REGULATION OF THE MINISTER OF FINANCE CONCERNING THE EXEMPTION OF IMPORT DUTY ON IMPORTED MACHINES, GOODS AND MATERIALS FOR THE BUILDING OR DEVELOPMENT OF INDUSTRIES WITHIN THE FRAMEWORK OF INVESTMENT.
In this Regulation of the Minister of Finance:
1. Building is the building of new companies or plants to produce goods and/or services.
2. Development is the development of the existing companies or plants covering the addition, modernization, rehabilitation and/or restructuring of production means including machines to increase the number, type, and/or quality of products.
3. Machine is any machine, machinery, and plant installation means, appliances or utensils, either built-up or knocked-down, used to build or develop industries.
4. Goods and materials are all goods or materials, irrespective of their types and composition, used as materials or components to produce finished goods.
5. Company is company carrying out the building or development of industry within the framework of investment and especially for foreign investment it must be in the form of limited liability company.
6. Investment is all types of investment, either foreign or domestic investment, to carry out business in the territory of the Republic of Indonesia.
7. Transfer is the transfer of rights, assets, change in the use of machine to carry out other activities than business activities, export or scrap from corporate assets.
8. Force majeur is condition such as fire, natural disaster, riot, war or other happenings beyond the capacity of human beings.
9. Minister is the Minister of Finance of the Republic of Indonesia.
(1) The import of machine, goods and materials by companies engaged in:
can be granted exemption of import duty facilities.
(2) The industries producing services as intended in paragraph (1) b are the same as those set in Attachment to this Regulation of the Minister of Finance which is an integral part of the regulation.
(3) The import duty exemption as intended in paragraph (1) is given while the machines, goods and materials:
(1) Import duty exemption for the import of machines for the building of industries as intended in Article 2 paragraph (1) is granted for the import period of 2 (two) years after a decision on the granting of import duty exemption takes effect.
(2) The import period as intended in paragraph (1) can be extended according to the period of time for the building of industries as contained in the import approval.
(3) Companies that have completed the building of industries as intended in paragraph (1) and paragraph (2) and are ready for production/ except those producing services/ can be granted import duty exemption for the import of goods and materials to meet production needs for a maximum of 2 (two) years/ according to their installed capacity with the import period of 2 (two) years after the decision on the granting of import duty exemption is issued.
(4) Companies that have obtained facilities as intended in paragraph (3) but have not wholly realized their imports within a period of 2 (two) years/ can be given another 1 (one) yea r for the import of goods and materials after the expiry of import duty exemption based on the decision as intended in paragraph (3).
(1) Import duty exemption for the import of machines for the development of industries is given for the import period of 2 (two) years after the decision on import duty exemption takes effect.
(2) The import period as intended in paragraph (1) can be extended according to the period of time for the development of the industries as contained. in the investment approval.
(3) Companies that have completed the development of industries/ except those producing services, provided to increase their capacity by at least 30% of their installed capacity, can be granted import duty exemption for the import of goods and materials to meet additional production need for a maximum of 2 (two) years/ for the import period of 2 (two) years after the decision on import duty exemption takes effect;
(4) Companies that have obtained import duty exemption as intended in paragraph (3) but have not wholly realized their imports within a period of 2 (two) years, can be given another 1 (one) year for the import of goods and materials after the expiry of import duty exemption as intended in paragraph (3).
(1) If companies carry out the building or development of industries, except those producing services, using locally made machines of at least 30% (thirty percent) of the total value of machines, the import of goods and materials can be granted import duty exemption as intended in Article 2 paragraph (1) for production needs/additional production needs for 4 (four) years according to their installed capacity, with the import period of 4 (four) years after the decision on import duty exemption takes effect.
(2) The minister responsible for the industrial sector or the appointed official shall set provisions on the use and composition of locally-made machines as intended in paragraph (1).
The import duty exemption facilities as intended in Artic1e4 and Article 5 shall not apply to motor vehicle assembling industries, except motor vehicle component industries.
(1) To obtain import duty exemption facilities for the import of machines, goods and materials for the building of industries, companies shall file applications signed by the company leadership to the Investment Coordinating Board.
(2) The applications for import duty exemption facilities for the import of machines as intended in paragraph (1) shall be complete with:
(3) Applications for import duty exemption facilities for the import of goods and materials as intended in paragraph (1) shall be complete with:
(1) To obtain import duty exemption facilities for the import of machines, goods and materials for the development of industries, companies shall file applications signed by the company leadership to the Head of the Investment Coordinating Board.
(2) The applications for import duty exemption facilities for the import of machines as intended in paragraph (1) shall be complete with:
(3) The applications for import duty exemption facilities for the import of goods and materials as intended in paragraph (1) shall be complete with:
(1) In connection with the applications as intended in Article 7 and Article S, the Head of the Investment Coordinating Board on behalf of the Minister shall give approval or rejection.
(2) If the applications are approved, the Head of the Investment Coordinating Board on behalf of the Minister shall issue decisions on import duty exemption complete at least with list of volume, type, and technical specifications in details, and the estimate of the prices of machines, goods and materials granted import duty exemption as well as the port of entry.
(3) If the applications are rejected, the Head of the Investment Coordinating Board on behalf of the Minister shall issue letters of rejection by mentioning the reasons for the rejection.
(4) Copies of decisions on import duty exemption as intended in paragraph (2) and/or the cancellation of decisions on import duty exemption shall be conveyed to the Director General of Customs and Excise and the Head of the Customs Office where goods are entered.
(5) The approval or rejection as intended in paragraph (1) shall be given no later than 7 (seven) working days after the applications have been received in a complete manner.
A change in decision on import duty exemption as intended in Article 9 paragraph (2) can be made only if:
The import of machines, goods and materials granted import duty exemption shall be subject to 'import ban and restriction in accordance with the law.
(1) The quantity and/or type of machines, goods and materials imported shall match the quantity or type of machines, goods and materials contained in decisions on import duty exemption as intended in Article 9 paragraph (2).
(2) In case of excess of volume and/or difference of the type of machines, goods and materials between the total import volume and that contained in the decision on import duty exemption, the companies shall pay import duties on the excess and/or difference of type.
Companies that obtain import duty exemption facilities shall convey reports to the Head of the Investment Coordinating Board on the import of machines, goods and materials granted import duty exemption for the building or development of industries.
(1) The machines and/or goods and materials granted import duty exemption facilities as intended in Article 3 and Article 4 shall be used by the relevant companies according to the aim of their entry.
(2) The machines as intended in paragraph (1) will be exempted from import duty due if:
(3) The transfer of machines to companies that do not obtain import duty exemption facilities within a period of less than 5 (five) years since the date of import customs notification shall lead to the cancellation of import duty exemption facilities and the companies shall pay:
(4) The transfer of machines to other parties including those caused by ferce majeur or exported as intended in paragraph (2) and paragraph (3) shall be done after obtaining a permit from the Director General of Customs and Excise on behalf of the Minister.
(5) If the transfer of machines to other parties including those caused by force majeur or exported as intended in paragraph (2) and paragraph (3) is done without any permit from the Director General of Customs and Excise on behalf of the Minister, the companies shall pay:
(6) The goods and materials as intended in paragraph (1) will be exempted from import duty due after obtaining a prior permit from the. Director General of Customs and Excise on behalf of the Minister, if:
(7) Due to the abuse of goods and materials as intended in paragraph (1) under other conditions than those referred to in paragraph (6) the companies shall pay import duty due and be liable to administrative sanction in the form of fine in accordance with the law and regulation in the customs field.
(8) The procedure of transferring machines and/or goods and materials to other parties is to be laid down in a Regulation of the Director General of Customs and Excise:
(1) The Head of the Investment Coordinating Board shall convey reports on the granting of import duty exemption facilities to the Minister through the Head of the Fiscal Policy Board.
(2) The reports as intended in paragraph (1) shall be conveyed every 6 (six) months, namely in July of the current year for the first semester report and in January of the ensuing year for the second semester report.
(3) The reports as intended in paragraph (2) constitute a list of import duty exemption facilities granted in the relevant semester and contain at least the following elements:
(4) The implementation of this Regulation of the Minister of Finance will be evaluated no later than 2 (two) years after it takes effect.
The procedure of granting import duty exemption facilities is to be laid down in a Regulation of the Head of the Investment Coordinating Board.
With the enforcement of this Regulation of the Minister of Finance, companies that have obtained import duty exemption facilities for the import of machines, goods and materials based on Decree of the Minister of Finance No. 135/KMK.05/2000 as amended several times, the latest by Regulation of the Minister of Finance No. 47/PMK.04/2005, and have not realized the import of the machines, goods and materials granted import duty reduction facilities, can use import duty exemption facilities based on this Regulation of the Minister of Finance by filing new applications to the Head of the Investment Coordinating Board, with copies addressed to the Director General of Customs
When this Regulation of the Minister of Finance begins to take effect:
shall be declared null and void.
This Regulation of the Minister of Finance shall come into force 30 (thirty) days after the date of promulgation.
For public cognizance, this Regulation of the Minister of Finance shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on November 16, 2009
THE MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI
LIST OF SERVICE PRODUCING INDUSTRIES THAT CAN OBTAIN IMPORT DUTY EXEMPTION
THE MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI