to Indonesian
a. that in the framework to support the development of motor vehicle assembly industry, it is necessary to grant exemption of import duty facility in the framework of investment;
b. that in order to provide legal certainty for companies that have obtained the import duty exemption facility in building and/or development but not yet realize the whole importation of goods and materials within 4 (four) years due to the provisions of the import trade in the form of import quotas, it is necessary to give additional importation period for goods and materials for those companies;
c. that in order to improve the monitoring of goods that have exemption of import duty facility in the framework of investment in order to avoid misuse of the provision of such facility, it is necessary to improve the arrangements concerning the transfer of machinery and/or goods and materials, obligation to report the realization of import, and monitoring mechanisms of those goods;
d. that based on the considerations as intended in paragraphs a, b and c, it is necessary to stipulate Regulation of the Minister of Finance concerning Amendment to Regulation of the Minister of Finance No. 176/PMK.011/2009 concerning the Exemption of Import Duty on Imported Machines, as well as Goods and Materials for the Building or Development of Industries in the Framework of Investment.
1. Law 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. 3612/1995) as amended by Law No. 17/2006 (Statute Book of the Republic of Indonesia No. 93/2006, Supplement to Statute Book of the Republic of Indonesia No. 4661);
2. Presidential Decree No. 56/P/2010;
3. Regulation of the Minister of Finance No. 176/PMK.011/2009 concerning The Exemption of Import Duty on Imported Machines, as well as Goods and Materials for the Building or Development of Industries in the Framework of Investment;
REGULATION OF THE MINISTER OF FINANCE CONCERNING AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE No. 176/PMK.011/2009 CONCERNING THE EXEMPTION OF IMPORT DUTY ON IMPORTED MACHINES, AS WELL AS GOODS AND MATERIALS FOR THE BUILDING OR DEVELOPMENT OF INDUSTRIES IN THE FRAMEWORK OF INVESTMENT
Several provisions in Regulation of the Minister of Finance No. 176/PMK.011/2009 concerning The Exemption of Import Duty on Imported Machines, as well as Goods and Materials for the Building or Development of Industries in the Framework of Investment shall be amended as follows:
1. Provision of paragraph (1) Article 5 is amended becomes as follows:
"Article 5
(1) Companies carry out the Building as intended in Article 3 paragraph (3) or Development as intended in Article 4 paragraph (3), while use locally made machines of at least 30% (thirty percent) of the total value of machines, can be granted import duty exemption as intended in Article 2 paragraph (1) on the import of Goods and Materials for the need of production/need of additional production 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)."
2. Between Article 5 and Article 6 is inserted 1 (one) Article, namely Article 5A which reads as follows:
"Article 5A
(1) Any company which has obtained the facility as intended in Article 5 paragraph (1) but not realize yet the whole importation of Goods and Materials within a period of 4 (four) years due to the provisions of the import trade in the form of import quotas, based on the rules of the minister who has responsible in trade, can be given an extension period of importation for 1 (one) year since the issuance the decree for extension approval, with the amount of remaining import allocation which has not been realized.
(2) Extension of period of importation as intended in paragraph (1) is given only for 1 (once).
(3) The provision of extension of importation period as intended in paragraph (1), by taking into account the amount of Goods and Materials for the production needs for 1 (one) year and consider setting a quota allocation that is given by the ministers who has responsible in trade."
3. Provision of Article 6 is amended, so it is read as follows:
"Article 6
The import duty exemption facility as intended in Article 3, Article 4 and Article 5 shall apply to motorized vehicle assembling industry include motorized vehicle component industry."
4. Provision of Article 7 is amended, so it is read as follows:
"Article 7
(1) To obtain import duty exemption facility for the import of Machines and/or Goods and Materials for the Building of industries, Company shall file application signed by the company leadership to the Head of Investment Coordinating Board.
(2) The applications for import duty exemption facility for the import of machines as intended in paragraph (1) shall be complete with:
(3) Applications for import duty exemption facility for the import of goods and materials as intended in paragraph (1) shall be complete with:
5. Provision of Article 8 is amended, so it read as follows:
"Article 8
(1) To obtain import duty exemption facility for the import of Machines and/or Goods and Materials for the Development of industries, Company shall file applications signed by the company leadership to the Head of the Investment Coordinating Board.
(2) The applications for import duty exemption facility for the import of Machines as intended in paragraph (1) shall be complete with:
(3) The applications for import duty exemption facility for the import of Goods and Materials as intended in paragraph (1) shall be complete with:
6. Between paragraph (1) and paragraph (2) of Article 9 is inserted 1 (one) paragraph, called paragraph (1a), and paragraph (4) and paragraph (5) of Article 9 is amended, between paragraph (4) and paragraph (5) of Article 9 is inserted 1 (one) paragraph, called paragraph (4a), and paragraph (5) of Article 9 is demolished, so Article 9 is as follows:
"Article 9
(1) Upon the application as intended in Article 7 and Article 8, Head of Investment Coordinating Board on behalf of the Minister gives approval or rejection.
(1a) The approval or rejection as intended in paragraph (1), is given at the latest 7 (seven) working days since received of the complete application.
(2) In case of the application is approved, the Head of Investment Coordinating Board on behalf of the Minister issues a decision for exemption of import duty and attachments in the form of a list of at least contain the number, types, specifications, and estimates the price of Machinery and/or Goods and Materials granted exemption in details per port of entry place.
(3) In case of the application is rejected, Head of Investment Coordinating Board on behalf of the Minister makes letter of rejection application with stating the reason of rejection.
(4) A copy of the decision of import duty exemption and its attachment as intended in paragraph (2), among others, addressed to the Director General of Customs and Excise and the Head of Customs Office of entry place of goods.
(4a) Head of Investment Coordinating Board shall submit a copy of the decision of import duty exemption and its attachment as intended in paragraph (4) to the Director General of Customs and Excise and the Head of Customs Office of entry place of goods within a period of 7 (seven) days since decision for import duty exemption is issued.
(5) nullified."
7. Between Article 9 and Article 10 is inserted 1 (one) Article, called Article 9A, which is read as follows:
"Article 9A
Issuance of decision for exemption of import duty by the Head of Investment Coordinating Board on behalf of the Minister as intended in Article 9 paragraph (2), conducted by the delegation of authority as provided for in Presidential Regulation No. 27/2009 concerning Integrated One Stop Services in Investment."
8. The provisions of Article 13 is amended as follows:
"Article 13
(1) The Company is granted exempted from import duty shall submit a report of the realization of the import to the Head of Investment Coordinating Board no later than 7 (seven) working days after realization of the import.
(2) In case of the Company does not comply with the provisions on the submission of report on the realization of import as intended in paragraph (1), the Company may be subject to the provisions of administrative sanctions that is regulated by the Head of Investment Coordinating Board."
9. The provisions of Article 14 is amended as follows:
"Article 14
(1) Machinery as intended in Article 3 and Article 4, can be transferred after be used for a minimum period of 2 (two) years from the date of import customs notification.
(2) The period of the Transfer as intended in paragraph (1) does not apply in the case of:
a. Emergencies condition (force majeure);
b. Machinery is re-exported, or
c. Machinery is transferred to the Company that has exemption of import duty facility for Building of Development of industry in the framework of Investment.
(3) The transfer of machinery as intended in paragraph (1) and paragraph (2) done after obtaining permission from the Director General of Customs and Excise on behalf of the Minister.
(4) The transfer as intended in paragraph (1) is performed within a period of minimum 2 (two) years and a maximum 5 (five) years, resulting cancellation of import duty exemption facility provided and the Company shall pay the import duty payable.
(5) Exempted to pay import duty payable as intended in paragraph (4) in terms of:
a. Transfer of Machinery is after a period of 5 (five) years from the date of import customs notification; or
b. Transfer of Machinery is made according to the provisions as intended in paragraph (2).
(6) In the case of transfer of machinery do not match the provisions as intended in paragraph (3), the Company shall pay:
a. import duty payable on imported machinery, and
b. administrative sanctions such as fines in accordance with provision of regulation in the field of customs.
(7) The provisions on import duty exemption to pay import duty obligation as intended in paragraph (4) does not apply to the machinery in case of Emergency Condition (force majeure), but the machinery still has economic value.
(8) Payment of import duty as intended in paragraph (7) based on the delivered price with the tariff:
a. if the import duty tariff is 5% (five percent) or more subject to tariff of 5% (five percent); or
b. if the import duty tariff is less than 5% (five percent) subject to tariff according to the type of goods."
10. Between Article 14 and Article 15 inserted 3 (three) articles, called Article 14A, Article 14B and Article 14C which are read as follows:
"Article 14A
(1) Goods and Materials as intended in Article 3 and Article 4, cannot be transferred except in case of an Emergency Condition (force majeure).
(2) Goods and Materials as intended in Article 3 and Article 4 can be re-exported or destroyed.
(3) The transfer of goods and materials as intended in paragraph (1) and the implementation of re-export or destroying as intended in paragraph (2) be done after obtaining permission from the Director General of Customs and Excise on behalf of the Minister.
(4) On the transfer of goods and materials and re-exporting or destroying of goods and materials as intended in paragraph (3), exempted from the obligation to pay import duty payable on imported Goods and Materials.
(5) Exemption from the obligation to pay import duty as intended in paragraph (4) shall not apply to goods and materials in case of an Emergency Condition (force majeure) or destroying, but the Goods and Materials get Emergency Conditions (force majeure) or after destroying still have economic value.
(6) Payment of customs duty for goods and materials in damaged condition in the case of an Emergency Condition (force majeure) or after the destroying as intended in paragraph (5) is based on the delivered price with following tariff rate:
(7) In case of Company abusing the provisions as intended in paragraph (3), the Company shall pay the import duty payable subject to administrative sanctions and fines in accordance with regulations in the field of customs.
Article 14B
(1) Supervision of Machinery and/or Goods and Materials that get the import duty exemption facility include:
(2) Supervision as intended in paragraph (1) performed with the following provisions:
(3) Supervision conducted by the Investment Coordinating Board as intended in paragraph (2) a does not eliminate the authority of the Director General of Customs and Excise in conducting surveillance of import duty exemption facility through the audit based on risk management.
(4) Head of Investment Coordinating Board and the Director General of Customs and Excise may make monitoring procedures as intended in paragraph (1) either individually or together.
Article 14C
The Regulation of Director General of Customs and Excise shall further regulate the procedure of transfer of Machinery and/or Goods and Materials."
11. Provisions of paragraphs (1), (3), and (4) of Article 15 are amended, and between paragraph (3) and paragraph (4) of Article 15 is inserted 1 (one) paragraph, called Paragraph (3a), so Article 15 is read as follows:
"Article 15
(1) Head of Investment Coordinating Board submit a written report as follows:
(2) The report as intended in paragraph (1) shall be submitted every six (6) months, for the first semester in July of the current year and for the second semester in January of the ensuing year.
(3) The report as intended in paragraph (1) a, is a list of granting import duty exemption in the semester period at least contain the following data elements:
(3a) The report as intended in paragraph (1) b, at least contain the number, types, specifications, and prices of Machinery and/or Goods and Material that are granted import duty exemption in detail by the port of entry.
(4) Implementation of this Ministerial Regulation will be evaluated periodically by consider the report as intended in paragraph (1)."
12. Between Article 17 and Article 18 is inserted 1 (one) Article, called Article 17A which is read as follows:
"Article 17A
Transfer of the Machine and/or Goods and Materials that have granted the import duty exemption facility in the framework of Investment prior to the enactment of this Ministerial Regulation, will be processed based on the provisions as set forth in this Ministerial Regulation."
1. With the enforcement of this Regulation of the Minister of Finance, companies that have import duty exemption for the import of Goods and Materials as intended in Article 5 paragraph (1) already expired, and Companies already filed application for the extension before this Ministerial Regulation comes into force, can obtain extension of import period as intended in Article 5A as the amount of the rest of import allocation is not realized, after issuance of approval for period extension.
2. This Ministerial Regulation shall come into force 30 (thirty) days after the date of promulgation.
For public cognizance, this Ministerial Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on May 21, 2012
MINISTER OF FINANCE,
signed.
AGUS D.W. MARTOWARDOJO