REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
No. 29/2004

CONCERNING
HIGH TECHNOLOGY PRODUCTION FACILITIES FOR OPTICAL DISC

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Elucidation

Considering:

that in the framework to implement provision in Article 28 of Law No. 19/2002 concerning Copy Right and to prevent distribution of illegal Optical Disc that may make injury for Copy Right Owner, and to avoid unfair competition of domestic Optical Disc trading, it is necessary to stipulate Government Regulation concerning High Technology Production Facilities for Optical Disc.

In view of:

1. Article 5 paragraph (2) of 1945 Constitution as amended by Fourth Amendment of 1945 Constitution;

2. Law No. 19/2002 concerning Copy Right (Statute Book No. 85/2002, Supplement to Statute Book No. 4220);

HAS DECIDED:

To stipulate:

GOVERNMENT REGULATION CONCERNING HIGH TECHNOLOGY PRODUCTION FACILITIES FOR OPTICAL DISC.

CHAPTER I
GENERAL PROVISION

Article 1

In this Government Regulation:

1. Optical Disc is all types of recording media in the form of discs that can be filled with or contain information in the form of sound, music, film or other data that can be read through an optical scanning technology mechanism using a high intensity ray source such as laser.

2. Optical Disc Producing Facilities are all models of media used in the production of Unrecorded Optical Discs and/or Recorded Optical Discs covering machines, appliances, and raw materials.

3. Unrecorded Optical Discs are Optical Discs that do not contain data as the final result of a production process.

4. Recorded Optical Disks are Optical Disks that contain data, both music or film or the others, as the final result of a high technology production process.

5. Machines and appliances are all kinds of machines and appliances used in the production of Unrecorded Optical Discs and/or Recorded Optical Discs.

6. The procurement of Optical Discs means an act of providing Recorded Optical Discs and/or Unrecorded Optical Discs for further marketing or process (especially for Unrecorded Optical Discs).

7. Raw Materials are all kinds of materials that can be used in the production of Unrecorded Optical Discs and/or Recorded Optical Discs.

8. Production Codes are source identification codes consisting of stamper codes and mould codes.

9. Business Agents are individuals or corporate bodies that are set up and domiciled or carry out business activities in the territory of the Republic of Indonesia, either individually or jointly, through a business contract in various economic fields.

10. Minister is the minister whose tasks and responsibilities cover industry and trade.

CHAPTER II
TYPES AND PRODUCTION FACILITIES

Article 2

(1) The types of Optical Discs shall cover:

• a. Compact Disc (CD);
• b. Compact Disc Digital Audio (CD-DA);
• c. Compact Disc Read Only Memory (CD-ROM);
• d. Compact Disc Recordable (CD-R);
• e. Compact Disc Re-Writeable (CD-RW);
• f. Compact Disc Write Once (CD-WO);
• g. Digital Video/Versatile Disc (DVD);
• h. Digital Video Disc Read Only Memory (DVD-ROM);
• i. Digital Video Disc Random Access Memory (DVD-RAM);
• j. Digital Video Disc Re-Writeable (DVD-RW);
• k. Laser Disc (LD);
• I. Mini Disc (MD);
• m. Video Compact Disc (VCD);
• n. China Video Disc (CVD);
• o. Super Video Compact Disc (SVCD);
• p. Compact Disc Interactive (CDI);
• q. Compact Disc Photo (CDP);
• r. Digital Versatile Disc Recordable (DVD-R);
• s. Super Audio Compact Disc (SACD);
• t. Other Optical Discs based on advanced technology.

(2) The specifications of other Optical Discs as intended in paragraph (1) t will be stipulated further in a Ministerial Decree.

Article 3

Optical Disc producing facilities shall cover:

(1) Optical Disc producing machines and appliances consisting of:

• a. mastering appliance made of glass and other materials used for producing Optical Discs;
• b. stamper or parts made of metal and other materials used for producing Optical Discs;
• c. recorder using laser ray;
• d. conditional processing system for a recorder using laser;
• e. appliance for turning the layers of mastering appliance made of glass with portrait-resistant layer;
• f, electron-shaping appliance used for producing stampers in the manufacture of Optical Discs;
• g. direct stamper producing appliance or parts made of other metal used for producing Optical Discs;
• h. Optical Disc duplicate assembling production lines;
• i. injected molding machines and other machines used to replicate Optical Discs;
• j. moulds and components thereof used for producing Optical Discs;
• k. appliances used for assembling Optical Disc layers;
• l. metaliser to add layers to reflect light on the Optical Disc;
• m. appliance for turning Optical Disc layers with a varnish layer;
• n. Joined Optical Disc imitative cables;
• o. appliance for increasing Optical Disc capacity; and/or
• p. other machines and appliances used for producing Optical Disc masters and finished goods.

(2) Raw materials for producing Optical Discs consisting of:

• a. polycarbonate with optical grade specifications;
• b. polycarbonate other than that referred to in letter a; and/or
• c. other materials used for producing Optical Discs.

CHAPTER III
PRODUCTION CODE

Article 4

(1) Each Recorded Optical Disc producing facility shall bear accredited and internationally-accepted production codes.

(2)The production codes specified in paragraph (1) shall consist of:

• a. stamper code that must clearly be stamped and read on each stamper;
• b. mould code that must be engraved on each mould, either that installed to or that not installed to the machine and appliance.

(3)The production codes specified in paragraph (2) must be stamped on each Recorded Optical Disc.

Article 5

Imported Recorded Optical Disc shall has production code issued by origin country, consists of:

• a. stamped code;
• b. printing code.

Article 6

Imported stampers shall bear stamper codes that must be clearly stamped and read.

Article 7

The production codes owned by Optical Disc producers shall be registered with the agency in charge of Industry and trade.

Article 8

Each Optical Disc producer shall put up a name board that contains full name, address, phone number, and business permit number.

CHAPTER IV
PROCUREMENT OF PRODUCTION FACILITIES

Article 9

The procurement of Machines and Production Facilities as well as Raw Materials specified in Article 3 paragraph (1) and paragraph (2) shall secure a permit from the Minister.

Article 10

The procurement of Unrecorded and/or Recorded Optical Discs may be met by domestic and/or imported Optical Discs.

Article 11

(1) Machines and other production facilities can be imported by Registered Importers (IT) who are in the possession of registered Importer's Identification Number.

(2) Raw materials for producing Optical Discs can only be imported by Registered Importers (IT) who are in the possession of registered Importer's Identification Number.

(3) The importers of Unrecorded Optical Discs specified in Article 10 shall be in the possession of registered Importer's Identification Number.

(4) The importers of Recorded Optical Discs specified in Article 10 shall meet the following requirements:

• a. holding Optical Disc Importer's Identification Number;
• b. holding a license from the Copy Rights Owner.

(5) The provisions on the importation of machines and appliances specified in Article 3 paragraph (1) and the importation of raw materials specified in Article 3 paragraph (2), and the importation of Unrecorded and Recorded Optical Discs specified in paragraph (3) and paragraph (4) will be stipulated in a Ministerial Decree.

Article 12

(1) Optical Disc producers that have machines and appliances shall register with the Minister.

(2) Optical Disc producers that intend to transfer machines and appliances shall report to the Minister.

CHAPTER V
REPORTING AND SUPERVISION

Article 13

(1) Optical Disc producers shall periodically submit reports on their production activities to the Minister.

(2) The reports specified in paragraph (1) shall cover raw materials, stampers, machines and appliances as well as Optical Disc products in connection with:

• a. the purchase and use of raw materials;
• b. the lease and transfer of machines;
• c. specimen goods of each Optical Disc produced;
• d. the quantity of products, the number of production orders received from customers, and the destruction of failed products; and
• e. the quantity of products delivered to customers for domestic circulation and export and the existing stocks.

(3) The documents related to the reports specified in paragraph (2) shall always be made available and kept for at least 3 (three) years after the reports have been submitted for the purpose of audit.

Article 14

The model of reports specified in Article 13 is to be laid down in a Ministerial Decree.

Article 15

(1) The supervision of Optical Disc industry shall be conducted based on the reports specified in Article 13.

(2) The supervision specified in paragraph (1) shall cover:

• a. the audit of documents used in the periodical reports specified in Article 13 to see if they have been complete;
• b. the audit of the use of production codes specified in Article 4; and
• c. the audit of the certificates of passing a censorship issued by the competent agency, especially for audio visual Optical Discs.

(3) The competent agency shall supervise the appropriateness and truth of the importation of Optical Discs and the circulation of Optical Discs for domestic consumption and export.

(4) The Minister shall be responsible for the supervision specified in paragraph (1), paragraph (2), and paragraph (3).

Article 16

The competent agency can conduct supervision any time without prior notification in accordance with its authority.

Article 17

Any Optical Disc producer believed to have committed the violation specified in Article 15 and Article 16 may be investigated by police investigators and/or civilian investigators in accordance with the existing law.

CHAPTER VI
ADMINISTRATIVE SANCTION

Article 18

(1) Business Agents that violate provisions in Article 4, Article 5, Article 6, Article 7,Article 8, Article 9, Article 11, and Article 12 shall be subject to administrative sanction in the form of:

• a. having their Optical Disc business permits revoked or frozen; and/or
• b. being publicized on the mass media with regard to the violation committed.

(2) Business Agents that refuse to comply with the supervision and audit specified in Article 13, Article 15 paragraph (1) and Article 16 may be subject to administrative sanction specified in paragraph (1) a.

CHAPTER VII
TRANSITIONAL PROVISIONS

Article 19

When this Government Regulation began to take effect, all regulations concerning Optical Discs shall remain valid, provided that they do not contradict this Government Regulation or have not been replaced with new regulations based on this Government Regulation.

Article 20

In no more than 6 (six) months after this Government Regulation was stipulated any business agent who is engaged in Optical Disc business shall adjust to this Government Regulation.

CHAPTER VIII
CLOSING PROVISION

Article 21

This Government Regulation shall be called as Government Regulation concerning Optical Disc.

Article 22

This Government Regulation shall come into force since the date of Stipulation.

For public cognizance, this Government Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on October 5, 2004
PRESIDENT OF THE REPUBLIC OF INDONESIA
signed,
MEGAWATI SOEKARNOPUTRI