to Indonesian
a. that based on Article 11 paragraph (4) of Law No. 36/2000 concerning Stipulation of Government Regulation in Lieu of Law No. 1/2000 concerning Free Trade Zones and Free Ports to become a Law as amended by Law No. 44/2007, the entry and removal of goods into and from Free Trade Zones and Free Ports through appointed ports and airports and under customs control, are granted exemptions of entry duty, value added tax, sales tax on luxurious goods, and excise;
b. that based on the consideration as intended in paragraph a, and in the framework to implement provisions of Article 115A paragraph (2) of Law No. 10/1995 concerning Customs as amended by Law No. 17/2006 and Article 16B paragraph (1) a of Law No. 8/1983 concerning Value Added Tax on Goods and Services, and Sales Tax on Luxurious Goods as amended several times, the latest by Law No. 18/2000, it is necessary to stipulate a Government Regulation concerning Treatment on Customs, Taxation and Excise, as well as Control on the Entry and Removal of Goods Into and From as well as are in Zones Designated as Free Trade Zones and Free Ports;
1. Article 5 paragraph (2) of the 1945 Constitution of the Republic of Indonesia;
2. Law No. 6/1983 concerning General Provisions and Procedure of Taxation (Statute Book No. 49/1983, Supplement to Statute Book No. 3262) as amended several times, the latest by Law No. 28/2007 (Statute Book No. 85/2007, Supplement toStatute Book No. 4740);
3. Law No. 7/1983 concerning Income Tax (Statute Book No. 50/1983, Supplement to Statute Book No. 3263) as amended several times, the latest by Law No. 36/2008 concerning Forth Amendment to the Law No. 7/1983 concerning Income Tax (Statute Book No. 133/2008, Supplement to Statute Book No. 4893);
4. Law No. 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxurious Goods (Statute Book No. 51/1983, Supplement to Statute Book No. 3264) as amended several times, the latest by Law No. 18/2000 (Statute Book No. 128/2000, Supplement to Statute Book No. 3986);
5. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
6. Law No. 11/1995 concerning Excise (Statute Book No. 76/1995, Supplement to Statute Book No. 3613) as amended by Law No. 39/2007 (Statute 8ook No. 105/2007, Supplement to Statute Book No. 4755);
7. Law No. 36/2000 concerning Stipulation of Government Regulation in Lieu of Law No. 1/2000 concerning Free Trade Zones and Free Ports to become a Law (Statute Book No. 251/2000, Supplement to Statute Book No. 4053) as amended by Law No. 44/2007 concerning Stipulation of Government Regulation No. 1/2007 concerning Amendment to Law No. 36/2000 concerning Stipulation of Government Regulation in Lieu of Law No. 1/2000 concerning Free Trade Zones and Free Ports to become a Law (Statute Book No. 130/2007, Supplement to Statute Book No. 4775);
GOVERNMENT REGULATION CONCERNING TREATMENT ON CUSTOMS, TAXATION, AND EXCISE, AS WELL AS CONTROL ON THE ENTRY AND REMOVAL OF GOODS INTO AND FROM AS WELL AS ARE IN ZONES DESIGNATED AS FREE TRADE ZONES AND FREE PORTS.
In this Government Regulation:
1. Customs Law is Law No. 10/1995 concerning Customs as amended by Law No. 17/2006 concerning Amendment to Law No. 10/1995 concerning Customs.
2. Minister is the Minister of Finance of the Republic of Indonesia .
3. Customs Area is the territory of the Republic of Indonesia covering land and water areas with the air above it, and certain places within the Exclusive Economy Zone and Continent Shelf wherein the Customs Law is applicable.
4. Free Trade Zone and Free Port, hereinafter called as Free Zone, is a zone within the legal territory of the Unitary State of the Republic of Indonesia separated from the Customs Area, therefore free from the imposing of import duty, Value Added Tax, Sales Tax on Luxurious Goods, and excise.
5. Customs Zone is a zone with certain borders at sea ports, air ports, or other places stipulated for the traffic of goods fully under the control of the Directorate General of Customs and Excise.
6. Customs Notification is a statement made by a Person in the framework of performing customs obligations in the form and terms stipulated in the Customs Law.
7. Customs obligations are all activities in the field of customs that must be performed to meet provisions of the Customs Law.
8. Customs Offices are offices within the Directorate General of Customs and Excise where Customs obligations are fulfilled in accordance with provisions of the Customs Law.
9. Temporary Piling Place is a building and/or field or other similar places within a Customs Zone to pile up goods, whilst waiting for its loading or removal.
10. Zone Exploitation Board is an Exploitation Board of Free Trade Zones and Free Ports.
11. Zone Council is a Free Trade Zone and Free Port Zone Council stipulated by the President having the duty and authority to stipulate general policies, to nurture, to control and coordinate activities of the Zone Exploitation Board.
12. Value Added Tax, hereinafter called as PPN, is Value Added Tax or Value Added Tax and Sales Tax on Luxurious Goods.
13. Person is an individual person or legal entity.
(1) Entry and removal of goods to and from a Free Zone is under the control of the Directorate General of Customs and Excise.
(2) Entry and removal of goods to and from a Free Zone must be performed in ports or air ports designated by the Zone Exploitation Board after receiving an approval from the Minister of Transportation.
(3) For the purpose of control and service, the Minister stipulates Customs Offices and Customs Zones at ports and air ports as intended in paragraph (2).
(4) Fulfillment of Customs obligations shall be made in the Customs Office by using a Customs Notification.
(5) The Customs Notification shall be submitted to the customs and excise official in the Customs Office.
(6) Entry and removal of goods to and from a Free Zone not passing through designated ports or airports as intended in paragraph (2), will be imposed with sanctions in the field of Customs.
(1) Entry of goods from out of Customs Area to a Free Zone may only be performed by business performers who had received business permits from the Zone Exploitation Board.
(2) The business performers as intended in paragraph (1) may only bring goods related with his business activities into a Free Zone.
(3) The quantity and type of goods related with business activities as intended in paragraph (2) is stipulated by the Zone Exploitation Board.
(4) Entry of consumption goods for the requirements of the populace from out of Customs Area into a Free Zone may only be performed by business performers who had received business permits from the Zone Exploitation Board, in quantity and type stipulated by the Zone Exploitation Board.
(1) Business performers in a Free Zone do not need to be confirmed as Tax Subject Business Performers.
(2) Delivery of goods in a Free Zone is exempted from the imposing of PPN.
The entry of goods as intended in Article 3 is granted exemption of import duty, exemption of PPN, not collected Income Tax Article 22, and/or exemption of excise.
(1) On the entry of goods not fulfilling the provisions as intended in Article 3:
(2) Re-export or destruction of the goods as intended in paragraph (1) b and d shall be performed under the control of the Zone Exploitation Board and Directorate General of Customs and Excise in accordance with provisions in the field of Customs.
(3) Further provisions on procedure of the payment of import duty, PPN and/or Income Tax Article 22, and procedure of re-export and destruction as intended in paragraph (1) shall be regulated by or based on a regulation of the Minister.
(1) Goods brought in from out of Customs Area to a Free Zone shall undergo customs checks.
(2) The customs checks as intended in paragraph (1) covers examination of documents and physical checking of goods.
(3) Customs check as intended in paragraph (2) shall be performed selectively.
(4) Further provisions on procedures of customs check as intended in paragraph (1) shall be regulated by or based on a regulation of the Minister.
(1) Goods to be removed from a Free Zone out of Customs Area are subject to document examination.
(2) In certain cases, goods to be removed from a Free Zone outside of a Customs Area may be checked physically.
(3) Provisions on procedures on document examination and physical checks as intended in paragraph (1) and paragraph (2) shall be regulated with a regulation of the Minister.
(1) Transporters whose transportation means will come from:
are required to notify plan on the arrival of transportation means to the destination Customs Office as intended in Article 2 paragraph (3).
(2) Notification of the arrival plan of the transportation means as intended in paragraph (1) shall be made:
(3) The transporter as intended in paragraph (1) entering a Free Zone must state the goods are carried in a manifest.
(4) The transporter as intended in paragraph (1) whose transportation means comes from out of Customs Area, from a Free Zone or from within the Customs Area that are transporting goods must submit Customs Notifications on goods are carried prior to unloading.
(5) In case unloading is not immediately performed, the obligation as intended in paragraph (4) shall be made:
(6) The obligation as intended in paragraphs (4) and (5) is exempted for transporters dropping anchor for 24 (twenty four) hours at the most and not unloading goods.
(7) In case the transportation means is in an emergency condition, the transporter may firstly unload imported goods, and must:
(8) Transporters not fulfilling the provisions as intended in paragraph (1) will be imposed of an administrative sanction in the form of fine of at least Rp5,000,000.00 (five million Rupiah) and Rp50,000,000.00 (fifty million Rupiah) at a maximum.
(9) Transporters not fulfilling the provisions as intended in paragraph (4), paragraph (5), or paragraph (7) will be imposed of an administrative sanction in the form of fine of at least Rp10,000,000.00 (ten million Rupiah) and Rp100,000,000.00 (one hundred million Rupiah) at a maximum.
(1) Transporters whose transportation means will depart from Free Zone with destination:
must deliver Customs Notification on goods are carried prior to the departure of the transportation means.
(2) Transporters whose transportation means are headed out from Customs Areas, from other Free Zones, or Customs Area, must state the goods as intended in paragraph (1) in its manifest.
(3) Transporters not fulfilling the provisions as intended in paragraph (1) will be imposed of an administrative sanction in the form of fine of at least Rp10,000,000.00 (ten million Rupiah) and Rp100,000,000.00 (one hundred million Rupiah) at a maximum.
(1) Goods transported by the transportation means as intended in Article 9 paragraph (1) must be unloaded in Customs Zones at designated ports or airports as intended in Article 2 paragraph (2).
(2) The unloading of goods outside of the Customs Zone as intended in paragraph (1) constitutes smuggling and will be imposed of sanctions in the field of Customs.
(3) Transporters having fulfilled the provisions as intended in paragraph (1), however the quantity of unloaded goods is less than those notified in the Customs Notification and cannot prove that the mistake occurs beyond his capacity, must pay entry duty on the shortage of the unloaded goods, and will be imposed of an administrative sanction in the form of fine of at least Rp25,000,000.00 (twenty five million Rupiah) and Rp250,000,000.O0 (two hundred fifty million Rupiah) at a maximum.
(4) Transporters having fulfilled the provisions as intended in paragraph (1), however the quantity of unloaded goods is more than those notified in the Customs Notification and cannot prove that the mistake occurs beyond his capacity will be imposed of an administrative sanction in the form of fine of at least Rp25,000,000.00 (twenty five million Rupiah) and Rp500,000,000.00 (five hundred million Rupiah) at a maximum.
(5) Whilst waiting for its removal from Customs Zone, the goods as intended in paragraph (1), may be piled in a Temporary Piling Place.
(1) Goods originating from out of Customs Area to be entered into a Free Zone must be notified of with a Customs Notification by the business performer to the Customs Office.
(2) Goods originating from out of Customs Area as intended in paragraph (1) may be removed from Customs Zone after the fulfillment of Customs obligations.
(3) Persons removing goods from a Customs Zone after fulfilling all provisions but have not yet received removal approval from Customs and Excise officials, will be imposed of an administrative sanction in the form of fine as of Rp25,000,000.00 (twenty five million Rupiah).
(4) Goods originating from out of Customs Area brought by passengers or crew of transportation means into a Free Zone on arrival must be informed of to Customs and Excise officials.
(5) Goods originating from out of Customs Area sent by post or entrusted services may only be removed on the approval of Customs and Excise officials.
(6) Further provisions on the removal of goods originating from out of Customs Area as intended in paragraph (1), paragraph (3), and paragraph (4) will be regulated by or based on a regulation of the Minister.
(1) Goods to be removed from a Free Zone out of Customs Area must be notified of with Customs Notification by the business performer to Customs Office.
(2) In case the goods to be removed from the Free Zone out of Customs Area are goods charged with exit duty, the exit duty must be paid no later than the time the Customs Notification is registered at the Customs Office.
(3) Customs Notification as intended in paragraph (1) is not required on personal goods of passengers, crew of transportation means, border crossers, and delivery goods up to customs value limit and/or a certain quantity.
(4) Loading of goods to be removed from the Free Zones as intended in paragraph (1) must be performed within the Customs Zone in the designated ports or airports as intended in Article 2 paragraph (2).
(5) Goods that had been notified of to be removed from a Free Zone out of Customs Area, whilst waiting for its loading, may be piled in a Temporary Piling Place.
(6) Goods that had been notified of to be removed from a Free Zone out of Customs Area as intended in paragraph (1), if the removal is cancelled, must be reported to the Customs and Excise officials.
(7) Business performers not reporting the cancellation of the removal of goods from Free Zone out of Customs Area as intended in paragraph (6) will be imposed of administrative sanction in the form of fine as of Rp5,000,000.00 (five million Rupiah).
(8) Removal of goods that are charged with exit duty as intended in paragraph (2) from a Free Zone out of Customs Area shall be performed in accordance with provisions of statutory regulations on exit duty.
(9) Loading of goods to be removed from a Free Zone performed outside of the Customs Zone as intended in paragraph (4) constitutes smuggling and will be imposed of sanctions in the field of Customs.
(10) Further provisions on the removal of goods out of Customs Area as intended in paragraph (1), paragraphs (3), paragraph (4), paragraph (5) and paragraph (6) shall be regulated by or based on a regulation of the Minister.
(1) Entry of goods from other places within Customs Area to a Free Zone through ports or airports as intended in Article 2 paragraph (2), is not collected as of its PPN and/or shall not be imposed of excise.
(2) Entry of goods from other places within Customs Area into a Free Zone not through the designated ports or airports as intended in Article 2 paragraph (2), is collected as of its PPN and/or excise.
(3) Entry of goods from other places within Customs Area to a Free Zone, to the extent it is related with the provision of not-collected PPN facility as intended in paragraph (1), control and administering shall be exercised by the Directorate General of Tax.
(4) Further provisions on procedures of the entry of goods as intended in paragraph (1), and control and administering as intended in paragraph (3), shall be regulated by or based on a regulation of the Minister.
(1) Goods originating from out of Customs Area to be removed from a Free Zone to other places within a Customs Area must be settled as of its entry duty, PPN, Income Tax Article 22, and/or excise.
(2) Goods originating from a Free Zone and other places within a Customs Area to be removed from the Free Zone to other places within a Customs Area must be settled as of its PPN and/or excise.
(3) Settlement of PPN on the removal of goods as intended in paragraph (2) shall be made by the person removing the goods.
(4) Procedure on the settlement of PPN on the removal of goods as intended in paragraph (2), is regulated by or based on a regulation of the Minister.
(5) Procedures on the settlement of excise on the removal of goods as intended in paragraph (2) shall be in accordance with provisions of legislations in the field of excise.
(1) Goods to be removed from a Free Zone to other places within a Customs Area must be notified of with a Customs Notification by the business performer to the Customs Office.
(2) The Customs Notification as intended in paragraph (1) is not required on personal goods of passengers, crew of transportation means, and delivery goods up to the customs value limit and/or a certain quantity.
(3) Loading of goods to be removed from the Free Zone as intended in paragraph (1) must be performed in the Customs Zone.
(4) Goods that had been notified to be removed from a Free Zone to other places within a Customs Area, whilst waiting for its loading, may be piled in a Temporary Piling Place.
(5) Goods that had been notified to be removed from a Free Zone to other places within a Customs Area as intended in paragraph (1), if the removal there-of is cancelled, must be reported to the Customs and Excise officials.
(6) Business performers not reporting the cancellation of the removal of goods from the Free Zone to other places in the Customs Area as intended in paragraph (5) will be imposed of administrative sanction in the form of fine as of Rp5,000,000.00 (five million Rupiah).
(7) In case the goods cancelled as of its removal to the other places within the Customs Area is not reported as of the cancellation of its removal as intended in paragraph (5) are the goods as intended in Article 15 paragraph (1), besides having to pay the administrative sanction as intended in paragraph (6), the business performer is also required to settle the entry duty, PPN, Income Tax Article 22, and/or excise.
(8) In case the goods cancelled as of its removal to other places within the Customs Area is not reported as of the cancellation of its removal as intended in paragraph (5) are the goods as intended in Article 15 paragraph (2), besides having to pay the administrative sanction as intended in paragraph (6), the business performer is also required to settle the PPN and/or excise.
(9) Further provisions on the removal of goods to other places within a Customs Area shall be regulated by or based on a regulation of the Minister.
Entry of goods from other Free Zones into a Free Zone is granted exemption of entry duty exemption of PPN, not collected as of Income Tax Article 22, and/or exemption of excise.
(1) Goods from other Free Zones unloaded in the Customs Zone as intended in Article 11 paragraph (1) may be removed from the Customs Zone after the fulfillment of Customs obligations.
(2) Persons removing goods from a Customs Zone after fulfilling all provisions but have not yet received a removal approval from Customs and Excise officials, will be, imposed of administrative sanction in the form of fine as of Rp25,000,000.00 (twenty five million Rupiah).
(3) Passengers or crew of transportation means carrying goods from other Free Zones, are exempted from fulfilling the Customs obligations as intended in paragraph (1).
(4) Further provisions on the entry of goods into a Free Zone from other Free Zones as intended in paragraph (1) shall be regulated by or based on a regulation of the Minister.
(1) The entry of goods from Bonded Piling Places to Free Zones is granted exemption of entry duty, not collected as of its PPN, not collected as of Income Tax Article 22, and/or exemption of excise.
(2) For the removal of goods from a Free Zone into a Bonded Piling Place, the following provisions shall apply:
(3) Provisions on the entry of goods from a Bonded Piling Place into a Free Zone and the removal of goods from a Free Zone into a Bonded Piling Place must be performed in accordance with provisions of statutory regulations in the field of Customs.
(1) Goods to be removed from a Free Zone to other Free Zones and Bonded Piling Place must be notified of with a Customs Notification by the business performer to Customs Office.
(2) Customs Notification as intended in paragraph (1) is not required on personal goods of passengers, crew of transportation means, and delivery goods up to the customs value limit and/or a certain quantity.
(3) Loading of goods to be removed from the Free Zone as intended in paragraph (1) must be performed in the Customs Zone.
(4) Goods that had been notified to be removed from a Free Zone to other Free Zones and Bonded Piling Place, whilst waiting for its loading, may be piled in a Temporary Piling Place.
(5) Further provisions on the removal of goods as intended in paragraphs (1) through (4) shall be regulated by or based on a regulation of the Minister.
(1) Customs Notification may be submitted in the form of writing on a form or in the form of electronic data.
(2) The writing on a form or the electronic data as intended in paragraph (1) shall be a valid proof pursuant to Customs Law.
(3) Further provisions on procedures concerning the submission of Customs Notification covering:
shall be regulated by or based on a regulation of the Minister.
(1) Handling of Customs Notification must be performed by transporters and business performers who had received business permits from the Zone Exploitation Board.
(2) In case the handling of Customs Notification as intended in paragraph (1) is not performed by itself, the business performer may authorize it to Customs Handling Service business performers.
(3) Further provisions on the handling of Customs Notification shall be regulated by or based on a regulation of the Minister.
(1) Utilization of Intangible Tax Subjected Goods and/or Tax Subjected Services from out of Customs Area within a Free Zone is exempted from PPN.
(2) Delivery of Intangible Tax Subjected Goods and/or Tax Subjected Services within a Free Zone is exempted from PPN.
(3) Delivery of Intangible Tax Subjected Goods and/or Tax Subjected Services from a Free Zone to other Free Zones is exempted from PPN.
(4) Delivery of Intangible Tax Subjected Goods and/or Tax Subjected Services from a Free Zone to other places within a Customs Area will be imposed of PPN.
(5) Delivery of Intangible Tax Subjected Goods and/or Tax Subjected Services from other places within Customs Area to a Free Zone is not collected as of its PPN.
(6) Delivery of Tax Subjected Services and/or Intangible Tax Subjected Goods from a Bonded Piling Place to a Free Zone is not collected as of its PPN.
(7) Delivery of Tax Subjected Services and/or Intangible Tax Subjected Goods from a Free Zone to a Bonded Piling Place, is collected as of its PPN.
(8) Provisions on procedures on the settlement of PPN on the delivery of Intangible Tax Subjected Goods and/or Tax Subjected Services as intended in paragraph (4) and paragraph (7) shall be regulated by or based on a regulation of the Minister.
(1) For the sake of control on the execution of provisions of prohibitions and restrictions, the technical agency stipulating regulations on prohibitions and/or restrictions on the Entry and Removal of Goods to or from a Free Zone is required to notify it to the Minister.
(2) All prohibited or restricted goods not meeting requirements to be brought in from out of Customs Area or removed out of Customs Area or to other places within a Customs Area, if it had been informed of with a Customs Notification, on the request of business performers having been granted a business permit by the Zone Exploitation Board:
unless such goods are stipulated otherwise based on statutory regulations.
(3) Goods that are prohibited or limited for:
not being informed of or not informed correctly, shall be stipulated as goods controlled by the State, unless stipulated otherwise based on statutory regulations.
(4) Further provisions on the exercise of control and administering of prohibited and/or restricted goods as intended in paragraphs (1) through (3) shall be regulated by or based on a regulation of the Minister.
In the performance of duty based on this Government Regulation and other statutory regulations the execution there-of is borne on the Directorate General of Customs and Excise, in order to secure rights of the State, customs and Excise officials have the authority as regulated in statutory regulations in the field of customs and excise.
Provisions on procedures to provide any information to the Zone Council and/or Zone Exploitation Board shall be regulated by or based on a regulation of the Minister.
For other provisions related with the entry of goods into a Free Zone or removal of goods from a Free Zone, provisions in the Customs Law shall be used.
Provisions on sanctions regulated in statutory regulations in the field of Customs and Taxation remain in force in a Free Zone.
By the time this Government Regulation commences to become effective, implementation regulation of:
shall still be in force to the extent they are not contradictory to and/or not yet regulated with a new implementation regulation based on this Government Regulation.
By the time this Government Regulation commences to become effective:
are revoked and declared as not effective.
This Government Regulation commences to become effective from the date enactment.
For public cognizance, this Government Regulation shall be announced in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta
on January 16, 2009
PRESIDENT OFTJE REPUBLIC OF INDONESIA,
signed,
DR. H. SUSILO BAMBANG YUDHOYONO
Elucidation of PP 2/2009