THE REGULATION OF THE MINISTER OF FINANCE
No. 70/PMK.04/2006

CONCERNING
THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF CAPITAL GOODS IN THE FRAMEWORK OF PROVISION OF ELECTRICITY BY PRIVATE

THE MINISTER OF FINANCE,

Considering:

• a. that in the framework of supporting the growth of the private power plant business and guaranteeing the supply of electricity to communities, it is necessary to give facility of exemption from import duty on the import of capital goods in the framework of provision of electricity by private;
• b. that based on the provision in Article 26 paragraph (2) of law No. 10/1995 on Customs Affair, the change in imported goods eligible to exemption or relief of import duty on the basis of the objectives of finance the use is regulated by the Minister of Finance;
• c. that based on the considerations as meant letters a and b, it is necessary to stipulate a regulation of the Minister of Finance on the exemption from import duty On the import of capital goods in the framework of provision of electricity by private;

In view of :

• 1. Law No. 10/1995 on Customs Affair;
• 2. Presidential Decree No. 20/P/2005;

DECIDES:

To Stipulate:

THE REGULATION OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM IMPORT IN THE FRAMEWORK OF PROVISION OF ELECTRICITY BY PRIVATE

Article 1

Referred to in this regulation as :

• 1. Provision of Electricity by Private means all business related to provision of electricity by private business entities as holders of electricity business license for public interest.
• 2. Capital Goods are machines, equipment and factory equipment in installed or broken down condition, excluding spare parts used directly in provision of electricity business entities for public interests.

Article 2

The import of the capital goods as meant in paragraph (1) is given facility of exemption from import duty.

Article 3

The facility of exemption from import duty as meant in Article 2 is granted by the Minister of Finance.

Article 4

(1) In order to obtain the exemption from import don the import of capital goods as meant in Article 2, the relevant submits application to the Minister of Finance through the Director General of Customs and Excise with the provision that the company must have Power Purchase Agreement (PPA) with PT PLN (Persero) with the electricity production purchased wholly by PT PLN (Persero).

(2) On the request meant to the article (1), Director General of Customs and Excise send the proposed liberation of appointed Import Duty to the Minister of Finance.

Article 5

The technical provisions that are needed in implementation of the regulation of the Minister of Finance are arranged further by Director General of Customs and Excise.

Article 6

The regulation of the Minister of Finance shall come into force on the appointed date.

For public cognizance, the regulation of the Minister of Finance shall be published by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On August 29, 2006

THE MINISTER OF FINANCE
(signature)
SRI MULYANI INDRAWATI