a. that in an effort to increase the competitive edge of domestic heavy equipment industry, it is necessary to provide fiscal incentives in the form of government borne duties on the import of goods and materials to make certain parts of heavy equipment and/or manufacture heavy equipment by heavy equipment industries;
b. that based on certainty in Article 2 of Regulation of The Minister of Finance No. 134/PMK.011/2008 concerning Government Borne Duties on the Import of Goods and Materials for the Manufacture of Goods and/or Services to Serve the Public Interests and Improve the Competitive Edge of Industries in Certain Sectors for Budget Year 2008, import goods and material to make certain parts of heavy equipment and/or manufacture heavy equipment by heavy equipment industries can get fiscal incentive of government borne duties;
c. that based on consideration in paragraphs a and b, it is necessary to stipulate Regulation of The Minister of Finance on Government Borne Duties on the Import of Goods and Materials to Make Certain Parts of Heavy Equipment and/or Manufacture Heavy Equipment by Heavy Equipment Industries in Budget Year 2008;
1. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
2. Law No. 17/2003 concerning State Finance (Statute Book No. 47/2003, Supplement to Statute Book No. 4286);
3. Law No. 1/2004 concerning State Treasury (Statute Book No. 5/2004, Supplement to Statute Book No. 4355);
4. Law No. 45/2007 concerning State Budget of Revenue and Expenses of Fiscal Year 2008 (Statute Book No. 133/2007, Supplement to Statute Book No. 4778) as amended by Law No. 16/2008 (Statute Book No. 63/2008, Supplement to Statute Book No. 4848);
5. Presidential Decree No. 20/P/2005;
6. Regulation of The Minister of Finance No. 134/PMK.011/2008 concerning Government Borne Duties on the Import of Goods and Materials for the Manufacture of Goods and/or Services to Serve the Public Interests and Improve the Competitive Edge of Industries in Certain Sectors for Budget Year 2008;
REGULATION OF THE MINISTER OF FINANCE CONCERNING GOVERNMENT BORNE DUTIES ON THE IMPORT OF GOODS AND MATERIALS TO MAKE CERTAIN PARTS OF HEAVY EQUIPMENT AND/OR MANUFACTURE HEAVY EQUIPMENT BY HEAVY EQUIPMENT INDUSTRIES IN BUDGET YEAR 2008
In this Regulation:
1. Companies are commercial engaged in make certain parts of heavy equipment and/or manufacture heavy equipments.
2. Goods and materials to make certain parts of heavy equipment and/or to manufacture heavy equipment hereinafter called goods and materials, are goods and materials in every kinds and composition include components to be processed, manufactured, or installed for make certain parts of heavy equipment and/or to manufacture heavy equipment.
(1) The import of goods and materials as lay down in Attachment to this Regulation of The Minister of Finance which is an integral part of this Regulation of the Minister of Finance, shall be granted government borne duties.
(2) The government borne duties as intended in paragraph (1) shall be granted with a budget ceiling of Rp 160,000,000,000.00 (one hundred and sixty billion rupiahs).
(3) The budget allocations for the government borne duties with the ceiling as intended in paragraph (2) for companies shall be set by the Director General of Metal, Machines, Textile and Multifarious Industry, Ministry of Industry as the proxy of budget user.
(1) To obtain the government borne duties as intended in Article 2, companies shall file applications to the Director General of Customs and Excise by enclosing a plan for import of goods (RIB) already approved and validated by the Director General of Metal, Machines, Textile and Multifarious Industry, Ministry of Industry.
(2) Plan for import of goods as intended in paragraph (1) shall at least contains the following data:
(1) The Director General of Customs and Excise shall approve or reject the applications as intended in Article 3 no later than 14 (fourteen) days after the applications have been received in a complete manner.
(2) If the applications as intended in paragraph (1) are approved, the Director General of Customs and Excise on behalf of The Minister of Finance shall issue Decision of The Minister of Finance concerning government borne duties on the import of goods and materials to make certain parts of heavy equipment and/or manufacture heavy equipment for certain company.
(3) If the applications as intended in paragraph (1) are not approved, the Director General of Customs and Excise on behalf of The Minister of Finance shall issue rejection letter.
(1) In connection with the import of goods and materials granted government borne duties under Decree of The Minister of Finance as intended in Article 4 paragraph (2) the Customs and Excise Supervisory and Service Office or Primary Service Office concerned shall put a stamp "GOVERNMENT BORNE DUTIES BASED ON REGULATION OF THE MINISTER OF FINANCE NO. 143/PMK.011/2008" on all sheets of import customs notification.
(2) The import customs notification as intended in paragraph (1) shall be used as the basis for the recording of receipts from government borne duties and allocated as expenditure of tax subsidy in the same amount.
The reporting and accountability of the government borne duties as intended in Article 2 follow Regulation of The Minister of Finance on the accounting and reporting systems of the central government's finance.
(1) The goods and materials imported by the companies as intended in Article 4 paragraph (2) shall be used by the relevant companies and shall not be transferred to other party.
(2) The companies abusing provisions in paragraph (1) shall pay actual import duties plus 2% (two percent) interest per month for a maximum of 24 (twenty four) months since the import as intended in Article 5 paragraph (1) is realized.
The Director General of Customs and Excise is instructed to implement this Regulation of The Minister of Finance.
This Regulation of The Minister of Finance shall be subject to evaluation no later than 3 (three) months after this Regulation of The Minister of Finance is stipulated.
This Regulation of The Minister of Finance shall come into force as from the date of stipulation and be valid until December 31, 2008.
For public cognizance, this Regulation of The Minister of Finance shall be announced by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on October 7, 2008
MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI