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DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No. 68/MPP/Kep/2/2003

CONCERNING
INTER-INSULAR TIMBER TRADE

THE MINISTER OF INDUSTRY AND TRADE,

Considering :

that in the framework of ensuring the effective implementation of Joint Decree of the Minister of Communications, Minister of Forestry and Minister of Industry and Trade No. KM 3/2003, No. 22/KPTS-II/2003 and No. 33/MPP/Kep/1/2003 on supervision over timber transport through seaports, it is deemed necessary to issue a decree of the Minister of Industry and Trade;

In view of :

• 1. Trade Ordinance of 1934 (Statute Book of 1938 No. 86);
• 2. Law No. 7.Drt.1955 on probe and prosecution of economic crimes (Statute Book of 1955 No. 27, Supplement to Statute Book No. 801) as already amended, the latest by Law No. 17/1964 (Statute Book of 1964 No. 101, Supplement to Statute Book No. 2695);
• 3. Law No. 8/Prp/1962 on trade of goods under supervision (Statute Book of 1962 No. 42, Supplement to Statute Book No. 2469);
• 4. Law No. 21/1992 on shipping (Statute Book of 1992 No. 98, Supplement to Statute Book No. 3493);
• 5. Law No. 22/1999 on regional administration (Statute Book of 1999'No. 60, Supplement to Statute Book No. 3839);
• 6. Law No. 41/1949 on forestry (Statute Book of 1999 No. 167, Supplement to Statute Book No. 3888);
• 7. Government Regulation No. 11/1962 on trade of goods under supervision (Statute Book of 1962 No. 46, Supplement to Statute Book No. 2473);
• 8. Government Regulation No. 25/2000 on the authority of the government and the authority of provinces as autonomous regions (Statute Book of 2000 No. 54, Supplement to Statute Book No. 3952);
• 9. Presidential Decree No. 228/M/2001 on the establishment of the mutual cooperation cabinet;
• 10. Presidential Decree No. 102/2001 on the status, tasks, functions, authority, organizational structures and working arrangements of ministries;
• 11. Presidential Decree No. 109/2001 on first-echelon organizational units and tasks of ministries;
• 12. Decree of the Minister of Industry and Trade No. 86/MPP/Kep/3/2001 on organizational structures and working arrangements of ministries;
• 13. Joint Decree of the Minister of Industry and Trade and Minister of Forestry No. 803/MPP/Kep/12/2002 and No.10267/KPTS-II/2002 on the establishment of the agency for revitalizing industries and forestry;
• 14. Joint Decree of the Minister of Communications, Minister of Forestry and Minister of Industry and Trade No. KM 3/2003, No. 22/KPTS-II/2003 and No. 33/MPP/Kep/1/2003 on supervision over timber transport;

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON INTER-INSULAR TIMBER TRADE

CHAPTER I
GENERAL PROVISION

Article 1

1. Timber shall be logs and/or primary processed wood.

2. Inter-insular timber trade abbreviated to PKAP shall be the trade and/or distribution of timber from an island to another island.

3. Registered Inter-insular timber traders abbreviated to PKAPT shall be individuals or business entities undertaking inter-insular timber trade that secure recognition as PKAPT.

4. Minister shall be the Minister of Industry and Trade.

CHAPTER II
REGISTRATION OF INTER-INSULAR TIMBER TRADERS

Article 2

(1) Individuals or business entities undertaking PKAP shall secure recognition as PKAPT from the Minister.

(2) The authority of the minister to give recognition as PKAPT as meant in paragraph (1) shall be executed by the Director General of Domestic Trade.

(3) In order to obtain recognition as PKAPT as meant in paragraph (1), the relevant parties shall register to the Directorate General of Domestic Trade in this case the Directorate of Market and Distribution Development.

CHAPTER III
PROVISIONS AND PROCEDURES FOR REGISTERING INTER-INSULAR TIMBER TRADE

Article 3

Applications for registration PKAPT as meant in Article 2 paragraph (3) shall be submitted to the Director General of Domestic Trade in this case the Director of Market and Distribution Development by enclosing:

• a. photocopy of business license from the authorized institution;
• b. photocopy of corporate registry number (TDP);
• c. photocopy of taxpayer code number (NPWP);
• d. photocopy of deed of establishment/amendment to companies in the case of business entities;
• e. photocopy of letter of endorsement of establishment/amendment to companies from the Minister of Justice and Human Rights in the case of business entities being in the form of limited liability companies;
• f. recommendation from regent/mayor in this case the head of service in charge of trading affairs;
• g. photocopy of citizenship identity card (KTP) of individual applicants or president director/personnel in charge of companies;
• h. color photo of individual applicants or president director/personnel in charge of companies with the size of 2 x 3 cm as many as two sheets;
• i. statement of individual applicant or president director/personnel in charge of companies on duty stamp, concerning the legitimacy of the attached documents.

Article 4

(1) The Director General of Domestic Trade shall issue PKAPT or turn down applications not later than 5 (five) working days as from the date of receipt of the applications as meant in Article 3.

(2) In the case of the applications for PKAPT as meant in paragraph (1) being rejected, the Director General of Domestic Trade shall notify in writing by disclosing reasons for rejection.

Article 5

(1) PKAPT already issued shall be given PKAPT identity number.

(2) The PKAPT identity number as meant in paragraph (1) shall be mentioned in every documents required for mentioning on the basis of the provisions of laws in force.

Article 6

(1) The recognition as PKAPT shall be valid for S (five) years and extendible.

(2) The extension of recognition as PKAPT as meant in paragraph (1) shall not change the PKAPT identity number as meant in Article 5 paragraph (1).

CHAPTER IV
REPORTING

Article 7

(1) PKAPT shall convey report on realization of inter-insular timber transport every month to the Director General of Domestic Trade in this case of the Director of Market and Distribution Development with a copy made available to the regent/mayor in this case the head of service in charge of trading affairs.

(2) The report as meant paragraph (1) shall be conveyed not later than every 5th date in the ensuing month.

(3) The regency/city service in charge of trading affairs shall convey report on recapitulation of realized PKAP coming into and out of their respective regions to the regent/mayor with a copy made available to the Director General of Domestic Trade in this case the Director of Market and Distribution Development every three months.

CHAPTER V
SANCTION

Article 8

(1) PKAPT shall be given written warning in the case of their failure to fulfill the obligation in accordance with the provisions as meant in Article 7 paragraphs (1) and (2).

(2) The written warning as meant in paragraph (1) shall be issued 3 (three) consecutively at a time interval of one Month.

Article 9

(1) The recognition as PKAPT shall be frozen in the case of:

• a. the written warning as meant in Article S paragraph (1) being already issued 3 (three) times;
• b. the relevant PKAPT being investigated for violating PKAP and/or other crimes related to activities of PKAP.

(2) The freezing period as meant in paragraph (1) shall apply until:

• a. PKAPT fulfill the obligations as meant in Article 7 paragraphs (1) and (2);
• b. a decision of the judicial institution having permanent legal power exists.

(3) As long as PKAPT are frozen, the relevant PKAPT shall be prohibited from undertaking activities of PKAP.

Article 10

The recognition as PKAPT shall be revoked in the case of:

• a. the relevant PKAPT failing to fulfill the obligations as meant in Article 7 paragraphs (1) and (2) after the freezing period elapses for three months.
• b. the relevant PKAPT are subjected to criminal sentence by the judicial institution and already having permanent legal power as meant in Article 9 paragraph (1) letter b.

Article 11

The written warning, freezing and re-enforcement as well as revocation of recognition as PKAPT shall be done by the Director General of Domestic Trade.

CHAPTER VI
MISCELLANEOUS PROVISION

Article 12

Matters not yet regulated in this decree shall be stipulated later by the Director General of Domestic Trade.

CHAPTER VII
CONCLUSION

Article 13

This decree shall come into force as from March 1, 2003.

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

Stipulated in Jakarta
On February 11, 2003
THE MINISTER OF INDUSTRY AND TRADE,
sgd
RINI M SUMARNO SOEWANDI