REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-01/BC/2006

ON
TECHNICAL DIRECTIVES FOR REGULATION OF THE MINISTER OF FINANCE
No. 78/PMK.010/2005
ON
EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS FOR ACTIVITIES OF
GEOTHERMAL EXPLOITATION ON THE BASIS OF CONTRACTS BEFORE
LAW No. 27/2003 ON GEOTHERMAL COMES INTO FORCE

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering :

• a. that following the issuance of Regulation of the Minister of Finance No. 78/PMK.010/2005 on Exemption from Import Duty on the Import of Goods for Activities of Geothermal Exploitation on the Basis of Contracts Before Law No. 27/2003 on Geothermal comes into force;
• b. that based on the description as meant in letter a, it is necessary to stipulate a regulation of the Director General of Customs and Excise on Technical Directives for Regulation of the Minister of Finance No. 78/PMK.010/2005 on Exemption from Import Duty on the Import of Goods for Activities of Geothermal Exploitation on the Basis of Contracts Before Law No. 27/2003 on Geothermal comes into force;

In view of :

• a. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• b. Law No. 27/2003 on Geothermal (Statute Book of 2003 No. 115, Supplement to Statute Book No. 4327);
• c. Decree of the Minister of Finance No. 545/KMK.01/2003 on Stipulation of Systems of Classifications of Imported Goods;
• d. Decree of the Minister of Finance No. 547/KMK.01/2003 on Stipulation of Tariffs of Import Duty on Imported Goods;
• e. Decree of the Minister of Finance No. 302/KMK.01/2004 on the Organization and Working Arrangement of the Ministry of Finance as already amended by Decree of the Minister of Finance No. 426/KMK.01/2004;
• f. Regulation of the Minister of Finance No. 78/PMK.010/2005 on Exemption from Import Duty on the Import of Goods for Activities of Geothermal Exploitation on the Basis of Contracts Before Law No. 27/2003 on Geothermal comes into force;

DECIDES :

To stipulate :

THE REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON TECHNICAL DIRECTIVES FOR REGULATION OF THE MINISTER OF FINANCE NO. 78/ PMK.010/2005 ON EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS FOR ACTIVITIES OF GEOTHERMAL EXPLOITATION ON THE BASIS OF CONTRACTS BEFORE LAW NO. 27/2003 ON GEOTHERMAL COMES INTO FORCE

Article 1

(1) The import of goods for the need of activities of Geothermal Exploitation shall be exempt from import duty.

(2) The exemption from import duty as meant in paragraph (1) shall be granted to the Joint Operation Contract Contractors as meant in Article 1 point 2 of Regulation of the Minister of Finance No. 78/PMK.010/ 2005 on Exemption from Import Duty on the Import of Goods for Activities of Geothermal Exploitation on the Basis of Contracts Before Law No. 27/2003 on Geothermal comes into force, up to the expiration of the Join Operation Contracts (KOB).

Article 2

The Joint Operation Contract Contractors shall submit application for exemption from the import of goods for the need of geothermal to the Director General of Customs and Excise attn. the Director of Customs Facilities.

Article 3

(1) The application for exemption from import duty as meant in Article 2 shall be accompanied by Plan for the Import of Goods (RIB) minimally containing elements of the following data :

• a. name of joint operation contract contractor;
• b. taxpayer code number (NPWP);
• c. address;
• d. No. and date of Joint Operation Contract as meant in Article 1 point 1 of Regulation of the Minister of Finance No. 78/PMK.010/2005;
• e. Contract area;
• f. No. and date of RIB;
• g. No., date and validity period of contract of procurement of the said goods;
• h. Description of the quantity and kinds of goods as required in provisions on procedures for completing document of Import Declaration (PIN);
• i. Tariff heading;
• j. Estimated price/customs value;
• k. Customs and Excise Service Office overseeing the import place of goods;
• I. Name and signature of the authorized executive, manager or official of joint operation contract contractor; and
• m. Seal of joint operation contract contractor.

(2) Copy of the RIB as meant in paragraph (1) shall be conveyed to the Director General of Mineral, Coal and Geothermal, Ministry of Energy and Mineral Resources.

Article 4

(1) The Director of Customs Facilities shall examine legitimacy of applicants and truth of description of the quantity and kinds of goods for which the exemption from import duty as meant in Article 3 are requested, by referring to the Indonesian Import Duty Tariff Book (BTBMI).

(2) Based on result of the examination as meant in paragraph (1), the Director of Customs Facilities on behalf of the Minister of Finance shall issue a decree of the. Minister of Finance on Exemption for Import Duty on the Import for the Need of Activities of Geothermal Exploitation with a copy made available to the Director of Verification and Audit, for a period not later than 12 months.

Article 5

(1) The import of goods securing the exemption from import duty only can be realized through the Customs and Excise Service Office overseeing the import place of goods mentioned in the decree of the Minister of Finance as meant in Article 4 paragraph (2).

(2) Any change in the Customs and Excise Service Office as meant in paragraph (1) shall be submitted by Joint Operation Contract Contractors to the Director of Customs Facilities as long as the quantity and kinds of goods to be imported through the Customs and Excise Service Office can be ascertained,

(3) Approval of the change in the Customs and Excise Service Office as meant in paragraph (2) shall be granted in the form of notification being part inseparable from the decree of the Minister of Finance as meant in Article 4 paragraph (2).

Article 6

(1) The provisions on customs procedures in the import field shall apply to the import of goods securing the exemption from import duty as meant in Article 4 paragraph (2).

(2) Fulfillment of requirements for the provisions on prohibited goods, import restriction and control shall be realized upon submitting Import Declaration (PIB) to the Customs and Excise Service Office as meant in Article 5.

Article 7

For the purpose of supervision, Joint Operation Contract Contractors shall :

• a. convey to the Director General of Customs and Excise attn, the Director of Customs Facilities :
• 1. copy of joint operation contract;
• 2. copy of stipulation of contract area; and
• 3. specimen of corporate seal and signature of executive, manager or official authorized to sign application and RIB.
• b. report the realization of the import of goods to the Director General of Customs and Excise attn. the Director of Verification and Audit in not later than 30 (thirty) days after the realization of the last import of goods securing the exemption from import duty as meant in Article 3 paragraph (2).

Article 8

The regulation shall come into force as from the date of stipulation.

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

Stipulated in Jakarta
On January 18, 2006
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,
sgd
EDDY ABDURRACHMAN