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REGULATION OF THE MINISTER OF DEFENSE
No. PER/22/M/XII/2006

CONCERNING
THE MANUAL FOR CONTROLLING, MAINTAINING AND IMPROVING THE COMMERCIAL EXPLOSIVE MATERIALS BUSINESS ENTITIES

MINISTER OF DEFENSE,

Considering:

a. that the Decree of the Minister of Defense No. KEP/10/M/VII/2000 dated July 7, 2000 concerning Guidelines for Maintaining and Control of Commercial Explosive Materials Business Entity as the implementation of Presidential Decree No. 125/1999 concerning Explosive Materials, is no longer appropriate to the development of the Ministry of Defense as governed by Regulation of the Minister of Defense No. PER/01/M/VIII/2005 dated August 25, 2005 concerning the Organizational Structure and Working Procedures of the Ministry of Defense, so it is necessary to be improved;

b. that based on the consideration as intended in paragraph a, it is necessary to stipulate Regulation of the Minister of Defense concerning the Manual for Controlling, Maintaining and Improving the Commercial Explosive Materials Business Entities;

In view of:

1. Law No. 3/2002 concerning State Defense (Statute Book of the Republic of Indonesia No. 3/2002, Supplement to Statute Book of the Republic of Indonesia No. 4169);

2. Government Regulation No. 17/1986 concerning Authority for Regulating, Maintaining, and Development of Industry (Statute Book of the Republic of Indonesia No. 23/1986, Supplement to Statute Book of the Republic of Indonesia No. 3330);

3. Presidential Decree No. 125/1999 on Explosive Materials

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF DEFENCE CONCERNING THE MANUAL FOR CONTROLLING, MAINTAINING AND IMPROVING THE COMMERCIAL EXPLOSIVE MATERIALS BUSINESS ENTITIES

CHAPTER I
GENERAL PROVISIONS

Part One
Understanding

Article 1

In this Ministerial Regulation:

1. Explosive Materials are materials or substances in the form of solid, liquid, gas, or mixture when subjected to an action in the form of heat, impact or friction will change chemically into other substances that mostly or entirely gaseous and such changes take place in a short time, accompanied by very high heat and pressure effects.

2. Commercial Explosive Materials are variety of chemical products that can be used as raw materials for the benefit of the mines work, public works or used in the production process of certain industrial and commercial characteristics.

3. Commercial Explosive Materials Business Entities are legal entity in the form of Liability Company (PT. Persero), Limited Company (PT), and Cooperation,

4. Explosive Chemical Substances Importers are companies which got recommendation from Ministry of Defense for the import of explosive chemical materials that are used for industrial production processes are not in explosive materials industry.

5. Commercial explosive materials accessories are all kinds of explosive materials auxiliary such as boosters, detonators, fire axes, the axis of explosive, detonators relay, igniter, igniter cords, connectors, and so on.

6. Explosive materials warehouse is a building or container that is technically capable of storing explosive materials safely,

7. Production is the process of processing to convert raw materials into ready for use explosive materials that the process is performed at the factory and in the field.

8. Procurement is an activity to supply explosive materials and accessories by import from abroad or from domestic procurement.

9. Warehousing services is the business of providing one or several warehouses that have met the technical requirements of a particular security and safety to store explosive materials and explosive materials accessories, either for itself or leased to third parties.

10. Blasting services are activities to blow up a certain object either for mining or public works job, which starts blasting activities of gathering explosive materials, creating a primary, fill and clog the holes, assemble and connect the blast pattern, set the danger area, dealing with failure blasting, blasting control the adverse effect.

11. Transportation services is an effort to transport explosive materials from one place to another according to the manufacturer or end user request by using special vehicles that have received permission from the Police,

12. Relevant agencies are agencies associated with the management of commercial explosives, including the Ministry of Trade, Ministry of Industry, Ministry of Finance, Ministry of Energy and Mineral Resources, State Ministry of Environment, Investment Coordinating Board, Police Baintelkam, Bais of TNI.

13. Permission is an approval given by the competent official or appointed official in accordance with applicable legislation for the grant in whole or in part the application filed by another party.

14. Recommendations are written suggestions that approve or give permit, made by the competent official, used as consideration for other officials in taking decisions.

15. The validity period of permits is the grace period given by the giver permission to the applicant for permit and calculated from the signed of permit to certain specified time.

16. Minister is the Minister who has responsibility in Defense field.

Part Two
Purpose, Objectives and Scope

Article 2

(1) This Minister Regulation purpose is to provide direction and guidance for all parties concerned with the controlling, maintaining and improving of commercial explosives business entities.

(2) This Ministerial Regulation is intended to achieve an understanding and action in the management of commercial explosive materials from production start up until destruction.

(3) The scope of this Ministerial Regulation includes the grouping of explosive materials, commercial explosive materials business entities, procedures, controlling, maintaining, coordination and level of authority, validity period, the budget.

Part Three
Minister Policy

Article 3

Policy of the Minister is defined as follows:

CHAPTER II
GROUPING OF EXPLOSIVE MATERIALS

Part One
Grouping Based on Composition of Chemical Compounds

Article 4

(1) Grouping of explosive materials based on the composition of chemical compounds is distinguished in a single compound explosive materials and explosive materials mixture.

(2) Single compound explosive materials as intended in paragraph (1) are grouped based on:

(3) Explosive materials mixture as intended in paragraph (1) are grouped become high explosive materials and low explosive materials;

(4) High explosive materials as intended in paragraph (3) are mostly used by military and civil (commercial) for the purpose of crushing, splitting, cutting, geological purposes, including: Amatol, Ammonia, Ammonium Nitrate Fuel Oil (ANFO) , Sikotol, Dynamite, Oktol, Pentolit, Pikratol, Torpeks, Tritonal, Plastic bomb;

(5) Low explosive materials as intended in paragraph (3) are not an explosive destroyer, but is used as stuffing material drivers of the ammunition, known by the name propellant, includes: black powder, smokeless powder, rocket propellant, liquid propellant.

Part Two
Grouping Based on Usefulness.

Article 5

(1) Classification of explosive materials based on their usefulness in blasting explosive materials and/or bursting.

(2) Blasting explosive materials as intended in paragraph (1) are the explosive materials used for mining, construction and the like,

(3) Bursting explosive materials as intended in paragraph (1) are the explosives used in weapons systems, such as born, grenades, explosive heads, and the like.

(4) Blasting and/or bursting explosive materials consists of:

(5) Cartridge explosive materials are kinds of blasting or bursting materials are used to make projectile metal with that enabled translucent/cut.

(6) Propellant explosive materials as intended in Article 4 paragraph (5) are the explosive used in the driving gas forming in bullet gun or rocket motor.

(7) Fuse explosive materials are explosive materials that are used as the beginning of a series of blasting process, either ignition/deflagration or in detonation.

(8) Pyrotechnic explosive materials are explosive materials that are used as forming of heat, gas, color, and the like.

Part Three
Grouping Based on Raw Materials.

Article 6

Grouping of explosive materials based on raw materials include:

Blasting Gelatine (Master Mix), Nitro Glycerine (NG), Nitro Glycol (DEGN), Nitro Cellulose (NC) with N-content of more than 12.6%, PETN, Black Powder, Emulsion Base, Mercury Fulminate, Lead azide, DDNP, Lead styphnate, Tetracene and the like.

Part Four
Grouping Based on the Environmental Users

Article 7

(1) Grouping of explosive materials based on the user environment consists of military and commercial explosive materials.

(2) military explosive materials as intended in paragraph (1) include:

(3) Commercial explosive materials as intended in paragraph (1) include:

CHAPTER III
COMMERCIAL EXPLOSIVE MATERIALS BUSINESS ENTITIES

Part One
Requirements to Obtain Permits:

Article 8

Requirements to obtain a business license:

Part Two
Requirements of Appointment as Registered Importer of Explosive Materials

Article 9

(1) Business entity incorporated in the form of Limited Liability Company (PT. Persero), Limited Company (PT), and cooperation;

(2) Attach a Trading Business License (SIUP), Company Registration (TDP) and the Importer’s Identity Number (API) issued by the Ministry/Agency of Trade;

(3) Attach a Taxpayer Identification Number (NPWP) and proof of settlement of tax obligation.

(4) Attach proof of ownership or possession of the warehouse that meets the technical requirements as a warehouse for storing commercial explosive materials.

CHAPTER IV
PROCEDURE TO PROCESS PERMIT AND RECOMMENDATION

Part One
Permission as Commercial Explosive Materials Business Entity

Article 10

(1) Any Business Entity may apply for a commercial explosive materials business entity to the Minister, by attaching the requirements as intended in Article 8.

(2) The application as intended in paragraph (1), studied, checked and reviewed an Interdep team meetings for supervision of commercial explosive materials, then the result is set forth in the Minutes of the Meeting,

(3) Interdep team for supervision of commercial explosive materials, will check on the field of the necessary requirements, the result is set forth in the Minutes.

(4) Based on the minutes as intended in paragraph (2) and (3), Interdep team for supervision of commercial explosive materials make and submit recommendations to the Minister to approve or reject the application as intended in paragraph (1),

(5) The Minister will issue a Ministerial Decree concerning permit as Commercial Explosive Materials Business Entity, if the recommendation submitted by the Interdep team as intended in paragraph (4) states that application can be approved.

(6) The Minister will notify the rejection, if the recommendation submitted by the Interdep team as intended in paragraph (4) states that application can not be approved.

Article 11

(1) The provisions as intended in Article 10, apply to the Commercial Explosive Materials Business Entities that will apply for renewal license as a commercial explosive materials business entity.

(2) Application for renewal license as a commercial explosives business entity submitted to the Minister, at least 2 (two) months before the expire date of appointment.

Part Two
Determination quota for Commercial Explosive Materials and Accessories

Article 12

(1) Commercial explosive materials business entity file application for quota of commercial explosive materials and accessories required for the next year, by attaching distribution plan.

(2) Application for quota as intended in paragraph (1), has content on the kind and quantity of commercial explosive materials and accessories that submitted to the Minister at the latest on November of the year.

(3) Based on the application as intended in paragraph (1), the Minister set a quota of the number and kind of explosive materials and accessories.

(4) If the quota as intended in paragraph (3), it requires additional, it is allowed to apply for additional quota, stating the amount and kind of the requested additional quota, equipped with the reason.

(5) Request for additional quota as intended in paragraph (4) is submitted to the Minister with attention to the Director General of Ranahan, Ministry of Defense.

Part Three
Recommended as a Registered Importer of Commercial Explosive Materials

Article 13

(1) The business entity of commercial explosive materials file application for recommendations as a registered importer of commercial explosive materials to the Minister with attention to the Director General of Ranahan, Ministry of Defense, by attaching the requirements as intended in Article 9.

(2) The application as intended in paragraph (1), will be studied, checked, and analyzed in Interdep team meetings for supervision of explosive materials, then the result is set forth in the Minutes of the meeting.

(3) Interdep team for supervision of commercial explosive materials will check in the field of requirements that require checking in the field and the result is set forth in the Minutes.

(4) Based on the results of the meeting and checking in the field, the interdep team for supervision of commercial explosive materials will make and submit suggestions to the Director General of Ranahan on behalf of the Minister, to approve or reject the application as intended in paragraph (1).

(5) Director General of Ranahan, Ministry of Defense on behalf of the Minister will issue a recommendation as a registered importer of commercial explosive materials, in case the suggestion that is applied by interdep team as intended in paragraph (4) states that application can be approved.

(6) Director General of Ranahan, Ministry of Defense on behalf of the Minister will notify rejection, in case the suggestion that is applied by interdep team as intended in paragraph (4) states that application can not be approved.

Part Four
Recommendation to Import Fire Extinguisher Tube by Using Explosive Materials as a System of Shutdown Process

Article 14

(1) The commercial explosive materials business entity apply for recommendation to import fire extinguisher that use explosive materials in the shutdown process by using commercial explosive materials to the Director General of Ranahan, Ministry of Defense.

(2) Based on the application as intended in paragraph (1), Director General of Ranahan, Ministry of Defense issued a recommendation.

CHAPTER V
MAINTAINING COMMERCIAL EXPLOSIVE MATERIALS BUSINESS ENTITIES

Part One
Obligation

Article 15

In the framework of maintaining, commercial explosive materials business entities shall:

Article 16

(1) Statements made by the Commercial Explosive Materials Business Entities as intended in Article 15, including the realization of production, procurement, storage, and distribution of explosive materials and components.

(2) Commercial Explosive Materials Business Entity is due to negligence or deliberately did not implement the obligation as intended in Article 15, declared in violation and will be subject to administrative sanctions.

(3) Beside the violation as provided for in Article 16, administrative sanctions can be imposed to the Commercial Explosive Materials Business Entity who commit violations include:

Part Two
Sanctions

Article 17

(1) The administrative sanctions as intended in Article 16 paragraph (2) initiated from first written warning, second written warning to revocation of license.

(2) The first written warning as intended in paragraph (1) is given to the Commercial Explosive Materials Business Entity that is known since the violation.

(3) Second written warning as intended in paragraph (1) is given to the Commercial Explosive Materials Business Entity after a grace period of 3 (three) months, the first written warning is not heeded.

(4) Revocation of permit as intended in paragraph (1) subject to the Commercial Explosive Materials Business Entities after a grace period of 3 (three) months, the second written warning is not heeded.

(5) Revocation of permit as intended in paragraph (4) is the final step when Commercial Explosive Materials Business Entity really is not able to be maintained.

(6) Minister determines revocation of commercial explosive materials business permit after receiving input from the interdep team for supervision of explosives through existing hierarchy.

CHAPTER V
DEVELOPMENT OF COMMERCIAL EXPLOSIVE MATERIALS BUSINESS ENTITIES ACTIVITIES

Part One
Cooperation

Article 18

(1) The commercial explosive materials business entities are allowed to conduct cooperation with other domestic or abroad company.

(2) In the Cooperation as intended in paragraph (1) can be either Joint Venture or Joint Operation.

(3) To implement the cooperation as intended in paragraph (1), it is allowed to set up a new business entity.

(4) The new business entity as intended in paragraph (3) is required to apply for a permit as a commercial explosive materials business entity to the Minister.

(5) Permit as a commercial explosive materials business entity to a new business entity as intended in paragraph (4) can be done by revoked and or continue to permits to existing commercial explosive materials business entity.

Part Two
Development of Activities

Article 19

(1) The development of activities/business as intended in Article 18 paragraph (1) may be in development of commercial explosive raw materials industry, commercial explosive materials accessories or increase production capacity.

(2) In the framework to develop business activities as intended in paragraph (1), required to comply with the provisions in force at the relevant agencies.

CHAPTER VII
COORDINATION AND AUTHORITY LEVEL

Part One
Coordination

Article 20

(1) For the purposes of supervision, interdep team is formed for supervision of commercial explosive materials in charge of coordination between related agencies.

(2) The interdep team leader for supervision of commercial explosive materials as intended in paragraph (1), held by Dirtekind of Directorate General of Ranahan, Ministry of Defense, with member from related agencies.

(3) Interdep team for supervision of commercial explosive materials shall provide advice to the Minister in according to hierarchy of the activities as intended in Article 10 and Article 14, as well as other issues related to explosive materisls.

(4) Interdep team for supervision of commercial explosive materials conducts meeting periodically once in 6 (six) months and if necessary can be done outside the meeting schedule has been determined.

(5) In the framework to control explosive materials, interdep team for supervision of commercial explosive materials can checks directly to the field that carried out in coordinated, integrated and planned.

Part Two
Authority level

Article 21

(1) The level of authority of the Ministry of Defense:

(2) The authority as intended in paragraph (1) a, is done through the issuance of Decree of the Minister and any other official letter.

(3) The level of authority of the TNI Headquarters (implemented by Bais TNI):

(4) The level of authority of the Police Headquarters (performed by Baintelkam Police):

(5) The level of authority of the Ministry of Trade:

(6) The level of authority of the Ministry of Industry:

(7) The level of authority of the Ministry of Energy and Mineral Resources:

(8) The level of authority of the Ministry of Finance:

(9) The level of authority of the Investment Coordinating Board:

CHAPTER VIII
PERMIT AND RECOMMENDATION VALIDITY PERIOD

Part One
Permit Validity Period

Article 22

(1) Permit as a business entity for the production of commercial explosive materials in a factory valid for a period of 10 (ten) years.

(2) Permit as a business entity for the production of commercial explosive materials in the field, procurement, distribution, warehousing and blasting services valid for a period of 2 (two) years.

(3) license as a business entity for explosive materials as intended in paragraph (1) and (2) will be evaluated every 6 (six) months.

(4) Permit for quotas for explosive materials and accessories valid for a period of 1 (one) year.

Part Two
Recommendation Validity Period

Article 23

(1) Recommendation for additional quota of commercial explosive materials and accessories valid for a period of 6 (six) months.

(2) Recommendation as a Registered Importer (IT) of commercial explosive material valid for a period of 1 (one) year.

(3) Recommendation for the procurement and distribution of special fire extinguisher in which there are explosive materials, valid for 1 (one) time of procurement and distribution.

CHAPTER IX
FINANCING

Article 24

(1) For the purposes of the implementation of the regulation, promotion and development of commercial explosive materials business entity, required financing.

(2) Financing as intended in paragraph (1) charged to the budget of the Ministry of Defense.

CHAPTER X
TRANSITIONAL PROVISION

Article 25

(1) At the time of enactment of this regulation, Commercial Explosive Materials Business Entities that have obtained permits under Decree of the Minister shall remain valid until the end of appointment/permission is given.

(2) In case the permits as a Commercial Explosive Materials Business Entity as intended in paragraph (1) has expired, then the Commercial Explosive Materials Business Entity shall file an extension, apply this Ministerial Regulation,

CHAPTER XI
CLOSING PROVISION

Article 26

Implementation of the technical provisions necessary to implement this Ministerial Regulation, shall be further by their respective officials in related agencies either jointly or individually according to main tasks and functions.

Article 27

At the time this Ministerial Regulation comes into force, Decree if the Minister of Defense No. Kep/10/M/VII/2000 dated July 7, 2000 concerning Guidelines for Maintaining and Control of Commercial Explosive Materials Business Entity shall be revoked and declared null and void.

Article 28

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

Stipulated in Jakarta
on December 19, 2006
MINISTER OF DEFENSE
signed,
JUWONO SUDARSONO