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REGULATION OF THE MINISTER OF FINANCE
NUMBER 7/PMK.011/2013

CONCERNING
GOVERNMENT BORNE IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO PRODUCE GOODS AND/OR SERVICES FOR PUBLIC INTEREST AND TO IMPROVE THE COMPETITIVENESS OF CERTAIN INDUSTRIAL SECTORS IN FISCAL YEAR 2013

BY GRACE OF THE ALMIGHTY GOD
THE MINISTER OF FINANCE,

Attachment

Considering:

a. that in the framework to fulfill the supply of goods and/or services for public interests, consumed by public, and/or protect consumers interest, to improve the competitiveness of certain industrial sectors domestically, increase hired of labors, and increase state revenues, it is necessary to provide fiscal incentive in the form of government borne import duty for certain industrial sectors in Fiscal Year 2013;

b. that based on the consideration as intended in paragraph a. and in the framework to exercise provisions of Article 8 paragraph (9) of Law Number 19 of 2012 concerning State Revenue and Expenditure Budget Year 2013, it is necessary to stipulate Regulation of the Minister of Finance concerning Government Borne Import Duty of the Import of Goods and Materials to Produce Goods and/or Service for Public Interest and to Improve Competitiveness of Certain Industrial Sector in Fiscal Year 2013;

In view of:

1. Law Number 17 of 2003 concerning State Finance (Statute Book of the Republic of Indonesia Number 47 of 2003, Supplement of Statute Book of the Republic of Indonesia Number 4286);

2. Law Number 1 of 2004 concerning State Treasury (Statute Book of the Republic of Indonesia Number 5 of 2004, Supplement of Statute Book of the Republic of Indonesia Number 4355);

3. Law Number 19 of 2012 concerning State Revenue and Expenditure Budget Year 2013 (Statute Book of the Republic of Indonesia Number 228 of 2013, Supplement of Statute Book of the Republic of Indonesia Number 5361);

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING GOVERNMENT BORNE IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO PRODUCE GOODS AND/OR SERVICES FOR PUBLIC INTEREST AND TO IMPROVE THE COMPETITIVENESS OF CERTAIN INDUSTRIAL SECTORS IN FISCAL YEAR 2013

Article 1

In this Regulation:

1. Government Borne Import Duty hereinafter called BM DTP is payable import duty paid by the government with the amount of budget ceiling as intended in Article 8 paragraph (8) of Law Number 19 of 2012 concerning State Revenue and Expenditure Budget Year 2013 with its amendment.

2. Certain Industrial Sector is industrial deserving BM DTP in accordance with policy on the development of the national industry.

3. Supervisor of Industrial Sector is minister/head of agency that supervise certain industrial sector.

4. Goods and materials are finished goods, goods in process and/or raw material including spare parts and components that are processed, assembled, or installed to produce goods and/or services.

5. Government Borne Import Duty Subsidy Budget User Proxy hereinafter called KPA BM DTP is official of state ministries/agencies are stipulated by Minister of Finance to manage government borne import duty subsidy budget.

6. Proxy of State General Treasury hereinafter called BUN Proxy is Director General of Treasury/Head of State Treasury Service Office who has authorization to issued Fund Liquefied Instruction (SP2D) on the burden of APBN.

Article 2

(1) BM DTP may be granted to certain industrial sectors based on evaluation criteria:

• a. to meet the supply of goods and/or services for public interest, consumed by the general public, and/or to protect consumers interest;
• b. to improve competitive power;
• c. to increase the absorption of manpower; and
• d. to increase the State revenue.

(2) The determination of the weight of each evaluation criterion as intended in paragraph (1) is as stipulated in the Attachment I that is an integral part of this Ministerial Regulation.

(3) Each evaluation criterion for Certain Industrial Sector as intended in paragraph (1) is given score between 10 (ten) to 100 (one hundred), minimum total score of Certain Industrial Sector to get BM DTP is 50 (fifty).

(4) BM DTP can be given on imported Goods and materials with following provisions:

• a. Goods and Materials are not produced domestically yet;
• b. Goods and Materials are produced domestically, but not yet meeting the required specifications; or
• c. Goods and Material are produced domestically but not yet in an amount meeting the requirements of industries.

(5) BM DTP can not be given to:

• a. Goods and Materials are charged general import duty tariff 0 % (nil percent);
• b. Goods and Materials are charged import duty 0% (nil percent) based on international agreements;
• c. Goods and Materials are charged Antidumping Import Duty/Temporary Antidumping Import Duty, Safety Measure Import Duty/Temporary Safety Measure Import Duty, Compulsory Import Duty, or Counter Strike Import Duty;
• d. Goods and Materials are imported by company in Bonded Piling Site; or
• e. Goods and Materials are imported by company that get exemption/restitution of import duty on the import of Goods and Materials to be processed, manufactured, or installed at other goods for export purpose.

Article 3

(1) Application to get BM DTP is proposed by Supervisor of the Industrial Sector to the Minister of Finance enclosed with:

• a. analysis and reasons of Certain Industrial Sector is necessary to be provided BM DTP, by observing the score criteria as intended in Article 2 paragraph (1), paragraph (2) and paragraph (3);
• b. report on the realization of BM DTP for last 2 (two) years period consisting of report on the implementation of BM DTP and report on the utilization of BM DTP, by using format as listed in Attachment II that is an integral part of this Ministerial Regulation, with the reasons in case that industrial sector does not reach ceiling budget of BM DTP;
• c. list of goods and materials with its technical specifications description, in accordance with the provisions of goods and materials as intended in Article 2 paragraph (4) and paragraph (5); and
• d. proposal on the budget ceiling of BM DTP attached with reference framework (KAK), detail of cost budget (RAB), and Statement of Absolute Responsibility (SPTJM) that can be responsible.

(2) On the application as intended in paragraph (1), Fiscal Policy Board of the Ministry of Finance studies it as recommendation to the Minister of Finance.

(3) In the framework of study as intended in paragraph (2), Fiscal Policy Board of the Ministry of Finance asks input from many state ministries/agencies, Directorate General of Customs and Excise, Directorate General of Budget, and/or Directorate General of Treasury.

(4) In accordance with recommendation of Fiscal Policy Board to Minister of Finance as intended in paragraph (2), Director General of Budget applies principle permit to prepare fund to the Minister of Finance to obtain approval.

(5) In case proposal and budget ceiling as intended in paragraph (1) is approved, the Minister of Finance will issue a regulation of the Minister of Finance concerning import duty borne by Government on the import of goods and materials for certain industrial sector

Article 4

(1) Based on Regulation of the Minister of Finance as intended in Article 3 paragraph (5), KPA BM DTP proposes allocation of budget to the Director General of Budget attached with Budget Implementation List (DIPA).

(2) On the allocation of budget as intended in paragraph (1), Director General of Budget on behalf of Minister of Finance legalizes Budget Implementation List (DIPA) in accordance with Regulation of the Minister of Finance concerning guideline to prepare and legalize budget implementation list.

Article 5

(1) In the framework to get cash payment of BM DTP subsidy, KPA BM DTP issues decision to appoints:

• a. Official of Commitment Maker;
• b. Official of Payment Order Signer, and
• c. Payment Treasury.

(2) Copy of decision as intended in paragraph (1) is submitted to the Head of State Treasury Service Office as the Proxy of BUN in regional.

Article 6

In the framework to issue Decree of the Minister of Finance on the giving of BM DTP, Directorate General of Customs and Excise receive check application of BM DTP and Plan of Importing Goods or Changing Plan of Importing Goods are approved and legalized by Supervisor of Industrial Sector, are applied by the company.

Article 7

(1) Supervisor of Industrial Sector submits Three Month Report of Realization of Government Borne Import Duty to the Minister of Finance with attention to the Head of Fiscal Policy Board and Director General of Budget, by using format as stated in Attachment III that is an integral part of this Ministerial Regulation.

(2) Reports as intended in paragraph (1) are submitted on April, July, October and December, 2013.

(3) Director General of Customs and Excise submits quarter report on the Realization of Government Borne Import Duty to the Minister of Finance with attention to Head of Fiscal Policy Board and Director General of Budget, by using format as listed in Attachment IV that is an integral part of this Ministerial Regulation.

(4) Reports as intended in paragraph (3) are submitted on April, July, October, and December, 2013.

Article 8

This Regulation of the Minister of Finance comes into effect from the date of enactment until December 31, 2013.

For public cognizance, this Ministerial Regulation shall be promulgated in the State Gazette of the Republic Indonesia.

Stipulated in Jakarta
on January 2, 2013
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,
signed.
AGUS D.W. MARTOWARDOJO

STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 10 OF 2013