REGULATION OF THE MINISTER OF FINANCE
NUMBER 134/PMK.011/2008

CONCERNING
GOVERNMENT BORNE IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO PRODUCE GOODS AND/OR SERVICES FOR PUBLIC INTEREST AND TO IMPROVE THE COMPETITIVENESS OF CERTAIN INDUSTRIAL SECTORS IN FISCAL YEAR 2008

THE MINISTER OF FINANCE,

Attachment

Considering:

• a. that in the framlework to fulfill the supply of goods and/or services for public interests, and to improve the competitiveness of certain industrial sectors domestically, it is necessary to provide fiscal incentive in the form of government borne import duty for certain industrial sectors in Fiscal Year 2008;
• b. that based on the consideration as described in a. and in the framework to exercise provisions of Article 3 parargraph (3) a. of Law No. 45/2007 concerning State Revenue and Expenditure Budget Year 2008 that is amended by Law No. 16/2008, it is necessary to stipulate Regulation of the Minister of Finance concerning Government Borne Import Duty of the Import of Goods and Materials to Produce Goods and/or Service for Public Interest and to Improve Competitiveness of Certain Industrial Sector in Fiscal Year 2008;

In view of:

• 1. Law No. 17/2003 concerning State Finance (State Gazette No. 47/2003, Supplement of State Gazette No. 4286);
• 2. Law No. 1/2004 concerning State Treasury (State Gazette No. 5/2004, Supplement of State Gazette No. 4355);
• 3. Law No. 45/2007 concerning State Revenue and Expenditure Budget Year 2008 (State Gazette No. 133/2007, Supplement of State Gazette No. 4778) that is amended by Law No. 16/2008 (State Gazette No. 63/2008, Supplement of State Gazette No. 4848);
• 4. Presidential Decision No. 20/P/2005;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING GOVERNMENT BORNE IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO PRODUCE GOODS AND/OR SERVICES FOR PUBLIC INTEREST AND TO IMPROVE THE COMPETITIVENESS OF CERTAIN INDUSTRIAL SECTORS IN FISCAL YEAR 2008

Article 1

In this Regulation:

1. "Government borne import duty" refers to payable import duty paid by the government with the amount of budget ceiling is Rp. 2,000,000,000,000.00 (two trillion rupiah) as described in Article 3 paragraph (3) a. of Law No. 45/2007 concerning State Revenue and Expenditure Budget Year 2008 that is amended by Law No. 16/2008.

2. "Certain Industrial Sector" refers to industrial deserving governmet borne import duty in accordance with policy on the development of the national industry as proposed by the Ministry/Agency as supervisor of the industrial sector.

3. "Goods and materials" refers to goods and materials including spare parts and components, that are processed, assembled, or installed to produce finished goods and/or services.

Article 2

(1) Government borne import duty may be granted to certain industrial sectors on the import of goods and materials used to produce goods and/or services with the following evaluation criteria:

• a. to meet the supply of goods and/or services for publid interest, consumed by the general public, and/or to protect consumers interest;
• b. to improve competitive power;
• c. to increase the absorption of manpower; and
• d. to increase the State revenue.

(2) Goods and materials as described in paragraph (1) shall meet the following provisions:

• a. not yet produced domestically;
• b. produced domestically, but not yet meeting the required specifications; or
• c. produced domestically but not yet in an amount meeting the requirements of indstries.

(3) The determination of the weight of each evaluation criteria as described in paragraph (1) is as stipulated in the Attachment to this Regulation of the Minister of Finance, that is inseparable part of this Regulation of the Minister of Finance.

Article 3

(1) To get government borne import duty as descrived in Article 2 paragraph (1), Minister/Head of Agency as supervisor of the industrial sector submit proposal to the Minister of Finance enclosed with:

• a. analysis and reasons for the necessary to be provided import duty borne by the Government, by observing the criteria as discribed in Article 2 paragraph (1);
• b. list of goods and materials with its technical specifications description, in accordance with the provisions of goods and materials as described in Article 2 paragraph (2); and
• c. proposal on the budget ceiling of the import duty to be borne by the Government for Fiscal Year 2008.

(2) In case proposal as described in paragraph (1) is approved, the Minister of Finance will issue a regulation of the Minister of Finance concerning import duty borne by Government on the import of goods and materials for certain industrial sector.

Article 4

The performance of this Regulation of the Minister of Finance shall be evaluated within a term of 3 (three) months at the latest from the stipulation of this Regulation of the Minister of Finance.

Article 5

The Director General of Budget and Director General of Treasury are hereby instructed to execute provisions of this Regulation of the Minister of Finance.

Article 6

This Regulation of the Minister of Finance commences to come into effect from the date of enactment until December 31, 2008.

For public cognizance, this Regulation of the Minister of Finance shall be announced in the State Gazette of the Republic Indonesia.

Stipulated in Jakarta
On September 19, 2008
THE MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI

ATTACHMENT

REGULATION OF THE MINISTER OF FINANCE NUMBER 134/PMK.011/2008 CONCERNING GOVERNMENT BORNE IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO PRODUCE GOODS AND/OR SERVICES FOR PUBLIC INTEREST AND TO IMPROVE THE COMPETITIVENESS OF CERTAIN INDUSTRIAL SECTORS IN FISCAL YEAR 2008

EVALUATION CRITERIA AND THE WEIGHT IN THE DETERMINATION OF THE RECIPIENTS OF GOVERNMENT BORNE IMPORT DUTY

Note:

• 1. Each criteria for certain industrial sector is valued 10-100.
• 2. The total value of certain industrial sector that can be granted import duty borned by the goernment shall be a minimum of 50.

THE MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI