REGULATION OF THE MINISTER OF FINANCE
No. 241/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 2009

THE MINISTER OF FINANCE,

Considering:

a. that in the framework 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 2009;

b. that based on the consideration as intended in a. and in the framework to exercise provisions of Article 3 paragraph (3) a. of Law No. 41/2008 concerning State Revenue and Expenditure Budget Year 2009, 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 2009;

In view of:

1. Law No. 17/2003 concerning State Finance (Statute Book No. 47/2003, Supplement to Statute Book No. 4286);

2. Law No. 1/2004 concerning State Treasury (Statute Book No. 5/2004, Supplement to Statute Book No. 4355);

3. Law No. 41/2008 concerning State Revenue and Expenditure Budget Year 2009 (Statute Book No. 171/2008, Supplement to Statute Book No. 4920);

4. Presidential Decree 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 2009

Article 1

In this Regulation:

1. Government borne import duty is payable import duty paid by the government with the amount of budget ceiling is Rp. 2,500,000,000,000.00 (two trillion five hundred billion rupiah) as intended in Article 3 paragraph (3) a. of Law No. 41/2008 concerning State Revenue and Expenditure Budget Year 2009.

2. Certain Industrial Sector is industrial deserving government 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 are 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 public 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 intended 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 industries.

(3) The determination of the weight of each evaluation criteria as intended 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) Proposal to get government borne import duty as intended in Article 2 paragraph (1) for certain industrial sector, shall be submitted by the Minister/Head of Agency as supervisor of the industrial sector 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 intended 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 intended 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 2009.

(2) In case proposal as intended 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 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 January 1, 2009 until December 31, 2009.

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 December 31, 2008
MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI

ATTACHMENT

REGULATION OF THE MINISTER OF FINANCE No. 241/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 2009

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

NO.	CRITERIA	WEIGHT (%)
1	Public interest, consumed by the general public, and/or to protect consumers interest	40
2	to improve competitive power	30
3	to increase the absorption of manpower, and	20
4	to increase the State revenue	10
	Total weight of all criteria	100

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 borne by the government shall be a minimum of 50.

The MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI