REGULATION OF THE MINISTER OF TRADE
No. 43/M-DAG/PER/9/2009

CONCERNING
THE PROCUREMENT, CIRCULATION, SALES, SUPERVISION, AND CONTROL OF ALCOHOLIC DRINKS

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

Considering:

• a. that to implement provisions in Article 6 of Presidential Decree No. 3/1997 concerning the Supervision and Control of Alcoholic Drinks, it is necessary to step up the supervision and control of alcoholic drinks;
• b. that to protect public health, tranquility, law and order and moral against the adverse impact of alcoholic drinks, it is necessary to rearrange policies related to the procurement, circulation, and sales of foreign and locally made alcoholic;
• c. that based on the considerations in paragraph a and b, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

• 1. Trade Ordinance of 1934 (Statute Book No. 86/1938);
• 2. Emergency Law No. 7/1955 concerning the Investigation, Prosecution and Trial of Economic Criminal Offences (Statute Book No. 27/1955, Supplement to Statute Book No. 801) as amended several times, the latest by Government Regulation in lieu of Law No. 1/1971 (Statute Book No. 55/1971, Supplement to Statute Book No. 2966);
• 3. Government Regulation in lieu of Law No. 8/1962 concerning the Trade of Goods under Surveillance (Statute Book No. 42/1962, Supplement to Statute Book No. 2469);
• 4. Law No. 5/1984 concerning Industrial Affairs (Statute Book No. 22/1984, Supplement to Statute Book No. 3274); .
• 5. Law No. 23/1992 concerning Health (Statute Book No. 100/1992, Supplement to Statute Book No. 3495);
• 6. 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);
• 7. Law No. 10/1995 concerning Customs (Statute Book No. 57/1995, Supplement to Statute Book No. 3612) that is amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 8. Law No. 11/1995 concerning Excise (Statute Book No. 76/1995, Supplement to Statute Book No. 3613) that is amended by Law No. 39/2007 (Statute Book No. 105/2007, Supplement to Statute Book No. 4755);
• 9. Law No. 7/1996 concerning Food (Statute Book No. 99/1996, Supplement to Statute Book No. 3656);
• 10. Law No. 5/1999 concerning Anti Monopoly and Unfair Business Competition (Statute Book No. 33/1999, Supplement to Statute Book No. 3817);
• 11. Law No. 8/1999 concerning Consumer Protection (Statute Book No. 42/1999, Supplement to Statute Book No. 3821);
• 12. Law No. 36/2000 concerning the Passage of Government Regulation in lieu of Law No. 1/2000 concerning Free Trade Zone and Free Port into Law (Statute Book No. 251/2000, Supplement to Statute Book No. 4053) that is amended by Law No. 44/2007 concerning the Passage of Government Regulation in lieu of Law (Statute Book No. 130/2007, Supplement to Statute Book No. 4775);
• 13. Law No. 29/2007 concerning the Government of Special Province of Jakarta as the Capital of the Unitary State of the Republic of Indonesia (Statute Book No. 93/2007, Supplement to Statute Book No. 4744);
• 14. Law No. 32/2004 concerning Regional Government (Statute Book No. 125/2004, Supplement to Statute Book No. 4437) that is several times amended the latest by Law No. 12/2008 (Statute Book No. 59/2008, Supplement to Statute Book No. 4844);
• 15. Government Regulation No. 1/1957 concerning the Distribution of Companies (Statute Book No. 7/1957, Supplement to Statute Book No. 1114) that is amended and supplemented the latest by Government Regulation No. 53/1957 (Statute Book No. 150/1957, Supplement to Statute Book No. 1467);
• 16. Government Regulation No. 11/1962 concerning the Trade of Goods under Surveillance (Statute Book No. 46/1962, Supplement to Statute Book No. 2473) that is amended by Government Regulation No. 19/2004 (Statute Book No. 68/2004, Supplement to Statute Book No. 4402);
• 17. Government Regulation No. 33/1996 concerning Bonded Hoarding Place (Statute Book No. 50/2004, Supplement to Statute Book No. 3638);
• 18. Government Regulation No. 69/1999 concerning Food Label and Advertisement (Statute Book No. 131/2004, Supplement to Statute Book No. 3867);
• 19. Government Regulation No. 28/2004 concerning Food Security, Quality and Nutrition (Statute Book No. 107/2004, Supplement to Statute Book No. 4424);
• 20. Government Regulation No. 38/2007 concerning the Sharing of Government Affairs between the Government, Provincial Governments and Regency/Municipal Governments (Statute Book No. 82/2007, Supplement to Statute Book No. 4737);
• 21. Government Regulation No. 32/2009 concerning Bonded Hoarding Place (Statute Book No. 61/2009, Supplement to Statute Book No. 4998);
• 22. Presidential Decree No. 260/1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in the Foreign Trade Sector;
• 23. Presidential Decree No. 3/1997 concerning the Supervision and Control of Alcoholic Drinks;
• 24. Presidential Decree No. 187/M/2004 concerning the Formation of United Indonesia Cabinet that is several times amended the latest by Presidential Decree No. 171/M/2005;
• 25. Presidential Regulation No. 9/2005 concerning the Position, Task, Function, Organizational Structure and Work Mechanism of State Ministries that is several times amended the latest by Presidential Regulation No. 20/2008;
• 26. Presidential Regulation No. 10/2005 concerning Organizational Units and First Echelon Officials of State Ministries that is several times amended the latest by Presidential Regulation No. 50/2008;
• 27. Decree of the Minister of Trade No. 314/KP/VIII/74 concerning the Circulation, Import and Export of Drugs, Foods, Beverages, Cosmetics and Health Instruments;
• 28. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in Import;
• 29. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Goods Subject to Import Regulations that is several times amended the latest by Decree of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004;
• 30. Decree of the Minister of Finance No. 490/KMK.05/1996 concerning the Procedures of Importing Goods of Passengers, Transport Crew Members, Border Crossers, Mailed Parcels and Parcels through Forwarding Agents;
• 31. 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 that is several times amended the latest by Regulation of the Minister of Trade No. 24/M-DAG/PER/6/2009;
• 32. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer's Identity Number (API);
• 33. Regulation of the Minister of Trade No. 36/M-DAG/PER/9/2007 concerning the Issuance of Trade Permits (SIUP);
• 34. Regulation of the Minister of Trade No. 20/M-DAG/PER/5/2009 concerning Provisions on and Procedures of Supervision Goods and/or Services;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF TRADE CONCERNING THE PROCUREMENT, CIRCULATION, SALES, SUPERVISION, AND CONTROL OF ALCOHOLIC DRINKS.

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Ministerial Regulation:

• 1. “Alcoholic drink” refers to drink containing ethanol processed from agricultural produce containing carbohydrate through fermentation and distillation or fermentation without distillation, whether or not previously worked, by adding other materials or not, or that processed by mixing concentrates and ethanol or by diluting drink containing ethanol derived from fermentation.
• 2. “Procurement” refers to the supply of alcoholic drinks by producers for local products or by registered importers of alcoholic drinks for imported products.
• 3. “Registered importer of alcoholic drinks”, hereinafter abbreviated as IT-MB, refers to a company licensed to import alcoholic drinks.
• 4. “Circulation” refers to the distribution of alcoholic drinks for domestic trade.
• 5. “Sales of alcoholic drink” refers to the sales of alcoholic drinks for consumption.
• 6. “Company” refers to any form of individual business entity or business entity owned by an Indonesian citizen and domiciled in the territory of the Republic of Indonesia, either corporate body or non corporate body, engaged in alcoholic drink trade.
• 7. “Distributor” refers to a distributing company appointed by alcoholic drink producer and/or IT-MB to circulate locally made and/or imported alcoholic drinks in large parties in certain marketing areas.
• 8. “Sub distributor” refers to a distributing company appointed by alcoholic drink producer, IT-MB, and/or distributor to circulate locally made and/or imported alcoholic drinks in large parties in certain marketing areas.
• 9. “Direct seller of alcoholic drinks” hereinafter called as direct Seller, refers to a company selling alcoholic drinks to end users for drinking directly in a designated place.
• 10. “Alcoholic drink retailer”, hereinafter called as Retailer, refers to a company selling alcoholic drinks to end users in packages in a designated place.
• 11. “Duty free shop”, hereinafter abbreviated as TBB, refers to a bonded hoarding place to hoard goods of import origin and/or goods from customs area for sales to certain people.
• 12. “Duty free shop operator”, hereinafter abbreviated as PTBB, refers to a limited liability company specially selling goods of import origin and/or goods from other Indonesian customs area (DPIL) at TBB.
• 13. “Customs area” refers to the territory of the Republic of Indonesia covering land, waters and air space, as well as certain places in the Exclusive Economic Zone and Continental Shelf where the Law on Customs is imposed;
• 14. “Customs zone” refers to all area with certain borders at sea-ports, airports, or other places designed for the traffic of goods fully under the surveillance of the Directorate General of Customs and Excise.
• 15. “Hotel, restaurant, bar, pub, and night club” refers to those as laid down in the law and regulation in the tourism sector.
• 16. “Trade permit”, hereinafter abbreviated as SIUP, is a permit to do trade.
• 17. “Application for alcoholic drink trade permit”, hereinafter abbreviated as SP SIUP-MB, refers to an application form that must be filled by company with data/information from the concerned company to obtain an alcoholic drink trade permit.
• 18. “Alcoholic drink trade permit”, hereinafter abbreviated as SIUP-MB, refers to a permit to do special alcoholic drink trade of class B and/or class C.
• 19. “Head of the Provincial Office” refers to the head of the provincial office whose tasks and responsibilities cover the trade sector.
• 20. “Head of the Regency/Municipal Office” refers to the head of the regency/municipal office whose tasks and responsibilities cover the trade sector.
• 21. “Director General of Foreign Trade”, hereinafter abbreviated as the Dirjen Daglu, refers to the Director General whose tasks and responsibilities cover the foreign trade sector.
• 22. “Director General of Domestic Trade”, hereinafter abbreviated as Dirjen PDN, refers to the Director General whose tasks and responsibilities cover the domestic trade
• 23. “Regent/mayor” refers to the Head of regency/municipal government as decided in Law No. 32/2004 concerning Regional Government.
• 24. “Governor” refers to Governor in the capacity as representative of the Government and Head of Provincial Government as laid down in Law No. 32/2004 concerning Regional Government.
• 25. “Governor of DKI Jakarta” refers to governor in the capacity as representative of the Government and head of the Special Province of Jakarta as laid down in Law No. 29/2007 concerning the Government of the Special Province of Jakarta as the Capital City of the Unitary State of the Republic of Indonesia.
• 26. Minister refers to the minister whose tasks and responsibilities cover the trade sector.

CHAPTER II
THE CLASSIFICATION AND TYPES OF ALCOHOLIC DRINKS

Article 2

Alcoholic drinks are classified into the following classes:

• a. Alcoholic drink of class A is alcoholic drink with an ethanol (C2H5OH) content of more than 0% (zero percent) up to 5% (five percent);
• b. Alcoholic drink of class B is alcoholic drink with an ethanol (C2H5OH) content of more than 5% (five percent) up to 20% (twenty percent); and
• c. Alcoholic drink of class C is alcoholic drink with an ethanol (C2H5OH) content of more than 20% (twenty percent) up to 55% (fifty five percent).

Article 3

(1) The Minister shall set the types or products of alcoholic drinks of class A, class B and class C that can be imported and sold in the domestic market.

(2) The types or products of alcoholic drinks as described in paragraph (1) are contained in Attachments I and II to this Ministerial Regulation.

Article 4

The circulation and sales of the alcoholic drinks of class B and class C as described in Article 3 originating from domestic production and import shall be declared as goods under surveillance.

CHAPTER III
THE PROCUREMENT, CIRCULATION AND SALES OF ALCOHOLIC DRINKS

Part One
Procurement

Article 5

The types of alcoholic drinks of class A, class B and class C as described in Article 3 can be procured from domestic production or import.

Article 6

(1) Companies importing alcoholic drinks of class A, class B and/or class C as described in Article 3 shall obtain IT-MB status from the Minister.

(2) To obtain IT-MB status as described in paragraph (1), the companies shall file written applications to the Minister through the Dirjen Daglu, complete with the following documents:

• a. Copy of Importer Identity Number (API);
• b. Copy of Company Registration Number (TDP);
• c. Copy of Alcoholic Drink Trade Permit (SIUP-MB) as distributor;
• d. Copy of Taxpayer Code Number (NPWP);
• e. Copy of Customs Identification Number (NIK);
• f. Copy of letter of appointment from 20 (twenty) principals of brand holder/factory abroad for the minimum purchase of 3,000 (three thousand) cartons per brand per year by showing the original letter of appointment validated by a public notary in the country of origin;
• g. A written statement from the Trade Attaches/the Indonesian Embassy stating the principals/representatives of the brand holder have the authority to appoint a distributor abroad; and
• h. A written statement of having alcoholic drink distribution networks signed on sufficient duty stamp.

(3) The Minister shall issue IT-MB status no later than 5 (five) working days after the applications as described in parawaph (2) have been received in a complete and correct manner.

(4) Based on certain considerations, the Minister can appoint a state owned company (BUMN) and/or regional government owned company (BUMD), by the government as IT-MB whose sales is subject to duty (duty paid).

(5) The certain considerations as described in paragraph (4) can be in the form of:

• a. the scarcity of alcoholic drinks;
• b. the condition in which IT-MB is unable to realize import.

Article 7

(1) Stipulation as IT-MB as described in Article 6 paragraph (3) is valid for 3 (three) years and can be extended.

(2) Companies holding IT-MB can apply in writing to Dirjen Daglu for the extension of IT-MB status as described in paragraph (1).

(3) The application as described in paragraph (2) shall be complete with the original document of expired IT-MB status.

Article 8

(1) The allocation of the types and quantities of alcoholic drinks that can be imported to meet consumption needs shall be set based on the pattern of distribution in the fulfillment of consumption needs for alcoholic drinks whose sales is subject to duty (duty paid) and is not subject to duty (duty not paid).

(2) The consumption needs for alcoholic drinks whose sales is not subject to duty (duty not paid) as described in paragraph (1) shall be imported by BUMN appointed by the Minister.

(3) The Minister shall every year set the allocation of types and quantities of alcoholic drinks to meet national needs by considering:

• a. imports in the last 3 (three) years to meet needs for alcoholic drinks whose sales is subject to duty (duty paid);
• b. imports in the last 3 (three) years to meet needs for alcoholic drinks whose sales is not subject to duty (duty not paid).
• c. the total number of applications from IT-MB;
• d. the estimate of overseas tourist arrivals and needs from hotels, pubs, bars and restaurants grouped in the Indonesian Association of Hotels and Restaurants.

(4) The import allocation of alcoholic drinks as described in paragraph (3) for each IT-MB shall be set on a pro rata basis from the quantities and types of alcoholic drinks to be imported and the allocation shall be set proportionally.

(5) The import allocation of alcoholic drinks as described in paragraph (4) for IT-MB shall be granted by the Minister in the form of import approval per year.

(6) To obtain import approvals as described in paragraph (5) IT-MB shall file an application complete with a photocopy of IT-MB to the Minister no later than 15 (fifteen) days before the current year.

(7) IT-MB that have secured the allocation as described in paragraph (5) shall conduct import themselves.

Article 9

(1) IT-MB can only import alcoholic drinks to the Indonesian customs area through:

• a. Belawan Seaport in Medan, Tanjung Priok Seaport in Jakarta, Tanjung Emas Seaport in Semarang, Tanjung Perak Seaport in Surabaya, and Soekarno Hatta Seaport in Makassar; or,
• b. International Airport.

(2) The import of alcoholic drinks to a free trade zone and free port shall be done only to meet consumption needs in the zone concerned.

(3) The Import of alcoholic drinks as described in paragraph (2) shall be done in accordance with the law on free trade zone and free port.

Article 10

The Minister can delegate the authority to grant IT-MB status as described in Article 6 paragraph (3), set the allocation of types and quantities of alcoholic drinks as described in Article 8 paragraph (3), and issue import approvals as described in Article 8 paragraph (5) to Dirjen Daglu.

Part Two
Circulation and Sales

Article 11

(1) In circulating alcoholic drinks of class B and/or class C, producers or IT-MB can appoint distributors, sub-distributors, direct sellers, or retailers based a written agreement.

(2) In addition to appointing distributors, sub-distributors, direct sellers or retailers as described in paragraph (1), IT-MB can also appoint TBB as retailers.

(3) The distributors as described in paragraph (1) can only receive a maximum of 5 (five) appointments from a producer or IT-MB or the combination of the two.

(4) The distributors as described in paragraph (1) shall:

• a. have and/or control a warehouse to store alcoholic drinks separately from other goods;
• b. have and/or control adequate transport means; and
• c. have alcoholic drink distribution networks up to the level of sub-distributor direct seller or retailer in their working area, evident from a list of appointed distributors, direct sellers or retailers.

(5) Distributors can only circulate alcoholic drinks of class B and/or class C from the producer and/or IT-MB appointing them.

(6) In circulating alcoholic drinks of class B and/or class C the distributors as described in paragraph (1) can appoint sub-distributors, direct sellers or retailers based on a written agreement.

Article 12

(1) The sub-distributors as described in Article 11 paragraph (1) can only receive a maximum of 5 (five) appointments from a producer or IT-MB or distributor or the combination of the three.

(2) The sub-distributors as described in paragraph (1) shall:

• a. have and/or control a warehouse to store alcoholic drinks separately from other goods;
• b. have and/or control adequate transport means; and
• c. have alcoholic drink distribution networks up to the level of direct seller and/or retailer in their working area, evident from a list of appointed direct sellers and/or retailers.

(3) Sub-distributors can only circulate alcoholic drinks of class B and/or class C from the appointing producer or IT-MB or distributor as described in paragraph (1).

(4) The sub-distributors as described in paragraph (1) can only circulate alcoholic drinks of class Band/or class C to direct sellers and/or retailers appointed under a written agreement.

Article 13

(1) Direct sellers and/or retailers can only receive a maximum of 5 (five) appointments from a producer or IT-MB or distributor or sub-distributor or the combination of the four.

(2) Direct sellers and/or retailers can only circulate alcoholic drinks of class B and/or class C from the appointing producer or IT-MB or distributor or sub-distributor as described in paragraph (1).

Article 14

(1) Direct sellers shall only be allowed to sell alcoholic drinks of class A, class B and/or class C for drinking directly in designated places.

(2) The designated places as described in paragraph (1) are:

• a. three, four and five star hotels;
• b. restaurants with Talam Kencana and Talam Selaka signs; and
• c. bars including pubs and night clubs.

(3) Alcoholic drinks of class B and/or class C sold in designated places as described in paragraph (2) a. can be taken to drink at hotel rooms on condition each package contains a maximum of 187 ml (one hundred and eighty seven mililiters).

(4) In regions that do not have designated places as described in paragraph (2), regents/mayors, after considering the activities of foreign tourists in their areas, can declare other designated places for direct sellers to sell alcoholic drinks of class B and/or class C in the capitals of the regencies/municipalities or other locations based on this Ministerial Regulation.

Article 15

(1) Retailers can only be allowed to sell alcoholic drinks of class A, class B and/or class C by retail in packages in designated place.

(2) The sales of alcoholic drinks as described in paragraph (1) is done by TBB as retailers.

Article 16

(1) TBB as retailers can only circulate alcoholic drinks of class B and/or class C from the appointing IT-MB.

(2) TBB located in customs zones are only allowed to sell alcoholic drinks of class B and/or class C by retail to:

• a. people traveling abroad; or
• b. passengers while on transit in customs zone;

(3) TBB located in cities are only allowed to sell alcoholic drinks of class B and/or class C by retail to:

• a. members of diplomatic corps assigned in Indonesia and their families domiciled in Indonesia as well as diplomatic institutes;
• b. officials/experts working for international bodies in Indonesia receiving diplomatic immunity and their families;
• c. foreign tourists who are to leave the customs area;

(4) The sales of alcoholic drinks by retail as described in paragraph (2) shall be for own consumption with passport evidence and boarding pass in accordance with the law.

(5) The sales of alcoholic drinks by retail as described in paragraph (3) shall be for own consumption with passport evidence and/or identity card in accordance with the law.

Article 17

(1) Regents/Mayors and the Governor of DKI Jakarta can declare other designated places than TBB as described in Article 15 paragraph (2) for retailers selling alcoholic drinks of class B and/or class C in packages in accordance with the condition of their respective areas.

(2) The other designated places as described in paragraph (1) shall not be close to places of worship, schools, hospitals, or other locations set by Regents/Mayors of the Governor of DKI Jakarta.

(3) In selling alcoholic drinks of class B and/or class C in packages, the retailers as described in paragraph (1) shall separate them from other goods and employ special cashiers.

(4) The sales of alcoholic drinks in packages by retail as described in paragraph (1) shall with the identity cards of buyers evidence that show they have been 21 (twenty one) years old in accordance with the law.

Article 18

In addition to other designated places as described in Article 14 paragraph (2) and Article 15 paragraph (2), Regents/Mayors and the Governor of DKI Jakarta can declare other places for direct sellers to sell alcoholic drinks for spot drinking and retailers to sell alcoholic drinks of class B in packages containing spice, herbal medicines and the like with a maximum ethanol content of 15% (fifteen percent).

CHAPTER IV
LICENCING

Part One
Alcoholic Drink Trade Permit

Article 19

(1) Any company circulating and/or selling alcoholic drinks of class B and/or class C shall hold SIUP-MB.

(2) Any company circulating and/or selling alcoholic drink of class A shall hold SIUP.

Article 20

Based on their appropriation, SIUP-MB consist of:

• a. SIUP-MB Distributor for IT-MB is valid in marketing areas across Indonesia;
• b. SIUP-MB for Distributor is valid in certain marketing areas according to appointment from the producer or IT-MB;
• c. SIUP-MB for Sub-distributor, is valid in certain marketing areas according to appointment from the distributor or producer or IT-MB;
• d. SIUP-MB for TBBI is valid according to a permit from the Finance Minister;
• e. SIUP-MB for Direct Sellers at 3, 4, and 5 star hotels, restaurants with Talam Kencana and Talam Selaka signs, bars including pub and night club as well as other designated places declared by Regents/Mayors, is only valid in the relevant regencies/municipalities;
• f. SlUP-MB for Direct Sellers at 3, 4, and 5 star holets, restaurants with Talam Kencana and Talam Selaka signs, bars including pubs and night clubs as well as other designated places declared by the Governor of DKI Jakarta, is only valid in the Province of DKI Jakarta;
• g. Regents/Mayors shall set SlUP-MB for Retailer in other designated places which is only valid in marketing areas of the concerned Regencies/Municipalities;
• h. The Governor of DKI Jakarta shall set SIUP-MB for retailers in other designated places which is only valid in the marketing area in the Province of DKI Jakarta;
• i. Regents/Mayors shall set SIUP-MB for Direct Seller and/or Retailer of alcoholic drink of class B containing spice, herbal medicines and the like which is valid in the marketing area of the relevant regency/municipality; and
• j. The Governor of DKI Jakarta shall set SlUP-MB for Direct Sellers and/or Retailers of alcoholic drinks of class B containing spice, herbal medicines and the like which is valid in the marketing area of the Province of DKI Jakarta.

Article 21

(1) SlUP-MB has validity period according to the validity period of written agreement on condition it does not exceed 3 (three) years since the date of issuance and can be extended.

(2) SlUP-MB shall be extended no later than 1 (one) month before the expiry date.

Article 22

(1) The authority to issue SlUP-MB as described in Article 20 rests with the Minister and is delegated to:

• a. Dirjen PDN to issue SlUP-MB Distributor for IT-MB, Distributor and Sub-distributor of alcoholic drink of class B and/or class C;
• b. Governors in this case the Heads of Provincial Office to issue SlUP-MB for TBB as retailers of alcoholic drinks of class B and/or class C;
• c. Regents/Mayors in this case the Heads of Regency/Municipal Offices to issue SIUP-MB for Direct Seller and Retailer of alcoholic drinks in other designated places, and Direct Seller and Retailer of alcoholic drink of class B in packages containing spice, herbal medicines, and the like with a maximum ethanol content of 15% (fifteen percent); and
• d. The Governor of DKI Jakarta in this case the Head of Office in the Province of DK! to issue SlUP-MB for Direct Seller and Retailer of alcoholic drinks of class B in packages containing spice, herbal medicines and the like with a maximum ethanol content of 15% (fifteen percent).

(2) The authority to issue SIUP-MB for Direct Seller at 3, 4, and 5 star hotels including restaurants with Talam Kencana and Talam Selaka signs, bars, pubs and night clubs is delegated to:

• a. Governors in this case the Heads of Provincial Offices after securing a written statement and reasons from Regents/Mayors in this case the Heads of Regency/Municipal Offices stating they do not issue SlUP-MB; or
• b. Dirjen PDN, after securing a written statement and reasons from the Governor s in this case the Heads of the Provincial Office stating that they do not issue SlUP-MB.

(3) The authority as described in paragraph (2) will not be valid if:

• a. the Heads of Provincial Office based on the results of an evaluation of the written statement and reasons from the Heads of Regency/Municipal Office as described in paragraph (2) a state not to issue SIUP-MB;
• b. Dirjen PDN based on the results of an evaluation of the written statement and reasons from.the Heads of Provincial Office as described in paragraph (2) b states not to issue SlUP-MB; or
• c. Certain regions shall govern bans on the circulation and sales of alcoholic drinks in their respective working areas.

Part Two
The Procedure of Applying for Alcoholic Drink Trade Permit

Article 23

(1) Applications for SlUP-MB for Distributor and Sub-distributor can only be filed by companies owned by Indonesian citizens.

(2) Applications for SlUP-MB for Distributor or Sub-distributor of alcoholic drinks of class Band/or class C shall be filed to Dirjen PDN, by filling SP SlUP-MB as described Attachment III to this Ministerial Regulation.

(3) Applications for change in SIUP-MB Distributor for IT-MB of alcoholic drink of class B and/or class C shall be filed to Dirjen PDN, by filling applications for change in SIUP-MB (SP SIUP-MB) as described in Attachment III to this Ministerial Regulation.

(4) Applications for SIUP-MB for Sub-distributor as described in paragraph (1) can be filed by companies in the form of corporate body, individual or association, complete with:

• a. a letter of appointment from the distributor as a sub-distributor;
• b. a recommendation on the objection and legality of company from the Governor in this case the Head of Provincial Office based on an Warrant on Field Research conducted on the company from local Regency/Municipality Office;
• c. SIUP Medium;
• d. Company registration number (TDP);
• e. Taxpayer code number (NPWP);
• f. Excisable goods company code number (NPPSKC), for companies extending SIUP-MB;
• g. Notary Deeds of corporation/amendment of limited liability company;
• h. Plan for the sales of alcoholic drinks in the next 1 (one) year; and
• i. A letter of statement written on paper with duty stamp stating not to sell alcoholic drink by retail.

(5) Applications for SIUP-MB for Distributor as described in paragraph (1) can only be filed by companies which come in the form of limited liability company and have legal entities, complete with:

• a. Deeds of corporation from the limited liability company and validation of legal entity by authorized official and notary deeds of amendment (if any);
• b. letter of appointment from the producer and/or IT-MB as a distributor;
• c. a recommendation on the objection and legality of company from the Governor in this case the Head of the Provincial Office based on an official report on field research conducted on the company from the regent/mayor;
• d. SIUP, medium or large;
• e. company registration number (TDP);
• f. taxpayer code number (NPWP);
• g. excisable goods company code number (NPPBKC), for a company extending SIUP-MB;
• h. a plan for the sales of alcoholic drinks in the next 1 (one) year; and
• i. a letter of statement written on a paper with duty stamp stating not to sell alcoholic drinks by retail.

(6) Application for change in SIUP-MB Distributor for IT-MB as described in paragraph (3), complete with:

• a. original SIUP-MB as Distributor;
• b. Notary deeds of amendment (if any); and
• c. decision on status as IT-MB.

(7) Applications for SIUP-MB for TBB shall be filed to the Governor in this case the Head of the Provincial Office by filling SPSIUP-MB as described in Attachment III to this Ministerial Regulation, complete with:

• a. a letter of appointment from IT-MB as TBB;
• b. business site permit (SITU) especially for alcoholic drinks;
• c. TBB permit from the Minister of Finance;
• d. SIUP, medium or large;
• e. company registration number (TDP);
• f. taxpayer code number (NPWP);
• g. excisable goods company code number (NPPBKC) for a company extending SIUP-MB;
• h. notary deeds of corporation/amendment for a limited liability company; and
• i. a plan for the sales of alcoholic drinks in the next 1 (one) year.

(8) Applications for SIUP-MB for direct seller, retailer other than TBS and direct seller and/or retailer of alcoholic drink of class B containing spice, herbal medicines and the like, shall be filed to the Regent/Mayor in this case the Head of the Regency/Municipal Office and the Governor of DKI Jakarta in this case the Head of the Provincial Office by filling SP SIUP-MB as described in Attachment III to this Ministerial Regulation.

(9) Applications for SIUP-MB for direct seller as described in paragraph (8) can only be filed by company in the form of legal entity, individual or firm by attaching the requirements as follows:

• a. 3, 4 and 5 star hotels, restaurant with Talam Kencana and Talam Selaka signs and bars, pubs or night clubs:
• 1. a letter of appointment from the sub-distributor as direct seller;
• 2. SIUP and/or permanent business permit especially for 3, 4, and 5 star hotels, or business permit for restaurant with Talam Kencana and Talam Selaka signs, or bar, pub or night club business permit from the authorized agency;
• 3. business site permit (SITU) especially for alcoholic drinks;
• 4. company registration number (TDP);
• 5. taxpayer code number (NPWP);
• 6. excisable goods company code number (NPPSKC), for a company extending SIUP-MB;
• 7. notary deeds of corporation of limited liability company and the validation of legal entity from the authorized official and notary deeds of amendment (if any) when the company come in the for limited liability company;
• 8. a plan for the sales of alcoholic drinks for the next 1 (one) year.
• b. direct seller, retailer in other designated place, and direct seller and/or retailer of alcoholic drinks of class B containing spice, herbal medicines and the like, complete with:
• 1. a letter of appointment from the Sub-distributor as direct seller of alcoholic drinks in other designated area, and direct seller and/or retailer of alcoholic drinks of class B containing spice, herbal medicines and the like:
• 2. a recommendation on the location of the company especially for alcoholic drinks from the Head of district;
• 3. business site permit (SITU) especially for alcoholic drinks;
• 4. SIUP, small or medium;
• 5. company registration number (TDP);
• 6. taxpayer code number (NPWP);
• 7. excisable goods company code number (NPPSKC), for a company extending SIUP-MB;
• 8. notary deeds of corporation/amendment for limited liability company; and
• 9. a plan for the sales of alcoholic drinks in the next 1 (one) year.

(10) photocopies of each of the requirements as described in paragraph (4), paragraph (5), paragraph (6) b and c, paragraph (7) and paragraph (9) by showing original documents.

Article 24

Companies which circulate and/or sell alcoholic drinks and undergo a change in data/information contained in SIUP-MB shall replace SIUP-MB;

Article 25

(1) Dirjen PDN shall issue SIUP-MB no later than 5 (five) working days after SP SIUP-MB as described in Article 23 paragraph (2) and paragraph (3) have been received in a complete and correct way using a form as described in Attachment IV to this Ministerial Regulation.

(2) Governors in this case the Heads of Provincial Office shall issue SIUP-MB no later than 5 (five}working days after SP SIUP-MB as described in Article 23 paragraph (7) have been received in a complete and correct way using a form as described in Attachment IV to this Ministerial Regulation.

(3) Regents/Mayors in this case the Heads of Regency/Municipal Offices and the Governor of DKI Jakarta in this case the Head of the Provincial Office shall issue SIUP-MB no later than 5 (five) working days after SP SIUP-MB as described in Article 23 paragraph (8) have been received in a complete and correct way using a form as described in Attachment IV to this Ministerial Regulation.

(4) In case the applications as described in Article 23 paragraph (2), paragraph (3), paragraph (7), paragraph (8) have not been complete and correct, Dirjen PDN, Governors in this case the Heads of Provincial Offices, Governor of DKI Jakarta or Regents/Mayors in this case the Heads of Regency/Municipal Offices shall issue written notification not later than 5 (five) working, days after the receipt date of SP SIUP-MB to the companies concerned along with reasons.

(5) The companies as described in paragraph (4) can complete the requested requirements no later than 30 (thirty) working days after the notification has been received.

(6) If the companies do not complete the requested requirements as described in paragraph (5), SP SIUP-MB shall be declared rejected and the companies can file new SP SIUP-MB.

CHAPTER V
THE STORING OF ALCOHOLIC DRINKS

Article 26

(1) IT-MB, distributors, sub-distributors, direct sellers, retailers and direct sellers and/or retailers of alcoholic drinks of class B containing spice, herbal medicines, and the like with a maximum ethanol content of 15% shall store the alcoholic drinks at an alcoholic drink warehouse.

(2) IT-MB, distributors, sub-distributors, direct sellers, retailers, and direct sellers and/or retailers of alcoholic drinks of class B containing spice, herbal medicines and the like as described in paragraph (1) shall record any entry and release of alcoholic drinks of class A, class B and class C from the warehouse in data cards.

(3) The data cards as described in paragraph (2) shall at least contain quantity, brand, date of entry into warehouse, date of release from warehouse, and origin of goods.

(4) The data cards as described in paragraph (2) and paragraph (3) shall be shown to supervisors conducting an audit.

CHAPTER VI
PROHIBITED ACTIVITIES

Article 27

(1) Alcoholic drinks with an ethanol (C2H50H) content of more than 55 % are banned from being imported, circulated, or sold at home.

(2) Raw materials of alcoholic drinks in the form of concentrates are banned from being imported.

Article 28

Producers, IT-MB, distributors and sub-distributors are banned from selling alcoholic drinks by retail to end-users.

Article 29

Direct sellers and/or retailers of alcoholic drinks of class B containing spice, herbal medicines and the like as described in Article 18 are banned from selling alcoholic drinks with an ethanol content of more than 15% (fifteen percent) and alcoholic drinks of class C.

Article 30

Anybody is banned from carrying alcoholic drinks of class A, class B and class C from abroad as hand luggage, except for own consumption with a maximum quantity of 1000 ml (a thousand milliliters) per person and a content of 180 ml (a hundred and eighty milliliters) per package.

Article 31

Anybody is banned from selling alcoholic drinks of class A, class B and class C in packages by retail and/or directly selling alcoholic drinks of class A, class B and class C for drinking on the spot in the following locations:

• a. youth center, sidewalk vendor, bus terminal, railway station, kiosk, youth lodging and camping ground;
• b. places close to place of worship, school, hospital, and residential area; and
• c. other designated places set by Regents/Mayors or the Governor of DKI Jakarta by considering the condition of each region.

Article 32

Direct sellers and retailers are banned from selling alcoholic drinks of class A, class B and class C to buyers aged under 21 (twenty one) years evidenced with identity, cards in accordance with the law.

Article 33

IT-MB, distributors, sub distributors, direct sellers, and retailers are banned from advertising alcoholic drinks of class A, class B and class C.

CHAPTER VII
SUPERVISION AND REPORTING

Part One
Supervision

Article 34

Supervision within the framework of controlling the circulation of alcoholic drinks shall be conducted on:

• a. IT-MB, distributors, and subdistributors;
• b. PTBB, direct sellers, retailers of alcoholic drinks of class B, and class C, as well as direct sellers and/or retailers of alcoholic drinks of class B containing spice, herbal medicines and the like;
• c. licensing, import, circulation and sales of alcoholic drinks of class B and class C and packages; and
• d. places/locations of storing, circulation and sales of alcoholic drinks of class B and class C.

Article 35

The supervision and control as described in Article 34 shall be done as follows:

(1) The Minister shall conduct supervision within the framework of controlling the circulation of alcoholic drinks as described in Article 34 in coordination with relevant ministers.

(2) The supervision as described in Article 34 shall be done by Dirjen Daglu and Dirjen PDN according to their main tasks and functions by coordinating with Regional Governments.

(3) Governors shall coordinate efforts to supervise the circulation and sales of alcoholic drinks according to their working areas.

(4) In supervising the circulation and sales of alcoholic drinks, Regents/Mayors shall form an integrated team consisting of:

• a. the office whose task and responsibility cover the trade sector;
• b. the office whose task and responsibility cover the industrial sector;
• c. the office whose task and responsibility cover the health sector;
• d. the office whose task and responsibility cover the tourism sector;
• e. the office whose task and responsibility cover the security and public order sector;
• f. Drug and Food Supervisory Board according to working area; and
• g. other relevant agencies.

(5) The integrated team as described in paragraph (4) is led by the Head of the Office whose task and responsibility covers the trade sector.

(6). In conducting supervision as described in paragraph (4) the integrated team involves police personnel as a supporting element.

(7) The activities of the integrated team as described in paragraph (4) are financed by the regional government budget.

Part Two
Reporting

Article 36

(1) Producers or IT-MB shall report any appointment of distributor, sub distributor, direct seller and/or retailer as described in Article 11 paragraph (1) to Dirjen PDN in this case the Director of Market and Distribution Development, complete with a photocopy of written agreement.

(2) Distributors shall report any appointment of Sub distributor, direct seller and/or retailer as described in Article 11 paragraph (6) to Dirjen PDN in this case the Director of Market and Distribution Development, complete with a photocopy of written agreement.

(3) Sub distributors shall report any appointment of direct seller and/or retailer as described in Article 12 paragraph (4) to Dirjen PDN in this case the Director of Market and Distribution Development, complete with a photocopy of written agreement.

(4) IT-MB shall report any appointment of TBB as a retailer as described in Article 11 paragraph (2) to Dirjen PDN in this case the Director of Market and Distribution Development, complete with a photocopy of written agreement.

Article 37

(1) IT-MB of class A, class B, and class C shall report the realization of their imports once every 3 (three) months to Dirjen Daglu in this case the Import Director, with copies addressed to:

• a. the Director General of Domestic Trade;
• b. the Director General of Agro and Chemical Industries, Industry Ministry;
• c. the Director General of Tourism Destination Development, Culture and Tourism Ministry;
• d. the Director General of Taxation, Ministry of Finance;
• e. the Director General of Customs and Excise, Ministry of Finance; and
• f. the Drug and Food Supervisory Board.

(2) The report as described in paragraph (1) shall be sent no later than 15 (fifteen) calendar days after the arrival date of goods at the port of unloading using a form as described in Attachment V to this Ministerial Regulation.

Article 38

(1) IT-MB shall report the circulation of alcoholic drinks of class A, class B and class C to Dirjen Daglu in this case the Import Director.

(2) Distributors and sub distributors of alcoholic drinks shall report the circulation of alcoholic drinks of class Band class C to Dirjen PDN in this case the Director of Market and Distribution Development.

(3) Copies of the report as described in paragraph (1) and paragraph (2) shall be addressed to:

• a. the Director General of Taxation, Ministry of Finance;
• b. the Director General of Customs and Excise, Ministry of Finance;
• c. the Head of the Drug and Food Supervisory Board;
• d. the Director of Supervision of Goods in Circulation and Services, Ministry of Trade;
• e. the Head of the Provincial Office; and
• f. the Head of the Regency/Municipal Office.

(4) PTBB selling alcoholic drinks shall report the circulation and sales of alcoholic drinks of class A, class B and class C to the Governor in this case the Head of the Provincial Office, with copies addressed to:

• a. the Director General of Domestic Trade, Ministry of Trade;
• b. the Director General of Taxation, Ministry of Finance;
• c. the Director General of Customs and Excise, Ministry of Finance;
• d. the Head of the Drug and Food Supervisory Board; and
• e. the Head of the Regency/Municipal Office.

(5) Direct sellers and retailers shall report the sales f alcoholic drinks to the Regent/Mayor in this case the Head of the Regency/Municipal Office, with a copy addressed to the Governor in this case the Head of the Provincial Office or the Governor of DKI Jakarta in this case the Head of the Provincial Office.

(6) Direct sellers and/or retailers of alcoholic drinks of class B containing spice, herbal medicines and the like shall report the sales of alcoholic drinks of class B to the Regent/Mayor in this case the Head of the Regency/Municipal Office with a copy addressed to the Governor in this case the Head of the Provincial Office or the Governor of DKI Jakarta in this case the Head of the Provincial Office.

(7) The reports as described in paragraph (1), paragraph (2), paragraph (4), paragraph (5) and paragraph (6) shall be submitted every quarter in the current calendar year as follows:

• - reports in the quarter I are submitted on March 31;
• - reports in the quarter II are submitted on June 30;
• - reports in the quarter III are submitted on September 30; and
• - reports in the quarter IV are submitted on December 31;

(8) The models of the reports as described in paragraph (1), paragraph (2), paragraph (4), paragraph (5) and paragraph (6) shall follow those contained in Attachment VI to this Ministerial Regulation.

Article 39

IT-MB, distributors, sub distributors, direct sellers, and retailers shall provide information on their business activities if such information is needed any time by the Minister, appointed official or official issuing SIUP-MB.

CHAPTER VIII
SANCITONS

Article 40

(1) Companies violating provisions in Article 26 paragraph (1), paragraph (2), Article 24, Article 36, Article 37, Article 38 and Article 39 shall be liable to administrative sanctions by having their SIUP-MB temporarily suspended after receiving 3 (three) consecutive written warnings at an interval of 1 (one) month.

(2) The temporary suspension as described in paragraph (1) shall be done by the official issuing SIUP-MB/appointed official.

(3) While SIUP-MB is temporarily suspended, the relevant companies are banned from circulating and/or selling alcoholic drinks.

(4) The temporarily suspended SIUP-MIB can be reactivated if the relevant companies have heeded the written warnings by making improvements and fulfilling their obligations according to this regulation.

Article 41

(1) Companies violating provisions in Article 14 paragraph (1), Article 15, Article 16 paragraph (2), Article 28, Article 29, Article 31, Article 32 and Article 33 shall be liable to an administrative sanction by having their SIUP-MB temporarily suspended by the official issuing SIUP-MB/appointed official.

(2) If the companies do not heed provisions in paragraph (1) within 30 (thirty) days they shall be liable to an administrative sanction by having their SIUP-MB revoked.

(3) The revocation of SIUP-MB as described in paragraph (2) shall be done by the official issuing SIUP-MB/appointed official.

(4) The companies that have had their SIUP-MB revoked, can file an objection to the official issuing SIUP-MB/appointed official no later than 30 (thirty) working days after the date of revocation.

(5) The official issuing SlUP-MB/appointed official as described in paragraph (3) no later than 15 (fifteen) working days after receiving the objection can accept or reject the objection by giving reasons.

(6) If the objection is accepted, the already-revoked SIUP-MB can be issued again.

(7) MB companies that have had their SlUP-MB revoked are not allowed to engage in alcoholic drink trade for 1 (one) year after the date of revocation.

Article 42

Any individual or corporate body violating provisions in Article 6 paragraph (1), Article 19, Article 27, Article 30 and Article 31 shall be liable to a criminal sanction according to the law.

Article 43

IT-MB violating provisions in Article 8 paragraph (7), Article 9 paragraph (1), Article 28 and Article 33 of this Ministerial Regulation shall be liable to a sanction by having their IT-MB status revoked and/or a criminal sanction according to the law.

Article 44

(1) Producers violating provisions in Article 28 and Article 36 paragraph (1) shall be liable to an administrative sanction by having their technical licenses temporarily suspended or revoked by the authorized official.

(2) If the producers are liable to an administrative sanction as described in paragraph (1), the Minister or appointed official shall issue a recommendation on the revocation of technical licenses to the relevant agency/authorized official.

CHAPTER IX
TRANSITIONAL PROVISIONS

Article 45

When this Ministerial Regulation begins to take effect:

(1) IT-MB status granted before this Ministerial Regulation is put into force shall remain valid for 3 (three) years after the date of stipulation and can be extended according to this Ministerial Regulation.

(2) The letter of assignment to import and distribute alcoholic drinks that have been issued by the Minister of Trade to PT. (Persero) Sarinah under Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Goods Subject to Import Regulation that is several times amended the latest by Decree of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004 shall remain valid until its validity period expires.

Article 46

Companies filing applications for SIUP-MB of class B and/or class C which are still under the process of settlement before the stipulation of this Ministerial Regulation shall file another applications for SIUP-MB to the authorized official according to this Ministerial Regulation.

CHAPTER X
OTHER PROVISIONS

Article 47

(1) To further regulate the procurement, circulation, sales, supervision and control of alcoholic drinks the Government and Regional Governments shall adhere to this Ministerial Regulation.

(2) The further regulation as described in paragraph (1) is not allowed to regulate any form of levies including those in the process of applying for, issuing and extending SIUP-MB and IT-MB is exempt from administrative fees, except those laid down in Presidential Decree No. 3/1997 concerning the Supervision and Control of Alcoholic Drinks.

Article 48

Technical guidance for the procurement, circulation, sales, supervision and control of alcoholic drinks as described in this Ministerial Regulation is to be stipulated by Dirjen Daglu or Dirjen PDN.

CHAPTER XI
CONCLUSION

Article 49

With the stipulation of this Ministerial Regulation:

(1) Provisions in Article 2 and Attachment I with HS numbers HS 2203 00 000; 2204 10 000; 2204 21 100; 2204 21 200; 2204 21 900; 2204 29 100; 2204 29 200; 220429900; 220430000; 2205 10000; 2205 90000; 2206 00 100; 220600200; 2206 00 300; 2206 00400; 2206 00 500; 220600900; 2208 20000; 2208 30000; 220840000; 220850000; 2208 60000; 2208 70000; 2208 90 000 in Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Goods Subject to Import Regulation as has been several times amended the latest by Decree of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004; and

(2) Regulation of the Minister of Trade No. 15/M-DAG/PER/3/2006 concerning the Supervision and Control of Import, Circulation and Sales, and Licensing of Alcoholic Drinks;

shall be declared null and void.

Article 50

This Ministerial Regulation shall come into force as from January 1, 2010.

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

Stipulated in Jakarta
on September 15, 2009
THE MINISTER OF TRADE,
signed,
MARI ELKA PANGESTU