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REGULATION OF THE MINISTER OF TRADE
No. 12/M-DAG/PER/3/2009

CONCERNING
DELEGATION OF AUTHORITY TO ISSUE PERMITS IN FOREIGN TRADE FIELD TO BATAM FREE TRADE ZONE AND FREE PORT MANAGEMENT BOARD, BINTAN FREE TRADE ZONE AND FREE PORT MANAGEMENT BOARD, AND KARIMUN FREE TRADE ZONE AND FREE PORT MANAGEMENT BOARD

BY THE GRACE OF ALMIGHTY GOD,
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Attachment (pdf)

Considering:

a. that in the framework toward global competition growth and threat, regional autonomy spirit, and to support international trade traffic activities that has influence and benefit for national economics, it is necessary fastener development of Batam Free Trade Zone and Free Port, Bintan Free Trade Zone and Free Port, and Karimun Free Trade Zone and Free Port;

b. that in the framework for fastener development of Batam Free Trade Zone and Free Port, Bintan Free Trade Zone and Free Port, and Karimun Free Trade Zone and Free Port, it is necessary to delegate authority to issues permits in foreign trade field to Batam Free Trade Zone and Free Port Management Board, Bintan Free Trade Zone and Free Port Management Board, and Karimun Free Trade Zone and Free Port Management Board;

c. that based on consideration as intended in paragraphs a and b, it is necessary to stipulate Regulation of the Minister of Trade;

In view of:

1. Trade Law 1934 (Statute Book No. 86/1938);

2. Law No. 8/1962 concerning the Trade of Goods under Surveillance (Statute Book of the Republic of Indonesia No. 42/1962, Supplement to Statute Book of the Republic of Indonesia No. 2469);

3. Law No. 7/1994 concerning the Ratification of Agreement Establishing The World Trade Organization (Statute Book of the Republic of Indonesia No. 57/1994, Supplement to Statute Book of the Republic of Indonesia No. 3564);

4. Law No. 36/2000 concerning the Passage of Government Regulation in lieu of Law No. 1/2000 concerning Free Trade Zone and Free Port into Law (Statute Book of the Republic of Indonesia No. 251/2000, Supplement to Statute Book of the Republic of Indonesia No. 4053) as amended by Law No. 44/2007 concerning the Passage of Government Regulation in lieu of Law (Statute Book of the Republic of Indonesia of the Republic of Indonesia No. 130/2007, Supplement to Statute Book of the Republic of Indonesia No. 4775);

5. Government Regulation No. 1/1982 concerning Implementation of Export, Import and Foreign Exchange Traffic (Statute Book of the Republic of Indonesia No. 1/1982, Supplement to Statute Book of the Republic of Indonesia No. 3210) as amended by Government Regulation No. 24/1985 (Statute Book of the Republic of Indonesia No. 32/1985, Supplement to Statute Book of the Republic of Indonesia No. 3291);

6. Government Regulation No. 38/2007 concerning the Sharing of Government Affairs between the Government, Provincial Governments and Regency/Municipal Governments (Statute Book of the Republic of Indonesia No. 82/2007, Supplement to Statute Book of the Republic of Indonesia No. 4737);

7. Government Regulation No. 46/2007 concerning Batam Free Trade Zone and Free Port (Statute Book of the Republic of Indonesia No. 107/2007, Supplement to Statute Book of the Republic of Indonesia No. 4757);

8. Government Regulation No. 47/2007 concerning Batam Free Trade Zone and Free Port (Statute Book of the Republic of Indonesia No. 108/2007, Supplement to Statute Book of the Republic of Indonesia No. 4757);

9. Government Regulation No. 48/2007 concerning Batam Free Trade Zone and Free Port (Statute Book of the Republic of Indonesia No. 109/2007, Supplement to Statute Book of the Republic of Indonesia No. 4757);

10. Presidential Decree No. 260/1967 concerning Division of Task and Responsibility of Minister of Trade in Foreign Trade Field;

12. Presidential Decree No. 187/M/2004 concerning Establishment of United Indonesia Cabinet as amended by Presidential Decree No. 171/M/2005;

11. Presidential Regulation No. 9/2005 concerning Position, Duties, Function, Organization Structure and Work Flow of State Ministries of the Republic of Indonesia as amended several times, the latest by Presidential Regulation No. 20/2008;

12. Presidential Regulation No. 10/2005 concerning First-echelon Organizational Units and Tasks of State Ministries of the Republic of Indonesia that is amended several times and the latest by Presidential Regulation No. 50/2008;

13. Presidential Decree No. 9/2008 concerning Batam Free Trade Zone and Free Port Council;

14. Presidential Decree No. 10/2008 concerning Bintan Free Trade Zone and Free Port Council;

15. Presidential Decree No. 11/2008 concerning Karimun Free Trade Zone and Free Port Council;

16. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in Import Field;

17.Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning General Provision in Export that is amended several times and the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007;

18. Decree of the Minister of Industry and Trade No. 141/MPP/Kep/3/2002 concerning Special Importer Identity Number (NPIK) as amended the latest by Regulation of the Minister of Trade No. 07/M-DAG/PER/3/2008;

19. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning the Organization and Working Arrangement of the Ministry of Trade as amended several times, the latest by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;

20. Regulation of the Minister of Finance No. 47/PMK.04/2009 concerning Procedure to Enter and Release Goods To and From Zones are apointed as Free Trade Zone and Free Port;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING DELEGATION OF AUTHORITY TO ISSUE PERMITS IN FOREIGN TRADE FIELD TO BATAM FREE TRADE ZONE AND FREE PORT MANAGEMENT BOARD, BINTAN FREE TRADE ZONE AND FREE PORT MANAGEMENT BOARD, AND KARIMUN FREE TRADE ZONE AND FREE PORT MANAGEMENT BOARD

Article 1

In the Ministerial Regulation:

1. Batam Free Trade Zone and Free Port, Bintan Free Trade Zone and Free Port, and Karimun Free Trade Zone and Free Port hereinafter called as KPBPB-BBK, are zones in territory of Republic of Indonesia that is separate from customs area, so it is free from imposition of import duty, value added tax, sales tax on luxury goods, and excise.

2. Batam Zone Council, Bintan Zone Council, and Karimun Zone Council hereinafter called as Zone Council, are Batam Free Trade Zone and Free Port Council, Bintan Free Trade Zone and Free Port Council, and Karimun Free Trade Zone and Free Port Council.

3. Head of Batam Free Trade Zone and Free Port, Bintan Free Trade Zone and Free Port, and Karimun Free Trade Zone and Free Port Council hereinafter called as Head of Zone Council is Head of Batam Free Trade Zone and Free Port Council, Head of Bintan Free Trade Zone and Free Port Council, and Head of Karimun Free Trade Zone and Free Port Council.

4. Batam Zone Management Board, Bintan Zone Management Board, and Karimun Zone Management Board hereinafter call as BP of BBK zone is Batam Free Trade Zone and Free Port Management Board, Bintan Free Trade Zone and Free Port Management Board, and Karimun Free Trade Zone and Free Port Management Board.

5. Head of Batam Zone Management Board, Head of Bintan Zone Management Board, and Head of Karimun Zone Management Board hereinafter called as Head of BP of BBK zone is Head of Batam Free Trade Zone and Free Port Management Board, Head of Bintan Free Trade Zone and Free Port Management Board, and Head of Karimun Free Trade Zone and Free Port Management Board.

6. Minister is Minister who has duties and responsibility in trading field.

Article 2

(1) Minister delegates authority to issue permits in foreign trade field to BP of BBK zone.

(2) Authority as intended in paragraph (1) is stated in Attachment I and Attachment II that are integral part of this Ministerial Regulation.

Article 3

Implementation of issuance of permits as intended in Article 2 by consider national interest and based on regulation in the foreign trade field.

Article 4

Head of BP of BBK zone has responsibility on the implementation of authority to issues permits as intended in Article 2.

Article 5

Authority as intended in Article 2 can be cancelled by Minister for a part or all of it, in case of:

a. BP of BBK zone proposes to cancelled a part or all of authority;

b. BP of BBK zone is pretended not capable to implement authority that is delegated;

c. Zone council proposed to cancel a part of all of authority; and/or

d. BP of BBK zone can not implement authority because the amendment of the Ministerial policy.

Article 6

(1) Every activity of import and/or export of goods to and from KPBPB-BBK as stated in Attachment I and Attachment II of this Ministerial Regulation should be conducted by company that already got permit to import and/or export from BP of BBK Zone.

(2) Company as intended in paragraph (1) only can do activity of import and/or export of goods to and from KPBPB-BBK that is related with its business activities.

(3) Company as intended in paragraph (1) in doing import of certain goods as intended in Attachment III of this Ministerial Regulation does not have to owned Special Importer Identity Number (NPIK).

Article 7

Minister with Head of Zone Council conduct management and control on the implementation of authority as intended in Article 2 by BP of BBK Zone.

Article 8

(1) BP of BBK Zone in periodically submit written responsibility report on the issuance of permit as intended in Article 2 to the Minister, with copy to Head of Zone Council.

(2) Report as intended in paragraph (1) is submitted every 3 (three) months, at the latest on 15 of the ensuing month.

Article 9

Import and/or export permit that is issued to the company with domicile in KPBPB-BBK before this Ministerial Regulation is effective, still valid until its expired period.

Article 10

Implementation direction and technical matters will be stipulated further by Head of Zone Council after coordinate with Director General of Foreign Trade.

Article 11

In the framework of effective implementation of issuance permit in Foreign Trade field by BP of BBK zone, Head of Zone Council can establish Team, with members from Zone Council and Ministry of Trade.

Article 12

This Ministerial Regulation shall come into force on April 1, 2009.

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

Stipulated in Jakarta
on March 27, 2009
MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
signed,
MARI ELKA PANGESTU