REGULATION OF THE MINISTER OF TRADE
No. 01/M-DAG/PER/1/2008

CONCERNING
PROVISION FOR IMPORT OF LIQUEFIED PETROLEUM GAS (LPG) AND LPG CONTAINER WEIGHING 3 KILOGRAM

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

Considering:

• a. that in the context of security and smooth flow in implementing the Government's policy on the conversion plan for use of liquefied petroleum gas allocated for home necessities and micro business, it is necessary to govern provisions on LPG import and LPG container weighing 3 kilogram;
• b. that procurement of LPG and LPC Container weighing 3 kilogram for the conversion plan for use of liquefied petroleum gas may be imported if domestic production is insufficient;
• c. that based on the consideration as described in a and b, it is necessary to stipulate Regulation of the Minister of Trade;

In view of:

• 1. Trade Law of 1934 (Statute Book 1938 No. 86);
• 2. Law of the Republic of Indonesia No. 5/1984 concerning Industry (Statute Book of the Republic of Indonesia No. 22/1984, Supplement to Statute Book of the Republic of Indonesia No. 3274);
• 3. Law of the Republic of Indonesia No. 7/1994 concerning Ratification of Agreement on Establishing The World Trade Organization (Statute Book of the Republic of Indonesia No. 57/1994, Supplement to Statute Book of the Republic of Indonesia No. 3564);
• 4. Law of the Republic of Indonesia No. 10/1995 concerning Customs (Statute Book of the Republic of Indonesia No. 75/1995, Supplement to Statute Book of the Republic of Indonesia No. 3612) that is amended by Law of the Republic of Indonesia No. 17/2006 (Supplement to Statute Book of the Republic of Indonesia No. 93/2006, Supplement to Statute Book of the Republic of Indonesia No. 4661);
• 5. Law of the Republic of Indonesia No. 5/1999, concerning Prohibition from Monopoly Practice and Unfair Business Competition (Statute Book of the Republic of Indonesia No. 33/1999, Supplement to Statute Book of the Republic of Indonesia No. 3817);
• 6. Law of the Republic of Indonesia No. 8/1999 concerning Consumer Protection (Statute Book of the Republic of Indonesia No. 42/1999, Supplement to Statute Book of the Republic of Indonesia No. 3821);
• 7. Law of the Republic of Indonesia No. 15/2001 concerning Brands (Statute Book of the Republic of Indonesia No. 110/2001, Supplement to Statute Book of the Republic of Indonesia No. 4131);
• 8. Law of the Republic of Indonesia No. 22/2001 concerning Natural Oil and Gas (Statute Book of the Republic of Indonesia No. 136/2001, Supplement to Statute Book of the Republic of Indonesia No. 4152);
• 9. Regulation of the Government of the Republic of Indonesia No. 102/2000 concerning National Standardization (Statute Book of the Republic of Indonesia No. 199/2000, Supplement to Statute Book of the Republic of Indonesia No. 4020);
• 10. Regulation of the Government of the Republic of Indonesia No. 58/2001 concerning Development and Supervision of Consumer Protection Implementation (Statute Book of the Republic of Indonesia No. 103/2001, Supplement to Statute Book of the Republic of Indonesia No. 4126);
• 11. Decision of the President of the Republic of Indonesia No. 260/1967, concerning Confirmation of Duty and Responsibility of the Minister of Trade in Foreign trade Sector;
• 12. Decision of the President of the Republic of Indonesia No. 187/M/2004 concerning the Establishment of United Indonesia Cabinet that is amended several times and the last by Decision of the President of the Republic of Indonesia No. 171/M of 2005;
• 13. Regulation of the President of the Republic of Indonesia No. 9/2005 concerning the Status, Task, Function, Organizational Structure, and Work Procedure of the Ministries of the Republic of Indonesia that is amended several times and the last by Regulation of the President of the Republic of Indonesia No. 94/2006;
• 14. Regulation of the President of the Republic of Indonesia No. 10/2005, concerning Organizational Unit and Duty of First Echelon of the State Ministry of the Republic of Indonesia that is amended several times and the last by Regulation of the President of the Republic of Indonesia No. 17/2007;
• 15. Regulation of the President of the Republic of Indonesia No. 104/2007, concerning Supply, Distribution and Stipulation of Price for 3 Kilogram Container of Petroleum Gas;
• 16. Decision of the Minister of Industry and Trade of the Republic of Indonesia No. 229/MPP/Kep/7/1997 concerning General Provision in Import;
• 17. Decision of the Minister of Industry and Trade of the Republic of Indonesia No. 634/MPP/Kep/9/2000 concerning Provision and Procedure for the Supervision over Goods and/or Services Circulating on the Market;
• 18. Regulation of the Minister of Trade of the Republic of Indonesia No. 01/M-DAG/PER/3/2005, concerning Organization and Work Procedure of the Department of Trade that is amended several times and the last by Regulation of the Minister of Trade of the Republic of Indonesia No. 34/M-DAG/PER/8/2007;
• 19. Regulation of the Minister of Industry of the Republic of Indonesia No. 19/M-IND/PER/5/2006 concerning Standardization, Development and Supervision of Indonesia National Standard in the Industrial sector;
• 20. Regulation of the Minister of Trade of the Republic of Indonesia No. 14/M-DAG/PER/3/2007concerning Obligatory Standardization of Service in the Trade and Supervision of Indonesia National Standard (SNI) of traded Goods and Services that is amended by Regulation of the Minister of Trade of the Republic of Indonesia No. 30/M-DAG/PER/7/2007;
• 21. Regulation of the Minister of Trade of the Republic of Indonesia No. 31/M-DAG/PER/7/2007 concerning Importer Identification Number (API);
• 22. Regulation of the Minister of Industry of the Republic of Indonesia No. 92/M-IND/PER/11/2007, concerning Obligatory Enforcement of Indonesia National Standard on five (5) Industrial Products;
• 23. Regulation of the Minister of Industry of the Republic of Indonesia No. 93/M-IND/PER/11/2007, concerning Appointment of Justification Assessment Institution in the context of Application/Enforcement and Supervision of Obligatory Indonesia National Standard on five (5) Industrial Products;
• 24. Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia No. 021/2007 concerning Implementation of Supply and Distribution of Liquefied Petroleum Gas Container weighing 3 kilogram;
• 25. Decision of the Minister of Energy and Mineral Resources of the Republic of Indonesia No. 3175/K/12/MEM/2007, concerning Assignment of PT. Pertamina (limited company) and Decision on Particular Region for the Supply and Distribution of Liquefied Petroleum Gas Container weighing 3 kilograms for Year 2007;

With due observance of:

• 1. Memorandum of Understanding of the Department of Industry and State Ministry of State Owned Enterprise No. 522/M-IND/12/2005 and No. 581/MBU/2005 concerning Priority on the Use of Domestic Products;
• 2. Letter of the Minister of Energy and Mineral Resources No. 3249/26/MEM/2006 dated August 31, 2006 concerning the Result of Limited Coordinated Meeting on Diversification of Kerosene to LPG;
• 3. Letter from the Minister of Energy and Mineral Resources No. 1971/26/MEM.M/2007 dated May 22, 2007 concerning Assignment of Program on Implementation of Change from Kerosene Use to LPG;
• 4. The Result of Coordinated Cross Sector Meeting held on November 5, 2007, concerning the change from Kerosene Use to LPG and the Effort to Restore Real Sector;
• 5. The Result of Meeting held at the Office of the Vice President dated November 8, 2007, concerning Accelerated Conversion plan from Kerosene to LGP;

DECIDES:

To stipulate:

THE REGULATION OF THE MINISTER OF TRADE CONCERNING THE PROVISION ON IMPORTED LPG AND LPG CONTAINER WEIGHING 3 KILOGRAM

CHAPTER I
GENERAL PROVISION

Article 1

In this Regulation:

• 1. "Liquefied Petroleum Gas" hereinafter called as LPG refers to hydrocarbon gas liquefied with pressure to facilitate storage, transportation, and handling which basically consists of propane, butane, or mixture of the two that is included in Tariff Post/HS. 2711 (other petroleum gas and hydrocarbon gas), Tariff Post/HS.2711.11.00.00 (natural gas), Tariff Post/HS. 2711.12.00.00 (propane), and Tariff Post/HS. 2711.13.00.00 (butane).
• 2. "3 kilograms weight LPG Container" hereinafter called as LPG Container weighing 3 kilograms refers to container for gas below pressure or liquefied gas, made from iron or steel with the capacity/content weight of 3 kilograms that is included in Tariff Post ex. HS/7311.09.91.00.
• 3. "Importer" refers to company in the form of legal entity that assigned by the Government to import LPG together with the 3 kg LPG Container specially used in the context of the conversion plan from kerosene use to LPG Container of 3 kilograms weight.
• 4. "Recommendation" refers to certificate issued by the relevant agency/unit explaining the technical means of use but does not constitute import permit/approval.
• 5. "Director General of Foreign Trade" refers to the Director General of Foreign trade of the Department of Trade.
• 6. "Director General of Oil and Gas" refers to the Director General of Natural Oil and Gas of the Department of Energy and Mineral Resources.
• 7. "Director General of ILMTA" refers to Director General of Metal, Machinery, Textile and Multifarious Industries of the Department of Industry.
• 8. "Minister" refers to the Ministers whose duty and responsibility are in the trade sector.

Article 2

(1) The Importer that will handle importation of LPG shall be obliged to submit written application to the Minister through the Director General of Foreign Trade using the application letter form as described in Attachment I to this Ministerial Regulation by attaching the following required documents:

• a. General Commercial Business Permit for LPG;
• b. Importer Identification Number (API);
• c. Obligatory Taxpayer Identification Number;
• d. Customs Identity Number (NIK); and
• e. Recommendation from the Director General of Oil and Gas.

(2) The Importer that will handle importation of the 3 kilograms LPG Container shall be obliged to submit written application to the Minister through the Director General of Foreign Trade using the application letter form as described in Attachment II to this Ministerial Regulation and by attaching the required documents as follows:

• a. Assignment from the Government;
• b. Importer Identification Number (API);
• c. Obligatory Taxpayer Identification Number (NPWP);
• d. Customs Identity Number (NIK); and
• e. Recommendation from Inspector General of ILMTA.

(3) In certain circumstances, in order secure availability of LPG and 3 kilograms LPG Container, the Government may assign other companies as importer other than the importer as described in paragraphs (1) and (2), and the companies concerned shall be obliged to comply with the requirement as described in paragraphs (1) and (2).

Article 3

(1) The Importer as described in Article 2, prior to importing LPG and/or the 3 kilograms LPG Container shall be obliged to first obtain approval of the Minister based on the recommendations below from:

• a. The Director General of Oil and Gas, for importation of LPG; or
• b. The Director General of ILMTA, for importation of 3 kilograms LPG Container.

(2) The recommendation as described in paragraph (1) shall state the data on the type, the number of goods and the import period.

Article 4

The imported 3 kilograms weight LPG Container shall comply with the quality standard and technical specification according to the SNI application.

Article 5

(1) The Importer having obtained approval for import shall be obliged to submit written report on realization of LPG import to the Minister through the Director General of Foreign Trade with copy to the Director General of Oil and Gas through the Director of Downstream Oil and Gas Business Development within the next 15 (fifteen) days every month on import realization.

(2) The Importer that has obtained approval for import shall be obliged to submit written report on realization to the Minister through the Director General of Foreign Trade with copy to the Director General of ILMTA through the Director of Metal Industry within the next 15 (fifteen) days every month on report on import realization.

Article 6

Any Importer violating the provisions governed in this Ministerial Regulation, shall be charged penalty in accordance with the prevailing statutory regulations.

Article 7

Implementation or technical provisions are not yet covered in this Ministerial Regulation will be stipulated by the Director General of Foreign Trade.

Article 8

This Ministerial Regulation shall take effect on the date it is stipulated.

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

Stipulated in Jakarta
on January 21, 2008
MINISTER OF TRADE
signed,
MARI ELKA PANGESTU