REGULATION OF THE MINISTER OF TRADE
No. 29/M-DAG/PER/6/2009

CONCERNING
AMENDMENT TO REGULATION OF THE MINISTER OF TRADE NO. 05/M-DAG/PER/4/2005
CONCERNING PROVISIONS ON THE IMPORT OF MACHINERY, MACHINERY APPARATUSES,
RAW MATERIALS AND OPTICAL DISCS

BY GRACE OF THE ALMIGHTY GOD,
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Considering:

• a. that Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005 concerning Provisions on the Import of Machinery, Machinery Apparatuses, Raw Materials and Optical Discs only deals with imports in the interests of optical disk industry;
• b. that the import of machinery, machinery apparatuses, raw materials and optical discs is designed to serve the interests of not only optical disc industry but non-optical disc industry as well;
• c. that to support the smooth import of machinery, machinery apparatuses, raw materials and optical discs in the interests of non-optical disc industry with due observance of the goal of protecting copy rights, it is necessary to amend Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005;
• d. that in consideration as intended in a, b and c, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

• 1. Trade Law of 1934 (Statute Book No. 86/1938);
• 2. Law No. 5/1984 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);
• 3. Law No. 7/1994 concerning the Ratification of Agreement Establishing The World Trade Organization (Statute Book No. 57/1994, Supplement to Statute Book No. 3564);
• 4. 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);
• 5. Law No. 5/1999 concerning Ban on Monopolistic Practices and Unfair Business Competition (Statute Book No. 331/1999, Supplement to Statute Book No. 3806);
• 6. Law No. 8/1999 concerning Consumers Protection (Statute Book No. 42/1999, Supplement to Statute Book No. 3821);
• 7. Law No. 19/2002 concerning Copy Rights (Statute Book No. 85/2002, Supplement to Statute Book No. 4220);
• 8. Government Regulation No. 29/2004 concerning High Technology Production Facilities for Optical Discs (Statute Book No. 108/2004, Supplement to Statute Book No. 4220);
• 9. Presidential Decree No. 260/1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in the Field of Foreign Trade;
• 10. Presidential Decree No. 187/M/2004 concerning the Formation of United Indonesia Cabinet as amended the latest by Presidential Decree No. 171/M/2005;
• 11. Presidential Regulation No. 9/2005 concerning the Position, Task, Function, Organizational Structure and Work Mechanism of Ministries of the Republic of Indonesia as amended several times, the latest by Presidential Decree No. 20/2008;
• 12. Presidential Regulation No. 10/2005 concerning the Organizational Unit and Task of Echelon I Officials of Ministries of the Republic of Indonesia as amended several times, the latest by Presidential Regulation No. 50/2008;
• 13. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in Import;
• 14. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Goods Subject To Import Regulation as amended the latest by Decree of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004;
• 15. Decree of the Minister of Industry and Trade No. 648/MPP/Kep/10/2004 concerning the Reporting and Control of Optical Disc Industries;
• 16. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning the Organizational Structure and Work Mechanism of the Ministry of Trade as amended the latest by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;
• 17. Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005 concerning Provisions on the Import of Machinery, Machinery Apparatuses, Raw Materials and Optical Discs;
• 18. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer's Identification Numbers (API);

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF TRADE CONCERNING AMENDMENT TO REGULATION OF THE MINISTER OF TRADE NO. 05/M-DAG/PER/4/2005 CONCERNING PROVISIONS ON THE IMPORT OF MACHINERY, MACHINERY APPARATUSES, RAW MATERIALS AND OPTICAL DISCS.

Article I

Several provisions in Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005 concerning Provisions on the Import of Machinery, Machinery Apparatuses, Raw Materials and Optical Discs shall be amended as follows:

1. Provisions in Article 1 shall be amended so that Article 1 reads as follows:

"Article 1

In this Ministerial Regulation:

1. Machinery and machinery apparatuses are all kinds of machinery and apparatuses that are used in the production of unrecorded optical discs and/or recorded optical discs.

2. Raw materials are all kinds of materials that may be used in the production of unrecorded optical discs and/or recorded optical discs.

3. Optical discs are all kinds of recording media in the form of discs that can be filled with or contain data and/or information in the form of sound, music, film or other data and/or information that can be read with a scanning technology mechanism optically using a ray source of high intensity such as laser.

4. Unrecorded optical discs are optical discs in unrecorded form that are the final product of production process without any data and/or information.

5. Recorded optical discs are optical discs that are the final product of high technology production process that contain data and/or information in the form of sound, music, film or other data and/or information.

6. Production code is a source identification code (SID code) consisting of stamped code and mould code that must be stamped in any recorded optical disc.

7. Registered importer of optical discs hereinafter abbreviated as IT of optical discs is a company or industry in the field of optical disc that has secured an importer's identification number (API) approved by the Director General to import machinery, machinery apparatuses, raw materials, unrecorded optical discs and! or recorded optical discs.

8. Registered importer of non-optical discs hereinafter abbreviated as IT of non-optical discs is a company or industry outside the field of optical discs that has secured an importer's identification number (APl) approved by the Director General to import machinery, machinery apparatuses, raw materials, unrecorded optical discs and/or recorded optical discs.

9. Recommendation is a letter that is issued by the official of an agency/unit authorized to give technical advice and does not constitute an import permit or approval.

10. Director General is the Director General of Foreign Trade, Ministry of Trade.

11. Minister is the minister whose tasks and responsibilities cover the trade sector."

2. Provisions in Article 2 shall be amended so that Article 2 reads as follows:

"Article 2

(1) Machinery, machinery apparatuses, raw materials, unrecorded optical discs and recorded optical discs laid down in this Ministerial Regulation shall be the same as those contained in Attachment I which is an integral part of this Ministerial Regulation.

(2) The machinery, machinery apparatuses, raw materials, unrecorded optical discs and recorded optical discs as intended in paragraph (1) shall meet technical conditions in accordance with the regulations.

(3) The recorded optical discs as intended in paragraph (1) shall carry production codes in accordance with internationally accepted rules."

3. In between Article 2 and Article 3, shall be inserted 1 (one) article, namely Article 2A which reads as follows:

"Article 2A

The machinery, machinery apparatuses, raw materials, unrecorded optical discs and recorded optical discs as intended in Article 2 paragraph (1) can only be imported by companies or industries in the field of optical discs already appointed as IT of optical discs."

4. Provisions in Article 3 shall be amended so that Article 3 reads as follows:

"Article 3

(1) The Director General shall endorse the appointment of IT of optical discs as intended in Article 2A.

(2) To become IT of optical discs as intended in paragraph (1) companies or industries in the field of optical disc shall propose applications in writing to the Director General, accompanied by:

• a. a photocopy of industrial permit, certificate of industrial registration, or other equivalent business permit issued by a technical ministry/non-ministerial government agency overseeing optical discs;
• b. a photocopy of importer's identification number (API);
• c. a photocopy of certificate of company registration (TDP);
• d. a photocopy of taxpayer code number (NPWP);
• e. a photocopy of customs identity number (NIK);
• f. a recommendation from the Director General of Metal, Machinery, Textile and Multifarious Industries at the Ministry of Industry to import machinery and machinery apparatuses;
• g. a recommendation from the Director General of Agro and Chemical Industries at the Ministry of Industry to import raw materials and unrecorded optical discs; and;
• h. a recommendation from the Director General of Intellectual Property Rights at the Ministry of Law and Human Rights to import recorded optical discs."

5. In between Article 4 and Article 5, shall be inserted 2 (two) articles, namely Article 4A and Article 4B which read as follows:

"Article 4A

If companies or industries outside the field of optical disc need machinery, machinery apparatuses, raw materials, unrecorded optical discs and recorded optical discs as intended in Article 2 paragraph (1) the companies or industries can import them after securing certificates of registration as IT of non-optical discs.

Article 4B

(1) Certificates of registration as IT of non-optical discs as intended in Article 4A shall be issued by the Director General.

(2) To secure certificates of registration as IT of non-optical discs as intended in paragraph (1) companies or industries outside the field of optical disc shall propose applications in writing to the Director General, accompanied by:

• a. a photocopy of importer's identification number (API);
• b. a photocopy of certificate of company registration (TDP);
• c. a photocopy of taxpayer code number (NPWP); and
• d. a photocopy of customs identity number (NIK)."

6. Provisions in Article 5 shall be amended so that Article 5 reads as follows:

"Article 5

Certificates of appointment as IT of optical discs as intended in Article 3 and certificates of registration as intended in Article 4A shall be valid for a period of 3 (three) years and can be extended."

7. Provisions in Article 6 shall be amended so that Article 6 reads as follows:

"Article 6

(1) IT of optical discs as intended in Article 2A that will import machinery, machinery apparatuses, raw materials, unrecorded optical discs and recorded optical discs shall secure an import approval from the Director General in this case the Director of Imports.

(2) To secure the import approval as intended in paragraph (1) IT of optical discs shall propose applications in writing to the Director General in this case the Director of Imports, accompanied by:

• a. a recommendation from the Director General of Metal, Machinery, Textile and Multifarious Industries at the Ministry of Industry to import machinery and machinery apparatuses;
• b. a recommendation from the Director General of Agro and Chemical Industries at the Ministry of Industry to import raw materials and unrecorded optical discs; or
• c. a recommendation from the Director General of Intellectual Property Rights at the Ministry of Law and Human Rights to import recorded optical discs."

8. Provisions in Article 7 shall be amended so that Article 7 reads as follows:

"Article 7

(1) IT of optical discs that have secured an import approval as intended in Article 6 shall submit a quarterly report on the realization of import and distribution of machinery, machinery apparatuses, raw materials, unrecorded optical discs and recorded optical discs to the Director General in this case the Director of Imports.

(2) IT of non-optical discs shall submit a quarterly report on the realization of import to the Director General in this case the Director of Imports, with copies addressed to:

• a. the Director General of Metal, Machinery, Textile and Multifarious Industries in this case the Director of Machinery Industry at the Ministry of Industry for the import of machinery and machinery apparatuses;
• b. the Director General of Agro and Chemical Industries in this case the Director of Downstream Chemical Industry at the Ministry of Industry for import of raw materials and unrecorded optical discs; and
• c. the Director General of Intellectual Property in this case the Director of Copy Rights, Industrial Design, Integrated Circuit Layout Design and Trade Secrecy at the Ministry of Law and Human Rights for the import of recorded optical discs.

(3) The report on the realization of import and distribution as intended in paragraph (1) as well as the report on the realization of import as intended in paragraph (2) shall be submitted no later than the 15th of the first month of the ensuing period through http://inatrade.depdag.go.id with the model of report as contained in Attachment II and Attachment III which are an integral part of this Ministerial Regulation."

9. In between Article 9 and Article 10, shall be inserted 1 (one) article, namely Article 9A which reads as follows:

"Article 9A

(1) Provisions in this Ministerial Regulation shall not apply to the import of unrecorded optical discs and recorded optical discs conducted by:

• a. government agencies and state institutions;
• b. representative offices of foreign countries and their officials assigned in Indonesia;
• c. international bodies and their officials assigned in Indonesia;
• d. individuals as personal effects;
• e. passengers and crew members of transport means, with a maximum of 10 (ten) discs; and
• f. individuals through a forwarding agent, with a maximum of 10 (ten) discs.

(2) Any unrecorded optical disc and recorded optical disc imported as intended in paragraph (1) remain subject to customs regulation.

(3) Any recorded optical disc imported as intended in paragraph (1) shall be stamped with a production code."

10. In between Article 11 and Article 12, shall be inserted 1 (one) article, namely Article 11A which reads as follows:

"Article 11A

(1) Certificates of registration as IT of non-optical discs shall be revoked if the relevant companies:

• a. do not carry out the obligation to submit reports on the realization of imports as intended in Article 7 paragraph (2) and paragraph (3); and/or
• b. change, add, and/or replace the content of certificates of registration as IT of non-optical discs.

(2) The Director General shall revoke the certificates of registration as IT of non-optical discs as intended in paragraph (1)."

11. Attachment I, Attachment II, Attachment Ill, and Attachment lV to Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005 shall be amended into Attachment I, Attachment II, and Attachment III to this Ministerial Regulation.

Article II

This Ministerial Regulation shall come into force as from the date of stipulation.

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

Stipulated in Jakarta
On June 30, 2009
THE MINISTER OF TRADE
signed,
MARI ELKA PANGESTU