REGULATION OF THE MINISTER OF TRADE
No. 39/M-DAG/PER/10/2010

CONCERNING
PROVISION ON THE IMPORT OF FINISHED GOODS BY PRODUCERS

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

Considering:

a. that to create a conducive business climate, realize business certainty and encourage accelerated investment, it is necessary to regulate the import of finished goods by producers;

b. that based on considerations in paragraph a, it is necessary to stipulate Regulation of the Minister of Trade;

In view of:

1. Trade Law 1934 (Statute Book No. 86/1938);

2. Law No. 3/1982 concerning Compulsory Company Registration (Statute Book No. 7/1982, Supplement to Statute Book No. 3214);

3. Law No. 5/1984 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);

4. Law No. 7/1994 concerning Ratification of Agreement Establishing The World Trade Organization (Statute Book No. 57/1994, Supplement to Statute Book No. 3564);

5. 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);

6. Law No. 5/1999 concerning Ban on Monopolistic Practices and Unfair Competition (Statute Book No. 33/1999, Supplement to Statute Book No. 3817);

7. Law No. 25/2007 concerning Investment (Statute Book No. 67/2007, Supplement to Statute Book No. 4724);

8. Law No. 39/2008 concerning State Ministries (Statute Book No. 116/2008, Supplement to Statute Book No. 4916);

9. Law No. 25/2009 concerning Public Services (Statute Book No. 112/2009, Supplement to Statute Book No. 5038);

10. Presidential Decree No. 260/1967 concerning Affirmation of Tasks and Responsibilities of the Minister of Trade in the Foreign Trade Field;

11. Presidential Regulation No. 47/2009 concerning Formation and Organization of State Ministries;

12. Presidential Decree No. 84/P/2009 concerning Formation of United Indonesia Cabinet II;

13. Presidential Regulation No. 24/2010 concerning the Position, Task, and Function of State Ministries and the Organizational Structure, Task and Function of First Echelon Officials of State Ministries;

14. Regulation of the Minister of Trade No. 28/M-DAG/PER/6/2009 concerning Provisions on Export and Import Licensing Services with Electronic System through INATRADE within the framework of Indonesian National Single Window;

15. Regulation of the Minister of Trade No. 45/M-DAG/PER/9/2009 concerning Importer's Identity Number (API) as amended by Regulation of the Minister of Trade No. 17/M-DAG/PER/3/2010;

16. Regulation of the Minister of Trade No. 54/M-DAG/PER/10/2009 concerning General Provisions in Import;

17. Regulation of the Minister of Trade No 31/M-DAG/PER/7/2010 concerning the Organization and Work Mechanism of the Ministry of Trade;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE IMPORT OF FINISHED GOODS BY PRODUCERS.

Article 1

In this Regulation of the Minister of Trade:

1. Import is the act of taking goods into the Indonesian customs area.

2. Producer Importer's Identity Number, hereinafter abbreviated API-P, is importer's Identity Number issued by the Chief of the Investment Coordinating Board or the Head of the Provincial Office whose tasks and responsibilities cover the trade sector, for and on behalf of the Minister of Trade.

3. Finished goods is goods that is not used in production process and can be imported by producers according to an industrial permit or other similar business permits issued by authorized technical agency.

4. Producer is a company holding API-P.

5. Minister is the minister overseeing government affairs in the trade sector.

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

7. Director is the Import Director, Directorate General of Foreign Trade, Ministry of Trade.

8. Investment Coordinating Board, hereinafter abbreviated BKPM, is a non-ministerial government institute overseeing government affairs in the investment sector.

Article 2

(1) Producers can import finished goods to encourage development of their businesses.

(2) The finished goods that can be imported by producers as intended in paragraph (1) shall be according with:

• a. industrial permit or other similar business permits issued by the Head of BKPM; or
• b. industrial permit or other similar business permits issued by authorized technical agency/office.

(3) The producers as intended in paragraph (1) shall be stipulated in the list of producers that can import finished goods by the Director General on behalf of the Minister.

(4) To apply for inclusion in the list of producers that can import finished goods as intended in paragraph (3) producers shall file written applications to the Minister through the Director General, accompanied by:

• a. copies of industrial permit or other similar business permits issued by the BKPM Chairman or authorized technical agency/office; and
• b. copies of API-P.

Article 3

(1) Producers stipulated in the list of producers that can import finished goods shall file a written report on the import of finished goods to the Director every quarter.

(2) The report on the import of finished goods as intended in paragraph (1) shall be filed, whether or not the import is realized.

(3) The report on the import of finished goods as intended in paragraph (2) shall be filed no later than the 15th (fifteenth) of the first month of the following quarter to the Director through http://inatrade.depdag.go.id.

(4) In addition to the report as intended in paragraph (1) producers stipulated in the list of producers that can import finished goods shall remain obliged to file a report as an API-P holder according to the regulation on Importer's Identity Number (API).

Article 4

(1) Producers stipulated in the list of producers that can import finished goods shall be subject to a post audit by the Director based on:

• a. the truth in the report on import;
• b. the fact that the type of imported goods accord with the business permit as intended in Article 2 paragraph (2);
• c. compliance with the law and regulation related to the import sector.

(2) In conducting the post audit as intended in paragraph (1) the Director can cooperate with the relevant technical agency.

Article 5

The import of finished goods as intended in Article 2 paragraph (2) shall be done according to the laws and regulations.

Article 6

(1) The Director General shall periodically submit reports to the Minister in the form of:

• a. recapitulation of the import of finished goods by producers; and
• b. the result of post audit as intended in Article 4.

(2) The reports as intended in paragraph (1) shall serve as evaluation materials to stipulate a list of producers that can import finished goods and materials to make policies on the import of finished goods.

Article 7

(1) Producers stipulated in the list of producers that can import finished goods shall be excluded from the list if:

• a. they do not submit a import realization report as intended in Article 3.
• b. based on the result of post audit as intended in Article 4 states that the import realization report is unfounded, the type of imported goods does not accord with the business permit, and/or the producers do not comply with the regulation in the import sector;
• c. there is a written request for the exclusion of the producers from the list of producers that can import finished goods from the relevant technical agency on consideration the producers do not carry out production activity as it is;
• d. there is a written request for the exclusion of the producers from the list of producers that can import finished goods from the Directorate General of Customs and Excise, Ministry of Finance, on consideration the producers have violated the regulation in the customs sector; and/or
• e. they have their API-P revoked.

(2) The producers that have been excluded from the list of producers that can import finished goods can be put back in the list if:

• a. the producers excluded from the list based on provisions in paragraph (1) paragraph a, have filed a report on the import of finished goods;
• b. the producers excluded from the list based on provisions in paragraph (1) paragraph c and paragraph d, have been declared as fulfilling provisions by the relevant technical agency; or
• c. the producers are given sanction based on provisions in paragraph (1) paragraph e have obtained new API-P.

(3) The producers that have been excluded from the list of producers that can import finished goods as intended in paragraph (1) paragraph b can be put back in the list 1 (one) year after they have been excluded from the list of producers that can import finished goods.

(4) To apply for re-inclusion in the list of producers that can import finished goods, the producers shall file applications according to provisions in Article 2 paragraph (4).

Article 8

The Director General shall stipulate guidance to conduct a post audit.

Article 9

This Regulation of the Minister of Trade shall come into force as from January 1, 2011.

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 October 4, 2010
THE MINISTER OF TRADE,
signed,
MARl ELKA PANGESTU