REGULATION OF THE MINISTER OF TRADE
No. 42/M-DAG/PER/9/2009

CONCERNING
PROVISIONS ON THE EXPORT AND IMPORT OF NATURAL OIL AND GAS

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

Considering:

• a. that natural oil and gas are strategic non renewable natural resources which constitute vital commodities to serve the interests of all people and play an important role in the national economy and therefore, the management of natural oil and gas on a national scale must be able to contribute to the prosperity and welfare of the Indonesian people;
• b. that to support the supply of natural oil and gas, the release and entry of natural oil and gas from and to the domestic market need to be set forth in a policy on the export and import of natural oil and gas in the interests of natural oil and gas businesses;
• c. that based on the considerations as described in paragraph a and b, it is needed a regulation on the export and import of natural oil and gas;
• d. that based on the considerations as described in paragraph 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. 10/1995 concerning Customs (Statute Book No. 75/1995, 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);
• 3. Law No. 22/2001 concerning Natural Oil and Gas (Statute Book No. 136/2001, Supplement to Statute Book No. 4152);
• 4. Government Regulation No. 36/2004 concerning Natural Oil and Gas Downstream Business Activities (Statute Book No. 124/2004, Supplement to Statute Book No. 4436);
• 5. Presidential Decision No. 260/1967 concerning the Affirmation of Tasks arid Responsibilities of the Minister of Trade in the Foreign Trade Sector;
• 6. Presidential Decision No. 21/2001 concerning the Supply and Service of Lubricating Oil;
• 7. Presidential Decision No. 187/M/2004 concerning the Formation of the United Indonesia Cabinet that is several times amended the latest by Presidential Decision No. 171/M/2005;
• 8. Presidential Regulation No, 9 of 2005 concerning the Position, Task, Function, Organizational Structure and Work Mechanism of Ministries of the Republic of Indonesia that is several times amended the latest by Presidential Regulation No. 20/2008;
• 9. Presidential Regulation No. 10/2005 concerning the Organizational Unit and Task of First Echelon Officials of the Ministries of the Republic of Indonesia that is several times amended the latest by Presidential Regulation No. 50/2008;
• 10. Decision of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in Import;
• 11. Decision of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning General Provisions in Export that is several times amended the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007;
• 12. 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;
• 13. Regulation of the Minister of Energy and Mineral Resources No. 0007/2005 concerning Qualifications and Guidance for the Realization of Business Permits in the Natural Oil and Gas Downstream Business Activities;
• 14. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer's Identity Number (API);
• 15. Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2008 concerning Provisions on the Import of Liquefied Petroleum Gas (LPG) and 3-kg LPG cylinders;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE EXPORT AND IMPORT OF NATURAL OIL AND GAS

Article 1

In this Ministerial Regulation:

• 1. "Natural oil and gas" refers to natural oil and natural gas.
• 2. "Executing body" refers to a body formed to control upstream business activities in the field of natural oil and gas.
• 3. "Corporate body" hereinafter abbreviate as BU, refers to a company in the form of legal entity carrying out permanent and continuous business, formed according to the law and working and domiciled in the territory of the Republic of Indonesia.
• 4. "Permanent business establishment" hereinafter abbreviate as BUT refers to a corporate body formed and having legal status outside the territory of the Unitary State of the Republic of Indonesia, carrying out activities in the territory of the Unitary State of the Republic of Indonesia and put under an obligation to adhere to the laws and regulations in the Republic of Indonesia.
• 5. "Direct user" refers to a corporate body receiving an import recommendation from the Energy and Mineral Resources Minister to import natural oil and gas to serve its own interests rather than for sales.
• 6. "Recommendation" refers to a letter of consideration to issue natural oil and gas export or import approvals from the Director General of Natural Oil and Gas on behalf of the Minister of Energy and Mineral Resources to the Minister in this case the Director General.
• 7. "Director General of Oil and Gas" refers to the Director General of Natural Oil and Gas; Ministry of Energy and Mineral Resources.
• 8. "Director General" refers to the Director General of Foreign Ministry of Trade of Trade.
• 9. "Minister of ESDM" refers to the Minister of Energy and Mineral Resources.
• 10. "Minister" refers to the Minister of Trade.

Article 2

(1) Natural oil and gas described in this Ministerial Regulation consist of natural oil, natural gas, fuel oil (BBM), fuel gas (BBG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), other fuels and processing products as contained in the attachment which is an integral part of this Ministerial Regulation.

(2) The natural oil and gas described in paragraph (1) can only be exported by:

• a. the executing body, BU, and BUT, for natural oil and gas upstream business activities; and
• b. BU, for natural oil and gas downstream business activities.

(3) The natural oil and gas described in paragraph (1) can only be imported by:

• a. BU, for natural oil and gas downstream business activities; and
• b. direct users.

Article 3

(1) The natural oil and gas described in Article 2 can be exported or imported after considering the condition of domestic supplies and needs.

(2) Based on the consideration as described in paragraph (1), the Minister of ESDM in this case the Director General of Oil and Gas issues a recommendation on the types and quantities of natural oil and gas that can be exported or imported.

Article 4

(1) The executing body, BU, and BUT as described in Article 2 paragraph (2) a and BU as described in Article 2 paragraph (2) b that export natural oil and gas shall secure prior export approvals from the Minister.

(2) BU as described in Article 2 paragraph (3) a and direct users as described in Article 2 paragraph (3) b that import natural oil and gas shall secure prior import approvals from the Minister.

(3) To secure natural oil and gas export approvals, the executing body as described in Article 2 paragraph (2) a and BU as described in Article 2 paragraph (2) b shall propose written applications to the Minister in this case the Director General, accompanied by:

• a. photocopies of taxpayer code number (NPWP); and
• b. export recommendations from the Minister of ESDM in this case the Director General of Oil and Gas.

(4) To secure natural oil and gas export approvals, BU and BUT as described in Article 2 paragraph (2) a shall propose written applications through the Executing Body to the Minister in this case the Director General, accompanied by:

• a. photocopies of taxpayer code number (NPWP); and
• b. export recommendations from the Minister of ESDM in this case the Director General of Oil and Gas.

(5) To secure natural oil and gas import approvals, BU as described in Article 2 paragraph (3) a and direct users as described in Article 2 paragraph (3) b shall File written applications to the Minister in this case the Director General, accompanied by:

• a. photocopies of taxpayer code number (NPWP);
• b. photocopies of importer's identity number (APl);
• c. photocopies of customs identification number (NIK); and
• d. import recommendations from the Minister of ESDM in this case the Director General of Oil and Gas.

(6) Based on the written applications for natural oil and gas export or import approvals as described in paragraph (3), paragraph (4), and paragraph (5), the Director General on behalf of the Minister shall issue natural oil and gas export or import approvals no later than 7 (seven) working days after the applications have been received in a complete and correct way.

(7) Natural oil and gas export approvals for BU and BUT as described in paragraph (4) shall be issued through the executing agency.

Article 5

(1) The executing agency, BU, and BUT as described in Article 2 paragraph (2} a and b that have secured export approvals, and BU and direct users as described in Article 2 paragraph (3) a and b that have secured natural oil and gas import approvals as described in Article 4 paragraph (6) shall submit reports on the realization of natural oil and gas exports or imports in writing to:

• a. the Minister in this case the Director General; and
• b. the Minister of ESDM in this case the Director General of Oil and Gas.

(2) The reports as described in paragraph (1) shall be submitted no later than 15 (fifteen) days after the natural oil and gas exports or imports have been realized.

Article 6

(1) The executing agency, BU, and BUT that violate provisions in Article 4 paragraph (1) shall be liable to a sanction by suspending their natural oil and gas exports in the ensuing period.

(2) BU and direct users that violate provisions in Article 4 paragraph (2) shall be liable to a sanction by suspending their natural oil and gas imports in the ensuing period.

(3) The abuse of natural oil and gas export approvals by the executing agency, BU and BUT or the abuse of natural oil and gas import approvals by BU and direct users as described in Article 4 paragraph (6), or the violation of the obligation to submit written reports by the executing agency, BU, BUT or direct users as described in Article 5 shall lead to the imposition of a sanction by suspending their natural oil and gas exports or imports in the ensuing period.

Article 7

To supervise the implementation of this Ministerial Regulation, the Director General, along with the Director General of Oil and Gas can set up a team of officials to evaluate the realization of natural oil and gas exports and imports.

Article 8

When this Ministerial Regulation begins to take effect:

• 1. provisions on natural oil and gas as goods whose exports are put under surveillance as laid down in Decision of the Industry and Minister of Trade No. 558/MPP/Kep/12/1998 concerning General Provisions in Export that is several times amended the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007; and
• 2. provisions on the import of liquefied petroleum gas (LPG) for special purposes under a kerosene to LPG conversion program using 3 kg cylinders as laid down in Regulation of the Minister of Trade No. 01/M-DAG/PER/l/2008 concerning provisions on the import of liquefied petroleum gas (LPG) and 3-kg LPG cylinders;

shall be declared null and void.

Article 9

Further provisions needed to implement this Ministerial Regulation may be stipulated by the Director General.

Article 10

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

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

Stipulated in Jakarta
on September 14, 2009
THE MINISTER OF TRADE
signed,
MARI ELKA PANGESTU