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ELUCIDATION OF
GOVERNMENT REGULATION IN LIEU OF LAW NO. 8 OF 1962
CONCERNING
TRADING OF GOODS UNDER SURVEILLANCE
GENERAL ELUCIDATION

With the issuance of Presidential Instruction/ Leader of Economics Operation Highest Command Instruction No. 2/Ko. T.O.E. on the basis of the Presidential Direction on the guided National Economics outlines of 1962 toward the the liberation of West Irian, in the efforts to realize a strong economic front, it is necessary in the field of trade held concentration of some kinds of activities in the hand of Authority, especially those directly related to basic society needs.

In this case, it is important the assertion of authority in the fields of trade, in accordance with the intention of holding regrouping of Working Cabinet and regulations of those matters related to the issuance and monitoring for trading of goods that are considered essential and important to the livelihoods and economic life, with the purpose to secure those goods mentioned above in order to realize Nationalization and dissemination in the field of trade.

Those essential goods are needed to be determined as the goods under surveillance of the government. Up to now there are still in effect several Laws governing the sale of goods such as:

The regulations mentioned above, most are set in the colonial era, are no longer relevant to today's situation and climate, so it is considered necessary to revoke them. In view of those objectives outlined above, by revocation of those five Laws above, also as a simplification it is issued one master that is covered all of the materials that are governed by the old rules and which affirmed the rights of Authority so that it can be expected the implementation of trading of important goods under surveillance of Government smoothly. Due to circumstances force and the implementation of Presidential/Leader of Economics Operation Highest Command Instruction, the above regulations is issued in the form of Government Regulation in Lieu of Law.

ARTICLE BY ARTICLE.

Article 1

To avoid difficulties in the interpretation of important terms and that will be frequently encountered in this Government Regulation in Lieu of Law and its implementation regulations, then there should be an explanation of these terms.

Articles 2, 3 and 4 of paragraph 1. To secure the goods that are considered important for economics life, then with or based on the Government Regulation it may determined goods as goods under surveillance. If a goods or a group of goods are determined as goods under surveillance with or based on Government Regulation, then whoever is prohibited without permission perform actions such as the sale and/or delivery and/or stock and/or transportation and/or processing of the said goods. Then, it can be governed permissions for actions of trading of goods under surveillance by fulfilling requirements determined.

Article 4, paragraph 2. For the purposes of financing the administration of the licensing for trading of the goods under surveillance, then governed the possibility of collection retribution by those who granted such permission. The amount of the retribution is determined by or based on Government Regulation.

Article 5

In this article laid the basis of the Government authority in the guided economy by specifying which areas are undertaken by the Authority and which are undertaken jointly by the Authority with private and which are can be operated by only the private sector. In the framework of guided economy, is also the determination of Authority obligations to provide guidance and assistance and coordination, although in fact such provisions covering the fields of economic life of the nation as a whole should be regulated separately. Therefore the Government Regulation in Lieu of Law is laid foundations as necessity.

Article 6

In paragraph 1 the Authority wanted a guarantee that the determined terms or provisions are truly followed, but otherwise in paragraph 2 determined that Authority will reimburse losses resulting from the relevant in meeting the requirements and provisions are forced to suffer losses.

Article 7

Self-explanatory and appointment by give rights to the officials for to implement works are essential.

Article 8

Self-explanatory.

Article 9

Transitional regulations in this chapter are necessary to prevent a vacuum regulation in connection with the revocation of the old regulations above.

Articles 10 and 11

Self-explanatory.

Known by the Secretary of State
MOHD. ICHSAN.

SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NUMBER 2469