a. that in an effort to increase national production of natural oil and gas as well as geothermal energy, it is necessary to give fiscal incentives to upstream natural oil and gas exploration activities and geothermal exploration activities;
b. that based on consideration in a. and to implement provisions in Article 3 paragraph (2) b. 2) of Law No. 10/2010 concerning State Expenses and Revenue Budget Year 2011, it is necessary to stipulate Regulation of the Minister of Finance concerning Government Borne Value Added Tax on the Import of Goods for Upstream Natural Oil and Gas Exploration Activities and Geothermal Exploration Activities in Budget Year 2011;
1. Law No. 17/2003 concerning State Finance (Statute Book No. 47/2003, Supplement to Statute Book No. 4286);
2. Law No. 1/2004 concerning State Treasury (Statute Book No. 5/2004, Supplement to Statute Book No. 4355);
3. Law No. 10/2010 concerning State Expenses and Revenue Budget Year 2011 (Statute Book No. 126/2010, Supplement to Statute Book No. 5075);
4. Presidential Decree No. 56/P/2010;
5. Regulation of the Minister of Finance No. 228/PMK.05/2010 concerning Mechanism of Implementation and Responsibility of Government Borne Tax;
REGULATION OF THE MINISTER OF FINANCE CONCERNING GOVERNMENT BORNE VALUE ADDED TAX ON THE IMPORT OF GOODS FOR UPSTREAM NATURAL OIL AND GAS EXPLORATION ACTIVITIES AND GEOTHERMAL EXPLORATION ACTIVITIES IN BUDGET YEAR 2011
(1) Value Added Tax owed to the import of goods used for upstream natural oil and gas exploration and geothermal exploration activities by companies engaged in upstream natural oil and gas exploration activities or companies engaged in geothermal activities, shall be borne by the Government.
(2) Government Borne Value Added Tax as intended in paragraph (1) is subsidiary tax expenses borne by the Government as intended in Regulation of the Minister of Finance concerning Mechanism of Implementation and Responsibility of Government Borne Tax.
(3) The government-borne Value Added Tax as intended in paragraph (1) shall be given budget ceiling as provided for in Law No. 10/2010 concerning State Expenses and Revenue Budget Year 2011 and its amendment.
(1) The government-borne value added tax as intended in Article 1 shall be granted to goods really used for upstream natural oil and gas exploration and geothermal exploration activities on condition:
(2) The upstream natural oil and gas exploration activities as intended in paragraph (1) are activities aimed at obtaining information on geological conditions to find and get the estimate of natural oil and gas reserves in specified areas.
(3) The geothermal exploration activities as intended in paragraph (1) are a series of activities covering geological, geophysical and geochemical examination, trial drilling, and exploration well drilling aimed at obtaining and adding information on undersurface geological conditions to find and get the estimate of geothermal potentials.
The companies as intended in Article 1 paragraph (1) cover:
The goods as intended in Article 1 paragraph (1) are goods contained in the import notifications already given registration numbers by the Customs and Excise Control and Service Office or the Customs and Excise Primary Service Office at the port of entry after this Regulation of the Minister of Finance has taken effect.
(1) Applications for the government-borne value added tax on the import of goods used for upstream natural oil and gas exploration activities as intended in Article 2 paragraph (2) shall be filed to the Director General of Customs and Excise, accompanied by a plan for the import of goods (RIB) approved and validated by the Director General of Oil and Gas, Ministry of Energy and Mineral Resources, by observing provisions as intended in Article 2 paragraph (1).
(2) Applications for the government-borne value added tax on the import of goods used for geothermal exploration activities as intended in Article 2 paragraph (3) shall be filed to the Director General of Customs and Excise, accompanied by a plan for the import of goods (RIB) approved and validated by the Director General of New Energy, Renewable and Conservation Energy, Ministry of Energy and Mineral Resources, by observing provisions as intended in Article 2 paragraph (1).
(3) The plan for the import of goods (RIB) as intended in paragraphs (1) and (2) shall at least contain:
(4) The applications as intended in paragraph (1) or paragraph (2) shall be filed in 1 (one) RIB along with the applications for import duty exemptions as intended in Regulation of the Minister of Finance No. 177/PMK.011/2007 concerning the import duty exemptions for the import of goods for upstream natural oil, gas and geothermal business activities and its amendments.
(1) The Directorate General of Customs and Excise after receiving the documents as intended in Article 5, shall put stamps "GOVERNMENT BORNE VAT EX PMK 22/PMK.011/2011" on all sheets of Import Customs Notification and Tax Payment Forms.
(2) Copies of RIB as intended in Article 5 paragraph (1) or paragraph (2) shall be submitted to:
(3) The Director General of Customs and Excise shall convey a List of Government Borne Taxes every quarter to the Director General of Taxation c.q. Director of Obedient and Revenue Potential as proxy of Budget User for Government Borne Tax subsidiary expenses, no later than the end of the following month after the end of the quarter.
(4) Based on List of Government Borne Taxes as intended in paragraph (3), Director General of Taxation c.q. Director of Obedient and Revenue Potential instructs Official of Commitment Maker and Official who signs Payment Order in each duty to:
The Director General of Taxation and the Director General of Customs and Excise are instructed to implement provisions in this Regulation of the Minister of Finance.
This Regulation of the Minister of Finance shall come into force as from the date of promulgation until December 31, 2011.
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 February 7, 2011
THE MINISTER OF FINANCE,
signed,
AGUS D.W. MARTOWARDOJO