DECREE OF THE MINISTER OF INDUSTRY AND TRADE
NO. 455/MPP/Kep/7/2004

CONCERNING
EXCEPTION TO PROVISIONS ON THE IMPORT OF SALT FOR INDUSTRIES AND
POWER OF ATTORNEY TO ISSUE SALT IMPORT PERMITS

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

a. that demand for salt as a raw material/auxiliary material of industries during the period of a ban on the import of salt set forth in Decree of the Minister of Industry and Trade No. 422/MPP/Kep/6/2004 cannot be met by local salt producers so that imported salt is needed;
b. that in connection with the matters referred to in letter a, it is necessary to make an exception to the ban on the import of salt for industries pursuant to Article 17 of Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 on Provisions on the Import of Salt as has been amended by Decree of the Minister of Industry and Trade No. 376/MPP/Kep/6/2004;
c. that to ensure the smooth exception to the ban on the import of salt referred to in letter b, it is necessary to appoint an official to issue salt import permits;
d. that in this connection, it is necessary to issue a decree of the Minister of Industry and Trade;

In view of:

1. Law No. 5/1984 on Industry (Statute Book of 1984 No. 27, Supplement to Statute Book No. 3274);
2. Law No. 7/1994 on the Ratification of Agreement Establishing The World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);
3. Law No. 10/1995 on Customs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
4. Government Regulation No. 25/2000 on the Authority of the Central Government and the Authority of Provinces as Autonomous Regions (Statute Book of 2000 No. 54, Supplement to Statute Book No. 3952);
5. Presidential Decree No. 260/1967 on the Affirmation of the Tasks and Responsibilities of the Minister of Trade in the Foreign Trade Field;
6. Presidential Decree No. 228/M/2001 on the Formation of Mutual-Help Cabinet;
7. Presidential Decree No. 102/2001 on the Position, Task, Function, Authority, Organizational Structure and Work Mechanism of Ministry;
8. Presidential Decree No. 109/2001 on the Organizational Unit and Task of First Echelon Officials of Ministry;
9. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 on General Provisions in the Import Sector;
10. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 on Goods Subject to Import Regulations as has been several times amended the latest by Decree of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004;
11. Decree of the Minister of Industry and Trade No. 86/MPP/Kep/3/2001 on the Organizational Structure and Work Mechanism of the Ministry of Industry and Trade;
12. Decree of the Minister of Industry and Trade No. 40/MPP/Kep/1/2003 on Importer's Identification Number (API);
13. Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 on Provisions on the Import of Salt as has been amended by Decree of the Minister of Industry and Trade No. 376/MPP/Kep/6/2004;
14. Decree of the Minister of Industry and Trade No. 422/MPP/Kep/6/2004 on Grand Harvest Time of Smallholder Salt in 2004;

DECIDES:

To stipulate:

DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON EXCEPTION TO PROVISIONS ON THE IMPORT OF SALT FOR INDUSTRIES AND POWER OF ATTORNEY TO ISSUE SALT IMPORT PERMITS.

Article 1

(1) The Minister of Industry and Trade shall make an exception to the ban on the import of salt to meet industries' demand for raw material/auxiliary material during the period of the ban on the import of salt set forth in Decree of the Minister of Industry and Trade No. 422/MPP/Kep/6/2004 on Grand Harvest Time of Smallholder Salt in 2004, on the stipulation that

a. The exception to the ban on the import of salt to meet industries' demand for a raw material/auxiliary material during the period of the ban on the import of salt shall only be given to the industries which have been declared as registered salt importers (IT) in accordance with Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 on Provisions on the Import of Salt as has been amended by Decree of the Minister of Industry and Trade No. 376/MPP/Kep/6/2004;
b. The salt referred to in letter a can only be imported by:
1) the relevant registered salt importers (IT) only for the production process of their industries and not for resale or trade;
2) the registered salt importers (IT) who have signed a sale purchase contract with other industries that cannot afford to import salt on their own and that the imported salt can be sold or transferred to the other industries.
c. The registered salt importers (IT) who have received an exception to the ban on the import of salt during the period of the ban on the import of salt shall serve as a buffer to the prices of local salt during the smallholder salt grand harvest time.

(2) The registered salt importers (IT) who wish to secure an exception to the ban on the import of salt during the period of the ban on the import of salt referred to in paragraph (1) shall first apply for an import permit in writing for any import of salt.

(3) Any import of salt that has secured an import permit referred to in paragraph (2) shall remain subject to the obligation of verification or technical trace in the country of loading pursuant to Article 11 of Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004, except if the imported salt arrives at an Indonesian port on August 31, 2004 at the latest according to the manifest.

(4) Provisions on exception of salt import during the period of prohibition to import salt as contemplated in paragraph (1) shall be valid only in 2004.

Article 2

(1) Stabilization of salt price on domestic market during grand harvest by registered importer which obtains exception of salt importas referred to in article 1 paragraph (1) point c, shall be done under the following conditions:

a. price stabilization shall be performed if the price of salt K1 and or K2 types (flour) at the pooling agent uploading at truck, fell below Rp.145,000 (one hundred forty five thousand rupiah) per ton and Rp.100,000 (one hundred thousand rupiah) per ton as mentioned in article 3 paragraph (3) Decree of Minister of Industry and Trade No. 360/MPP/Kep/5/2004.
b. Price stabilization shall be performed by all registered importer that has obtained import approval by:
1. buying salt from salt farmer/ domestic salt producer for raw material or
2. establishing cooperation with third party to buy domestic farmer/domestic salt producer for raw material.
c. The volume of salt that registered importer must buy referred to in point b shall correspond to the amount of salt that it imports or equivalent to the stock of the domestic salt farmer/ domestic salt producer for raw material.

(2) Registered importer obliged to stabilize price referred to in paragraph (1) shall submit:

a. Letter stating its readiness to stabilize domestic salt price or set up a cooperation with third party to purchase salt from farmers/ local salt producer of raw material;
b. Written report on price stabilization activity that it has performed.

Article 3

Any violation to provision referred to in article 1 and article 2 by salt registered importer which is granted import exception during the salt import ban period is subject to sanction by revocation of its import approval.

Article 4

(1) With the stipulation provision referred to in article 1, article 2 and article 3, pursuant to article 17 of Decree of Minister of Industry and Trade No. 360/MPP/Kep/5/2004 regarding Provision of Salt Import as amended with Decree of Minister of Industry and Trade No. 376/MPP/Kep/6/2004, Minister of Industry and Trade grants authority to Director General of Foreign Trade to issue and sign approval of salt import during the import ban period for registered salt importer.

(2) The authority referred to in paragraph (1) can not be delegated to other officials.

(3) Instruct the official referred to in paragraph (1) to carry out its duty based on the authority as set forth in Decree of Minister of Industry and Trade No. 360/MPP/Kep/5/2004 regarding Provision of Salt Import as amended with Decree of Minister of Industry and Trade No. 376/MPP/Kep/6/2004.

Article 5

Other provisions in the Decree of Minister of Industry and Trade No. 360/MPP/Kep/5/2004 regarding Provision of Salt Import as amended with Decree of Minister of Industry and Trade No. 376/MPP/Kep/6/2004, that do not violate this decree shall continue to apply.

Article 6

This Decree shall come into force as from the date of stipulation.

For public cognizance, this Decree shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On July 26, 2004
MINISTER OF INDUSTRY AND TRADE
RINI M SUMARNO SOEWANDI

DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 455/MPP/Kep/7/2004

CONCERNING EXCEPTION TO PROVISIONS ON THE IMPORT OF SALT FOR INDUSTRIES AND POWER OF ATTORNEY TO ISSUE SALT IMPORT PERMITS