, also spare parts are used to process waste, so when it is thrown not make contamination or damage of environment.
• 2. Materials are used to prevent or control environment pollution referred to all biological materials and/or chemical material are used to process waste, so when it is thrown not make contamination or damage of environment.
• 3. Industrial company is business board which in its industrial process or business activity produces waste, like manufacture, hospital and laboratory industry.
• 4. Waste processing company referred to business board which specially conduct business to process waste to make it not make contamination or damage of environment when it is thrown.
• 5. Minister referred to Minister of Finance of the Republic of Indonesia.
• 6. Director General referred to Director General of Customs and Excise.

Article 2

(1) Importation of equipment and material are used to prevent or control environment pollution get exemption of import duty.

(2) Exemption of import duty as intendedintended in paragraph (1) is given to industrial company or waste processing company.

Article 3

(1) To get exemption of import duty as intended in Article 2, industrial company or waste processing company should propose proposal of exemption of import duty to Minister by Director General.

(2) Proposal of exemption of import duty as intended in paragraph (1) should be attached with:

• a. Notary deed of company establishment and business licenses from related agencies.
• b. Tax Payee Number (NPWP);
• c. decision as Tax Payee Entrepreneur (PKP) and Annual Report Letter (SPT) of last year Income Tax (PPh) for company which shall give SPT.
• d. detail of sum, kinds, and prediction of customs value of equipment and materials are given exemption of import duty, and discharging port; and
• e. recommendation from ministry which handles environment problem/agency which handle environment impact controlling like:
• 1. industrial company or waste management company which do waste management activity to prevent contamination or damage environment when it was thrown;
• 2. Equipment and material are used to prevent or control environment pollution of the company.

Article 4

(1) Director General gives approval or rejection for proposal of exemption of import duty as intended in Article 3.

(2) In case proposal of exemption of import duty as intended in Article 3 is accepted, Director General in the name of Minister issues decision of exemption of import duty.

(3) Decision of exemption of import duty as intended in paragraph (2) describes sum, kind and prediction of customs value of equipment and materials are given exemption of import duty, and discharging port.

(4) In case proposal of exemption of import duty as intended in Article 3 is rejected, Director General make notice letter of rejection for proposal of exemption of import duty and stated the reasons of rejection.

Article 5

By request of exemption of import duty as intended in Article 4 paragraph (2), if importing goods by industrial company or waste processing company, not match of sum and/or kind of good as attached in decision of exemption of import duty, the different should pay import duty.

Article 6

(1) Importing goods which get exemption of import duty as intended in Article 2, if had been used for 2 years since registration date of import customs declaration, can be sold or used for other purpose after get approval from Director General.

(2) Importing goods are sold or used for other purpose as intended in paragraph (1) not subject to import duty.

Article 7

Technical provisions are need for implementation of this Regulation of the Minister of Finance will be arranged by Director General.

Article 8

When effective date of this Regulation of the Minister of finance, Regulation of the Minister of Finance No. 136/KMK.05/2002 shall be declared null and void.

Article 9

This Regulation of the Minister of Finance shall come into force since 30 (thirty) days since date of stipulation.

For Public cognizance this Decree shall be published in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On September 5, 2007
THE MINISTER OF FINANCE
Signed
SRI MULYANI INDRAWATI