REGULATION OF THE MINISTER OF FINANCE
No. 97/PMK.010/2006

CONCERNING
EXEMPTION FROM IMPORT GOODS FOR ACTIVITY UPSTREAM PETROLEUM AND GAS

THE MINISTER OF FINANCE,

Considering:

• a. that in order to boost investments in the petroleum and natural gas sector, it is deemed necessary to exempt from import duty on the import of goods used in usptream petroleum and natural gas businesses;
• b. that based on the considerations as meant in letter a, it is necessary to stipulate a regulation of the Minister of Finance on the Exemption from Import Duty on the Import of Goods for The Need of Upstream Petroleum and Natural Gas Businesses;

In view of:

• 1. Law No. 10/1995 on Customs Affairs;
• 2. Law No. 22/2001 on Petroleum and Natural Gas;
• 3. Presidential Decree No. 20/P/2005;
• 4. Decree of the Minister of Finance No. 547/KMK.01/2003 on Stipulation of Tariffs of Import Duty on Imported Goods;

DECIDES :

To stipulate:

THE REGULATION OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS FOR THE NEED OF UPSTREAM PETROLEUM AND NATURAL GAS BUSINESS ACTIVITIES

Article 1

The import of goods used for usptream petroleum and natural gas business activities as stipulated in the attachment to this regulation is exempt from import duty so that the final. tariff of import duty becomes 0% (nil percent).

Article 2

The exemption from import duty as meant in Article 1 is granted to business entities or permanent establishments signing cooperation contracts with the Executive Board of Petroleum and Natural Gas Business Activities and PT Pertamina (Persero).

Article 3

(1) Application for the exemption from import duty as meant in Article 1 is submitted to the Director General of Customs and Excise with a copy made available to the Director General of Petroleum and Natural Gas, Ministry of Energy and Mineral Resources.

(2) The application as meant in paragraph (1) is accompanied by import Plan of Goods (RIB) to which the facility of exemption from import duty is requested for a period of 12 (twelve) months at the maximum.

Article 4

The Director General of Customs and Excise on behalf of the Minister of Finance issues a decree of the Minister of Finance on the granting of the exemption from import duty as meant in Article 1 by referring to the List of Goods as well as specifications as stipulated in the attachment to this regulation.

Article 5

The Director General of Customs and Excise is instructed to implement the provisions in this regulation.

Article 6

The regulation comes into force as from the date of stipulation to July 15,2007 and is retroactive to July 16,2006.

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

Stipulated in Jakarta
On October 16,2006

THE MINISTER OF FINANCE
(signature)
SRI MULYANI INDRAWATI

ATTACHMENT TO REGULATION OF THE MINISTER OF FINANCE
No. 97/PMK.010/2006

LIST OF GOODS FOR THE NEED OF UPSTREAM PETROLEUM AND NATURAL GAS BUSINESS ACTIVITIES