JOINT DECREE OF THE MINISTER OF MINES AND ENERGY,
THE MINISTER OF FINANCE AND
THE MINISTRY OF INDUSTRY AND TRADE
NO. 1122.K/92/M.PE/1997,
NO. 321/KMK.01/1997 AND
NO. 251/MPP/KEP/7/1997

ON
THE PROCEDURE FOR THE SETTLEMENT OF THE IMPORT OF GOODS
USED FOR NATURAL OIL AND GAS MINING OPERATIONS AND
EXPLOITATION OF GEOTHERMAL RESOURCES

THE MINISTER OF MINES AND ENERGY,
THE MINISTER OF FINANCE AND
THE MINISTER OF INDUSTRY AND TRADE

Considering:

In view of:

DECIDES:

To stipulate:

A JOINT DECREE OF THE MINISTER OF MINES AND ENERGY, THE MINISTER OF FINANCE AND THE MINISTER OF INDUSTRY AND TRADE ON THE PROCEDURE FOR AND THE SETTLEMENT OF THE IMPORT OF GOODS USED FOR NATURAL OIL AND GAS MINING OPERATIONS AND EXPLOITATION OF GEOTHERMAL RESOURCES

CHAPTER I
GENERAL PROVISIONS

Article 1

Referred to in this joint decree as:

Article 2

(1) Operational goods as meant in Article 1 letter a shall comprise:

(2) The import of operational goods of category II as meant in sub-article (1) letter b shall be conducted by surrendering a written guarantee from Pertamina.

(3) The import of operational goods of category 11 as meant in sub-article (2) may include spare parts in a proper quantity in accordance with the standard/manual of the machinery/equipment imported and set forth in the RIB/ML concerned.

(4) It is mandatory that operational goods of category If should be re-exported or dispatched to the Bonded Zone of Batam Island Industrial Area at the latest on the date when the license on their use expires or after they have been used prior to the expiry date.

(5) In the event that the operational goods of category If are not re-exported or dispatched to the Bonded Zone of Batam Island Industrial Area as meant in sub-article (4), payment i; mandatory of the import duties and taxes in the framework of import and the administrative fine amounting to 100% of the import duty which should otherwise be paid and which are borne by the company concerned.

(6) The collection of the payment of import duties and taxes in the framework of import as meant in sub-article (4) shall be conveyed by DJBC to Pertamina.

(7) It is mandatory that the collection as meant in sub-article (5) should be paid by the Company within a maximum period of 30 (thirty) days as from the date when the facilities of postponement expire.

(8) In the event that the Company has not made payment within the period of time already stipulated, the collection shall, pursuant to the prevailing provisions, incur an interest.

CHAPTER II
IMPLEMENTATION AND SETTLEMENT OF IMPORT OF OPERATIONAL GOODS

Article 3

(1) Prior to conducting an import, the Company shall draw up a Plan on the Import of Goods or a Master list, hereinafter referred to as RIB/ML, in 6 (six) fold, containing a description of the operational goods for a period of 3 (three) months and shall submit it to DJMGB with a provision that in the case of a contractor a copy of this shall have to be submitted to Pertamina.

(2) The drawing up of RIB/ML as meant in sub-article (1) shall be conducted with priority being given to the appreciation for the use of domestically produced goods and services.

(3) The RI B/ML as meant in sub-article (1) shall contain details of the categorization of operational goods with the setting forth of the types, quantities, prices, purpose of use and locations of use of the operational goods concerned.

(4) The Director General of Natural Oil and Gas or an official appointed to validate RIB/ML as meant In sub-article (1) shall within a maximum period of 2 (two) weeks after the receipt of RIB/ML concerned and send it to DJBC with a copy being addressed to the Company.

(5) Within a maximum period of 2 (two) weeks after the receipt of RIB/ML as meant in sub-article (3), the Director General of Customs and Excise or an appointed official shall on behalf of the Minister of Finance grant customs facilities in respect of the operational goods in accordance with the RIB/MIL concerned on the basis of the prevailing customs laws.

(6) As for RIB/ML to which the customs facilities as meant in sub-article (5) have been granted, DJBC shall distribute the RIB/ML concerned to DJMGB, Pertamina, the customs office of entry and the contractor with a copy being addressed to Pertamina.

(7) The RIB/ML already validated as meant in sub-articles (4) and (5) shall be valid for 6 (six) months as of the date of validation.

(8) The Company may file an application for an extension of the validity of RIB/ML as meant in sub-article (7) and give the reasons for this.

(9) In the event that there is a difference in the categorization of operational goods, DJBC shall return the RIB/ML concerned to DJMGB in order that it may be reviewed.

Article 4

(1) The provision on goods the import trading system of which has been regulated shall not apply to the import of operational goods of category II.

(2) In the event that the import of operational goods of category I include used goods and or those of which the import trading system has been regulated, the Company shall be obligated to obtain first the approval of the Director General of International Trade.

(3) Within a maximum period of t (one) week after the receipt of the application for an approval in complete and correct order, the Director General of International Trade or an appointed official shall be obligated to make a decision.

(4) If within the period of time as meant in sub-article (3) the Director General of International Trade or an appointed official has not made his decision, the application is considered as having been approved.

(5) The approval of the Director General of International Trade as meant in sub-article (2) shall not be needed in the event that the import of operational goods of category I is conducted by an appointed importer.

Article 5

(1) In the implementation of the import of operational goods, the Company shall be obligated to forward to the customs office of entry an import declaration (PI B) signed by Pertamina or its contractor or an official appointed on behalf of Pertamina with a legal letter of attorney, to which other customs complementary documents shall be attached, with the number and date of the validation of RIB/ML and the code of material identification already validated and or a copy of RIB/ML concerned being mentioned.

(2) The PIB as meant in sub-article (1) may be forwarded prior to the arrival of the operational goods at the port of destination and through electronic media.

(3) In a maximum period of 1 (one) week after the receipt of import documents in complete and correct order, the local customs office shall settle the import of operational goods as meant in sub-articles (1) and (2) pursuant to the prevailing laws.

Article 6

The Company shall be obligated to submit a report on the realization of the import of operational goods periodically, that is once in 3 (three) months, to DJMGB and DJBC with a copy being addressed to Pertamina in accordance with the model of the report as set forth in Attachment II to this joint decree.

Article 7

(1) In the event that there is a plan for the import of operational goods which is not set forth in RIB/ML, the Company shall be obligated to file first an application for additional RIB/ML in accordance with the procedure as meant in Article 3.

(2) In the event of an emergency which requires the import of operational goods, the Company shall be obligated to file an application in the form of an invoice or a perform invoice to DJMGB in order that the category of the operational goods may be determined.

(3) The Company may undertake the import of operational goods at a local customs office after the category of the operational goods has been determined by DJMGB.

(4) The company shall be obligated to submit a report to DJBC and DJMGB with a 'copy being addressed to Pertamina regarding the implementation of the import of operational goods as meant in sub-article (3).

Article 8

DJMGB shall be obligated to use the service of a government-appointed surveyor in the framework of the implementation of the process of RIB/ML validation.

CHAPTER III
USE, MOVEMENT, TRANSFER AND EXTENSION OF USE OF OPERATIONAL GOODS OF CATEGORY II

Article 9

(1) Operational goods of category II shall be used at the location as set forth in RIB/ML for a period of 1 (one) year as from-the cite of PIB and this use may be extended twice for a maximum period of 1 (one) year each time.

(2) With regard to the extension of the period of use of operational goods of category II as meant in sub-article (1), the Company shall file an application for extension to the head of the local customs office, giving his reasons and evidences, among other things a valid work contract or a Letter of Intent (LI) at the latest 1 (one) month prior to the expiration, with a copy each being addressed to DJBC, DJMGB and Pertamina.

(3) Within a maximum period of 2 (two) weeks prior to expiration, the head of the local customs office shall be obligated to make a decision.

(4) If within the period of time as meant in sub-article (3), the head of a local customs office has not made a decision, the application for extension shall be considered as having been approved.

(5) In the event that the PIB is made at the Bonded Zone of Batam Island Industrial Area, the decision on the extension of use of operational goods of category 11 may be made by the customs office of the place where the goods are used and the copy shall be addressed to Batam Customs Office.

Article 10

(1) Extension of the period of time for the use of operational goods of category II in excess of the period of time as meant in Article 9 sub-article (1) shall be granted by the Director General of Customs and Excise or an appointed official after obtaining a recommendation from DJMGB.

(2) Prior to the granting of the approval of extension as meant in sub-article (1), the Company, with the approval of Pertamina, shall file an application for extension to DJBC through the local customs office, giving the reasons and evidences encompassing among other things a valid work contract or a Letter of Intent (LI) with a copy being addressed to DJMGB within a maximum period of 2 (two) months prior to expiration.

(3) Within a maximum period of 2 (two) weeks after the receipt of the copy of the application as meant in sub-article (2), DJMGB shall be obligated to give a recommendation to DJBC.

(4) Within a maximum period of 2 (two) weeks after the receipt of the application, the local customs office shall give its opinion to DJBC.

(5) Within a maximum period of 2 (two) weeks after the receipt of the application and the recommendation, DJBC shall be obligated to make a decision.

(6) If within the period of time as meant in sub-article (5), DJBC has not made a decision, the application for extension shall be considered as having been approved.

Article 11

(1) In the event that the location of the operational goods of category II is moved, the Company shall, after obtaining an approval from Pertamina, file an application for movement to the head of a local customs office with copies being addressed to the customs office of destination and DJMGB or in the event that the PIB of the operational goods of category II is registered at the customs office of Batam, the coy of the application shall also be filed to the customs office of Batam.

(2) The application as meant in sub-article (1) shall be filed by the Company within a maximum period of 1 (one) month prior to the Implementation of the movement.

(3) Within a maximum period of 2 (two) weeks after the receipt of the application, the head of the customs office shall be obligated to make a decision and in the event that the PIB is registered at the customs office of Batam, a copy of the decision shall also be forwarded to the customs office of Batam.

(4) If within the period of time as meant In sub-article (3), the head of the customs office has not made a decision, the application for movement shall be considered as having been approved.

(5) If within a period of 2 (two) months as from the date of the receipt of the decision the Company has not Implemented the movement of the operational goods of category II, the decision on the movement shall be declared null and void.

Article 12

(1) In the event of emergency, the Company may move the location of the operational goods of category II.

(2) It Is mandatory that the movement of the location of the operational goods of category 11 as meant in sub.-article (1) should be notified to the local customs office at the latest 3 (three) working days after the movement is Implemented.

Article 13

(1) In the event that the responsibility over the operational goods of category II is transferred, the Company shall be obligated to fire. file an application for approval from DJMGB, with the following being attached:

(2) After an examination and within a maximum period of 2 (two) weeks after the receipt of the application, DJMGB shall pass on the application as meant in sub-article Q to DJBC.

(3) Within a maximum period of 2 (two) weeks after the receipt of the application, DJBC shall make a decision with a copy each being addressed to DJMGB and Pertamina.

(4) If within the period as meant in sub-article (3) DJBC has not made a decision, the application for the transfer of responsibility shall be considered as having been approved.

Article 14

(1) The transportation of operational goods of category II for the movement of location shall be conducted using a BC.1.2. form as set forth in Attachment III to this joint decree.

(2) At the site where the operational goods of category II shall arrive, the Company shall forward a PIB in substitute to the local customs office.

(3) In the event of the transportation of operational goods of category II for the movement of location with the PIB being forwarded to the customs office of Batam, this transportation shall be conducted with a copy of the PIB concerned already validated by the customs office of Batam and no PIB in substitute shall be required at the customs office of destination.

CHAPTER IV
SETTLEMENT OF THE RE-EXPORT OF
OPERATIONAL GOODS OF CATEGORY II

Article 15

The re-export of operational goods of category II shall be implemented by the Company with the forwarding of a declaration along with the Declaration of the Export of Specific Goods (PEBT) to the local customs office with the PIB or the PIB in substitute being attached.

Article 16

Within a maximum period of 1 (one) month after the implementation of the re-export of operational goods of category II, the Company shall be obligated to submit a report on the realization of re-export of operational goods of category II in accordance with the form of the report as set forth in Attachment IB to this joint decree to DJMGB and DJBC with a copy being addressed to Pertamina.

CHAPTER V
PROCEDURE FOR THE ENTRY AND RELEASE OF
OPERATIONAL GOODS IN THE BONDED ZONE OF
BATAM ISLAND INDUSTRIAL AREA

Article 17

The entry of operational goods the customs obligations of which have not been settled from outside the Indonesian customs areas or from other Indonesian customs areas into the Bonded Zone of Batam Island Industrial Area shall be Implemented using an E/BZ Form as set forth in Attachment B to this joint decree and with the customs complementary documents being attached.

Article 18

(1) In implementing the entry of operational goods Into an Indonesian customs area from the Bonded Zone of Batam Island Industrial Area, the customs declaration may be forwarded at the local customs office or at the customs office of destination.

(2) In the event that the entry of operational goods is implemented at the customs office of Batam, the Company shall forward the PIB as meant in Article 5 sub-article (1) with the E/BZ form being attached and the number and date of RIB/ML validation and the validated code of material Identification being mentioned.

(3) In the event that the entry of operational goods being implemented a+ the customs office of destination, the Company shall forward the PIB as meant in Article 5 sub-article (1) with the BC.1.2 Form being attached and the number and date of RIB/ML validation and the validated code of material identification being mentioned.

Article 19

(1) Within a maximum period of 1 (one) week after the receipt in complete and correct order of the PIB on operational goods of category I, the local customs office shall conduct the settlement of import pursuant to the prevailing laws.

(2) Within a maximum period of 2 (two) weeks after the receipt in complete and correct order of the PIB on operational goods of category 11, the customs office shall conduct the settlement of import pursuant to the prevailing laws.

Article 20

(1) The transportation of operational goods of category II whose entry is made through the Bonded Zone of Batam Island Industrial Area and whose import has been settled at the customs office of Batam, shall be conducted with a copy of the PIB concerned already validated by the customs office of Batam being used as the document to cover the transportation.

(2) No PIB in substitute shall be required at the customs office of destination where the operational goods of category II shall be used.

(3) The Company shall be obligated to report to the customs office of destination the receipt of operational goods of category ll at the location where they shall be used.

(4) The transportation of operational goods of category II whose entry is made through the Bonded Zone of Batam Island Industrial Area and whose import settlement is implemented at the customs office of destination shall be conducted with the BC.1.2. Form being used as a covering document.

Article 21

(1) Operational goods of category 11 which have already been used prior to expiration or whose license on their use has expired may be re-dispatched to the Bonded Zone of Batam Island Industrial Area.

(2) The re-dispatch of operational goods as meant in sub-article (1) shall be conducted by means of filing an application and forwarding a PEBT to the local customs office.

(3) The entry of operational goods into the Bonded Zone of Batam Island Industrial Area shall be conducted by completing the E/BZ Form.

(4) The re-dispatch of operational goods of category II as meant in sub-article (1) shall be considered as having been re-exported.

Article 22

(1) After obtaining the approval from Pertamina, the Company may take operational goods of category I into Batam Island Industrial Area in order to be stored by submitting a letter of notification in accordance with the model as set forth in Attachment VI to this joint decree to the customs office of Batam.

(2) The company shall submit a declaration of release of operational goods of category I as meant in sub-article (1) to the customs office of Batam with the approval from Peramina and a copy of the letter of notification being attached.

CHAPTER VI
REPAIR AND REPLACEMENT ABROAD
OF OPERATIONAL GOODS OF CATEGORY I

Article 23

(1) The company may send operational goods of category I abroad or to the Bonded Zone of Batam Island Industrial Area for repair and replacement because of misconsignment after first filing an application for approval by forwarding a PEBT completed with notes about the condition of the goods concerned to the local customs office with copies to be addressed to DJMGB, DJBC and Pertamina.

(2) Within a maximum period of 3 (three) working days, the head of the local customs office shall give his approval of the repair or replacement of operational goods of category f as meant in sub-article (1), using a PEBT in accordance with the prevailing export management.

(3) The entry of operational goods of category I as meant in sub-article (1) to the Bonded Zone of Batam Island Industrial Area shall be implemented pursuant to the stipulations prevailing in the Bonded Zone of Batam Island Industrial Area.

Article 24

(1) Within a maximum period of 6 (six) months after the date on which the license is granted, the Company shall be obligated to re-import operational goods of category I which have been repaired to an Indonesian customs area.

(2) To re-import operational goods of category I as meant in sub-article (t), the Company shall be obligated to file an amendment to the RIB/ML which refers to the validation of the old RIB/ML and at the time of the entry of the goods this shall be completed with the PIB as meant in Article 5 sub-article (1) with a copy of the approval of the dispatch abroad from the local customs office being attached.

(3) It is obligatory that the amendment to the RIB/ML as meant in sub-article (2) should contain the names of the goods undergoing repair with the added value of the goods concerned being mentioned.

(4) In the event that the operational goods of category I which have been repaired are taken into the Bonded Zone of Batam Island Industrial Area, the Company shall be obligated to convey a copy of PEBT and use the E/BZ Form in implementing this.

Article 25

(1) Within a maximum period of 6 (six) months after the date on which the license is granted, the Company shall be obligated to re-import operational goods of category I already replaced into an Indonesian customs area.

(2) To re-import operational goods of category I as meant in sub-article (t), the Company shall be obligated to forward the PIB as meant in Article 5 sub-article (1) with a copy of the approval of a dispatch abroad from the local customs office and a copy of the validation of RIB/ML being attached.

(3) In the event that operational goods of category I which have been replaced are taken into the Bonded Zone of Batam Island Industrial Area, the Company shall be obligated to forward a copy of PEBT and use the E/BZ Form in Implementing this.

Article 26

The re-Import of operational goods of category 1 as meant in Articles 24 and 25 into an Indonesian customs area or the Bonded Zone of Batam Island Industrial Area shall be conducted pursuant to the prevailing customs provisions.

CHAPTER VII
GRANT, TRANSFER AND SALE
OF OPERATIONAL GOODS

Article 27

The grant or sale of operational goods of category I by Pertamina to another party shall be subject to the Imposition of import duties and taxes in the framework of import pursuant to the prevailing provisions.

Article 28

The transfer of status of operational goods of category II so that they shall become the asset of another party shall be subject to the imposition of import duties and taxes in the framework of imports pursuant to the prevailing provision.

Article 29

It is obligatory that the grant or sale or transfer of status of operational goods of category II which constitute used goods and or goods whose import trading system is regulated should first be permitted by DJPI.

Article 30

The grant or sale or transfer of status of operational goods may be conducted after the payment of the import duties and taxes in the framework of import have been paid up pursuant to the prevailing stipulations.

CHAPTER VIII
SETTLEMENT OF OPERATIONAL GOODS OF CATEGORY II
OWING TO FORCE MAJEURE

Article 31

Operational goods of category II which are lost in hole or which cannot be exported outside an Indonesian customs area or re-dispatched to the Bonded Zone of Batam Island Industrial Area owing to force maJeure shall not be subject to the imposition of import duties and taxes in the framework of import.

Article 32

(1) It is obligatory that the force majeure as meant in Article 31 should be notified by the Company to the local customs office with copies to be addressed to DJBC, DJMGB and Pertamina within a maximum period of 7 (seven) working days after the force majeure takes place.

(2) The Company shall, within a maximum period of 1 (one) month after the occurrence of a force majeure, be obligated to file an application for the exemption of import duties and taxes in the framework of import to the Minister of Finance through the local customs office, attaching thereto complete supporting documents.

(3) The local customs office shall, within a maximum period of 2 (two) weeks after the receipt of the application for the exemption of the import duties and taxes in the framework of import as meant In sub-article (2), give his recommendation to the Director General of Customs and Excise.

(4) Within a maximum period of 2 (two) weeks after the receipt of the application for the exemption of Import duties and taxes in the framework of import and the recommendation as meant in sub-article (3), the Director General of Customs and Excise shall, on behalf of the Minister of Finance, be obligated to make a decision.

(5) If within the period of time as meant in sub-article (4) DJBC has not made a decision, the application for the exemption of import duties and taxes in the framework of Import shall be considered as having been accepted.

Article 33

In the even? that the Company submits a report about force majeure after the passage of the period of time as meant In Article 32 sub-article (1), the Company shall be obligated to pay the Import duties and taxes in the framework of import pursuant to the prevailing stipulations.

CHAPTER IX
TRANSITIONAL PROVISION AND CLOSING

Article 34

With the enforcement of this joint decree, RIB/ML which has been validated shall remain valid and the settlement of import shall be implemented pursuant to this joint decree and all prevailing laws.

Article 35

With the enforcement of this joint decree:

Article 36

Further provisions needed for the enforcement of this joint decree shall be regulated by the Director General of Natural Oil and Gas and the Director General of Customs and Excise, either jointly or separately, in accordance with their respective areas of duties.

For public cognizance, this joint decree shall be published in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On July 18, 1997
THE MINISTER OF MINES AND ENERGY
sgd.
LB. SUDJANA
THE MINISTER OF INDUSTRY AND TRADE
sgd.
T. ARIWIBOWO
THE MINISTER OF FINANCE
sgd.
MAR'IE MUHAMMAD