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REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
NUMBER 100 OF 2012

CONCERNING
AMENDMENT TO GOVERNMENT REGULATION NUMBER 2 OF 2011 CONCERNING SPECIAL ECONOMIC ZONES MANAGEMENT

BY THE GRACE OF ALMIGHTY GOD
PRESIDENT OF THE REPUBLIC OF INDONESIA,

Elucidation

Considering:

a. that the arrangements on the implementation of the development and management of the Special Economic Zones in the Government Regulation Number 2 of 2011 concerning Special Economic Zones Management do not regulate in detail the implementation of the development and management of the Special Economic Zones by providing options to development and operating procedures of Special Economic Zones;

b. that based on consideration as intended in paragraph a it is necessary to stipulate Government Regulation concerning Amendment to Government Regulation Number 2 of 2011 concerning Special Economic Zones Management;

In view of:

1. Article 5 paragraph (2) Constitution of the Republic of Indonesia of 1945;

2. Law Number 39 of 2009 concerning the Special Economic Zones (Statute Book of the Republic of Indonesia Number 147 of 2009, Supplement to Statute Book of the Republic of Indonesia Number 5066);

DECIDES:

To stipulate:

GOVERNMENT REGULATION CONCERNING AMENDMENT TO GOVERNMENT REGULATION NUMBER 2 OF 2011 CONCERNING SPECIAL ECONOMIC ZONES MANAGEMENT

Article I

Several provisions in Government Regulation Number 2 of 2011 concerning Special Economic Zones Management (Statute Book of the Republic of Indonesia Number 3 of 2011, Supplement to Statute Book of the Republic of Indonesia Number 5186), shall be amended as follows:

1. Elucidation Article 12 paragraphs (2) g and h shall be amended as listed in elucidation of this Ministerial Regulation.

2. Provisions of Article 31 shall be amended become as follows:

"Article 31

KEK development financed by:

a. Business Entity;

b. cooperation between the government, province government and/or regency/municipality government with the Business Entity;

c. State Revenues and Expenditures Budget and/or Regional Revenue and Expenditure Budget; and/or

d. other legitimate sources in accordance with the provisions of regulation."

3. Between Article 33 and Article 34 is inserted 1 Article, called Article 34A, read as follows:

"Article 33A

(1) In case of determined KEK was proposed by Business Entity, proposal maker Business Entity shall be determined as Business Entity to develop KEK by:

(2) In case of determination as Business Entity to develop KEK as intended in paragraph (1), proposal maker Business Entity also determined as KEK management Business Entity.

(3) Business Entity as intended in paragraph (2) has responsibility on the financing of KEK development and management."

4. Provisions of Article 34 shall be amended as follows:

"Article 34

(1) In case of determined KEK was proposed by regency/municipality government, determination of Business Entity to develop KEK conducted by regency/municipality government in open and transparent based on:

(2) In case of determination of Business Entity as intended in paragraph (1) b, Business Entity has determined as developer also determined as management Business Entity."

5. In between Article 34 and Article 35 are inserted 2 (two) Articles, called Article 34A and Article 34B, read as follows:

"Article 34A

(1) In case of determined KEK was proposed by province government, the establishment of Business Entity to develop KEK by province government in an open and transparent manner based on:

(2) In case of determination of Business Entity is as intended in paragraph (1) b, the developer Business Entity is also determined as management Business Entity.

Article 34B

(1) In case of determined KEK is proposed by ministry/non ministerial government agency, determination of Business Entity to develop KEK conducted by ministry/non ministerial government agency in an open and transparent manner based on:

(2) In determination of Business Entity as intended in paragraph (1) b, the developer Business Entity is also determined as management Business Entity."

6. Provisions of Article 35 shall be amended become as follows:

"Article 35

(1) Business Entity as intended in Article 33A carry out the KEK development and KEK management based on an agreement with the province government or regency/municipality government.

(2) Agreement as intended in paragraph (1) shall contain:

7. In between Article 35 and Article 36 are inserted 3 (three) Articles called Article 35A, Article 35B, and Article 35C, read as follows:

"Article 35A

(1) Business Entity as intended in Article 34 paragraph (1) a conducts KEK development based on the agreement of the government goods/services procurement.

(2) Business Entity as intended in Article 34 paragraph (2) conducts the KEK development and KEK management based on an agreement with the regency/municipality government.

Article 35B

(1) Business Entity as intended in Article 34A paragraph (1) a conducts KEK development based on agreement of the government goods/services procurement.

(2) Business Entity as intended in Article 34A paragraph (2) conducts the KEK development and KEK management based on an agreement with the province government.

Article 35C

(1) Business Entity as intended in Article 34B paragraph (1) a conducts the KEK development based on the agreement of the government goods/services procurement.

(2) Business Entity as intended in Article 34B paragraph (2) conducts the KEK development and KEK management based on an agreement with the ministry/non ministerial government agency."

8. Provisions of Article 47 is inserted 1 (one) paragraph, it is paragraph (4), read as follows:

"Article 47

(1) KEK management Business Entity in charge of organizing KEK business activities.

(2) KEK management Business Entity as intended in paragraph (1) is in the form of:

(3) KEK management Business Entity as intended in paragraph (1) shall be determined when the KEK development period and at least before KEK declared ready to be operated by the National Council.

(4) The provisions as intended in paragraph (3) do not apply to the KEK proposed by the Business Entity the determination as management Business Entity together with the determination as KEK management Business Entity as intended in Article 33A paragraph (2), and KEK the development and management is conducted by the mechanism of cooperation between the government and the Business Entity as intended in Article 34 paragraph (2), Article 34A paragraph (2), and Article 34B paragraph (2)."

9. Provisions of Article 48 be amended becomes as follows:

"Article 48

(1) Determination of Management Business Entity is conducted by the regency/municipality government, province government, and the ministry/non ministerial government agency according to its authority with reference to:

(2) In case of the property of the state/region in the form of KEK as intended in paragraph (1) management will be conducted by the State/Regional Owned Business Entity, it can be done by State/Regional equity participation mechanism to the State/Regional Owned Business Entity."

10. Provisions of Article 49 shall be amended becomes as follows:

"Article 49

(1) Management Business Entity as intended in Article 48 paragraph (1) conducts KEK Management based on KEK management agreement signed together by the Business Entity with the regency/municipality government, province government, or ministry/non ministerial government agency in accordance with its authority.

(2) Agreement as intended in paragraph (1) shall at least contains:

(3) In case of KEK management conducted by the State Owned Business Entity/Regional Owned Business Entity conducted by State/Region equity participation mechanisms to State Owned Business Entity/Regional Owned Business Entity as intended in Article 48 paragraph (2), KEK management not require KEK management agreement as intended in paragraph (1)."

11. Provisions of Article 52 shall be amended and inserted 1 (one) paragraph that is (3a) become as follows:

"Article 52

(1) Based on the evaluation of Zone Council as intended in Article 50, the National Council conduct an assessment of the KEK management.

(2) Based on the assessment as intended in paragraph (1), the National Council may:

(3) Recommendation of termination KEK management agreement as intended in paragraph (2) c 1 is submitted by the National Council to the Zone Council, if the Business Entity management:

(3a) Recommendation for KEK operational management improvements as intended in paragraph (2) c 2 is submitted by the National Council to the Zone Council, if the management Business Entity:

(4) Recommendation for revocation of KEK determination as intended in paragraph (2) c 3 is submitted by the National Council to the President in case of KEK management:

12. Provisions of Article 53 paragraph (3) shall be amended and supplemented a paragraph, called paragraph (4), read as follows:

"Article 53

(1) In case of Business Entity management status is revoked, province government, regency/municipality government, or ministry/non ministerial government agency processes determination of new Business Entity management within a period of 30 (thirty) working days after the revocation of management Business Entity.

(2) During the period of 30 (thirty) days working as intended in paragraph (1), temporary KEK management is conducted by province government/non ministerial government agency until the determination of the new Business Entity management.

(3) In case of management Business Entity is revoked, province government, regency/municipality government, or ministry/non ministerial government agency doing the process of establishing a new management Business Entity management in accordance with the provisions as listed in Attachment of this Government Regulation.

(4) While it is determined yet a new management Business Entity as intended in paragraph (1), KEK management shall be conducted by the Administrator."

13. Provisions on the Procedures for the Procurement of Developer Business Entity and Special Economic Zone Management in the Framework of Cooperation Agreement between the Government, the province government, or regency/municipality government with a Business Entity as list in the Attachment, shall be amended becomes provisions on the Determination of Developer and/or Management Business Entity as list in Attachment of this Government Regulation.

Article II

This Government Regulation shall come into force on the date of promulgation.

For public cognizance, this Government Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on December 3, 2012
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
signed,
DR. H. SUSILO BAMBANG YUDHOYONO

Promulgated in Jakarta
on December 3, 2012
MINISTER OF LAW AND HUMAN RIGHTS OF REPUBLIC OF INDONESIA
signed,
AMIR SYAMSUDIN

STATUTE BOOK OF THE REPUBLIC OF INDONESIA NUMBER 263 OF 2012