REGULATION OF THE MINISTER OF FINANCE
No. 111/PMK.010/2006

CONCERNING
AMENDMENT OF DECREE OF THE MINISTER OF FINANCE No. 580/KMK.04/2003 CONCERNING PROCEDURES AND SUPERVISION OF IMPORTATION GOODS FACILITATION FOR EXPORT PURPOSE

MINISTER OF FINANCE,

Considering :

• a. Whereas to increase export of non-oil and gas then it is considered necessary in optimalize the giving of export facilitation to the exporters.
• b. Whereas based on consideration as referred to in point a, then it is necessary to specify Regulation of Minister of Finance about Amendment of Decree of minister of finance No. 580/KMK.04/2003 regarding Procedures and supervision of importation goods facilitation for export purpose.

In view of :

• 1. Presidential Decree No. 20/P/2005;
• 2. Decree of The Minister of Finance No. 580/KMK.04/2003 regarding Procedures and Supervision of Importation Goods Facilitation for Export Purpose.

DECIDES :

To stipulate :

REGULATION OF MINISTER OF FINANCE CONCERNING AMENDMENT OF DECREE OF MINISTER OF FINANCE No. 580/KMK.04/2003 CONCERNING PROCEDURES AND SUPERVISION OF IMPORTATION GOODS FOR EXPORT PURPOSE.

Article 1

Provisions of article 13 paragraph (1) point a in Decree of Minister of Finance Number 580/KMK.04/2003 regarding Procedures and Supervision of Importation Goods Facilitation for Export Purpose is Amended, hence it become.

" Article 13

(1) By product, rest of production, damage production result and damage raw material, which its raw material comes from import which sold to Other Customs Area in Indonesia (DPIL) shall be charged :

• a. Import Customs equal to:
• 1. 5% (five %) from selling price, if the tariff of raw material cost at about 5% or more.
• 2. Applied tariff multiple by selling price if the tariff of raw material is less than 5% (five percent).
• b. Excise Cost according to prevailing regulation; and
• c. Pays VAT and Tax on luxury goods which initially is not collected with tax imposition equal to import value.

(2) To goods as referred to in paragraph (1) before sold to DPIL shall be done inspection by functionary.

(3) By product, rest of production, damage production result and damage raw material which ought to be at company, in the case of cannot be justified, shall be charged :

• a. Import Customs and/or Excise Cost, also charged 100% penalty (one hundred %)of Import Customs and/or Excise Cost which ought to be paid, and interest according to rule applied;
• b. VAT and Tax on luxury goods, shall also be charged with sanction according to rule applied."

Article 2

This Decree of the minister shall be put into effect since one (1) month from the date of stipulation.

For everyone to take cognizance thereof, this Regulation of the Minister of Finance shall be promulgated by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On November 24, 2006

THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
(signature)
SRIMULYANI INDRAWATI